Page 137 - DCOM508_CORPORATE_TAX_PLANNING

Corporate Tax Planning

Notes (b) the particulars, as may be prescribed in this behalf, have been furnished by the assessee in
respect of new machinery or plant along with the return of income for the assessment year
relevant to the previous year in which such plant or machinery was first put to use.

Where any amount credited to the Special Economic Zone Re-investment Allowance Reserve
Account under clause (ii) of sub-section (1A):

(a) has been utilised for any purpose other than those referred to in sub-section (1B), the
amount so utilised; or

(b) has not been utilised before the expiry of the period specified in sub-clause (i) of clause (a)
of sub-section (1B), the amount not so utilised, shall be deemed to be the profi ts,—
(i) in a case referred to in clause (a), in the year in which the amount was so utilised; or

(ii) in a case referred to in clause (b), in the year immediately following the period of
three years specified in sub-clause (i) of clause (a) of sub-section (1B), and shall be

charged to tax accordingly.
In computing the total income of the assessee of the previous year relevant to the assessment
year immediately succeeding the last of the relevant assessment years, or of any previous year,
relevant to any subsequent assessment year:
(i) Section 32, section 32A, section 33, section 35 and clause (ix) of sub-section (1) of section
36 shall apply as if every allowance or deduction referred to therein and relating to or
allowable for any of the relevant assessment years in relation to any building, machinery,
plant or furniture used for the purposes of the business of the undertaking in the previous
year relevant to such assessment year or any expenditure incurred for the purposes of such
business in such previous year had been given full effect to for that assessment year itself
and accordingly sub-section (2) of section 32, clause (ii) of sub-section (3) of section 32A,
clause (ii) of sub-section (2) of section 33, sub-section (4) of section 35 or the second proviso
to clause (ix) of sub-section (1) of section 36, as the case may be, shall not apply in relation
to any such allowance or deduction;
(ii) No loss referred to in sub-section (1) of section 72 or sub-section (1) or sub-section (3) of
section 74, in so far as such loss relates to the business of the undertaking, shall be carried
forward or set off where such loss relates to any of the relevant assessment years 13;

(iii) No deduction shall be allowed under section 80HH or section 80HHA or section 80-I or
section 80-IA or section 80-IB in relation to the profits and gains of the undertaking; and

(iv) In computing the depreciation allowance under section 32, the written down value of any
asset used for the purposes of the business of the undertaking shall be computed as if the
assessee had claimed and been actually allowed the deduction in respect of depreciation
for each of the relevant assessment year.

132 LOVELY PROFESSIONAL UNIVERSITY