Deduction for new industrial undertakings and hotels in backward areas allowed subject to formation, employment and audit conditions. Section 80HH allows a deduction from profits of newly established industrial undertakings and qualifying hotel businesses in backward areas, subject to commencement within prescribed periods, non reconstruction or excessive transfer of used plant, employment thresholds for manufacturing, Central Government approval for hotels, and an accountant's audit report for non company assessees. The deduction applies for a defined number of assessment years beginning with the year operations commence; inter company or intra business transfers must be valued at market value and the Assessing Officer may adjust profits where arrangements produce more than ordinary profits.