Deduction for new rural small-scale industries: tax deduction allowed from qualifying profits subject to conditions, audit and exclusion rules. Section 80HHA grants a deduction equal to twenty per cent of profits and gains of newly established small-scale industrial undertakings in rural areas for each of the ten assessment years starting with commencement of manufacture or production. Eligibility hinges on commencement date, rural location, absence of business splitting or reconstruction (with limited exception), restrictions on transfer of used plant, employment-size thresholds, and an installed machinery and plant value ceiling. Non-corporate claimants must furnish an auditor's report; the section borrows computation rules from section 80HH, takes precedence over section 80J, and excludes mining undertakings.
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Provisions expressly mentioned in the judgment/order text.
Deduction for new rural small-scale industries: tax deduction allowed from qualifying profits subject to conditions, audit and exclusion rules.
Section 80HHA grants a deduction equal to twenty per cent of profits and gains of newly established small-scale industrial undertakings in rural areas for each of the ten assessment years starting with commencement of manufacture or production. Eligibility hinges on commencement date, rural location, absence of business splitting or reconstruction (with limited exception), restrictions on transfer of used plant, employment-size thresholds, and an installed machinery and plant value ceiling. Non-corporate claimants must furnish an auditor's report; the section borrows computation rules from section 80HH, takes precedence over section 80J, and excludes mining undertakings.
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