TaxTMI 
TaxTMI 
Tea development account, coffee development account and rubber development account
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....d or the Coffee Board or the Rubber Board, as the case may be (hereafter in this section referred to as the deposit scheme), with the previous approval of the Central Government,] the assessee shall, subject to the provisions of this section,] be allowed a deduction (such deduction being allowed before the loss, if any, brought forward from earlier years is set off under section 72) of- (a) a sum equal to the amount or the aggregate of the amounts so deposited ; or (b) a sum equal to ^8[forty] per cent of the profits of such business (computed under the head "Profits and gains of business or profession" before making any deduction under this section), whichever is less : Provided that where such assessee is a firm, or any association of persons or any body of individuals, the deduction under this section shall not be allowed in the computation of the income of any partner, or as the case may be, any member of such firm, association of persons or body of individuals : Provided further that where any deduction, in respect of any amount deposited in the special account ^9[, or in the ^10[****] Deposit Account], has been allowed under this sub-section in a....
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....ertaking for the purposes of business of construction, manufacture or production of any article or thing specified in the list in the Eleventh Schedule, the whole of such amount so utilised shall be deemed to be the profits and gains of business of that previous year and shall accordingly be chargeable to income-tax as the income of that previous year.] (5) Where any amount, standing to the credit of the assessee in the special account ^14[or in the ^15[****] Deposit Account], is withdrawn during any previous year by the assessee in the circumstance specified in clause (a) or clause (d) of sub-section (3), the whole of such amount shall be deemed to be the profits and gains of business or profession of that previous year and shall accordingly be chargeable to income-tax as the income of that previous year, as if the business had not closed or, as the case may be, the firm had not been dissolved. (6) Where any amount standing to the credit of the assessee in the special account ^16[or in the ^17[****] Deposit Account] is utilised by the assessee for the purposes of any expenditure in connection with such business in accordance with the scheme ^18[or the deposit scheme], suc....
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.... of the proviso shall apply only where- (i) all the properties of the firm relating to the business or profession immediately before the succession become the properties of the company ; (ii) all the liabilities of the firm relating to the business or profession immediately before the succession become the liabilities of the company ; and (iii) all the shareholders of the company were partners of the firm immediately before the succession. (9) The Central Government, if it considers necessary or expedient so to do, may, by notification in the Official Gazette, direct that the deduction allowable under this section shall not be allowed after such date as may be specified therein. Explanation.-In this section,- ^26[(a) "Coffee Board" means the Coffee Board constituted under section 4 of the Coffee Act, 1942 (7 of 1942); (aa) "National Bank" means the National Bank for Agriculture and Rural Development established under section 3 of the National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981); (ab) "Rubber Board" means the Rubber Board constituted under sub-section (1) of section 4 of the Rubber Act, 1947 (2....
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....enditure shall be reduced by the amount so utilised and the resultant sum, if any, shall be taken into account for the purposes of this Act. (4) Where any amount, standing to the credit of the assessee in the special account, which is released during any previous year by the National Bank for being utilised by the assessee for the purposes of the business referred to in sub-section (1) in accordance with the scheme is not so utilised, either wholly or in part, within that previous year, the whole of such amount or, as the case may be, part thereof which is not so utilised shall be deemed to be profits and gains of business and accordingly chargeable to income-tax as the income of that previous year. (5) The provisions of this section shall apply in relation to the assessment years commencing on the 1st day of April, 1986, and the 1st day of April, 1987." Earlier, Inserted vide Section 7 of the Finance Act, 1985 w.e.f. 01-04-1986 And was Amended vide Section 8 of the Finance Act, 1987 w.e.f. 01-04-1988 2. Inserted vide Section 16 of the Finance Act, 2003 w.e.f. 01-04-2004 3. Inserted vide Section 16 of the Finance A....