TaxTMI 
TaxTMI 
Deduction in respect of profits and gains from newly established industrial undertakings or hotel business in backward areas
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....qual to twenty per cent thereof. (2) This section applies to any industrial undertaking which fulfils all the following conditions, namely :- (i) it has begun or begins to manufacture or produce articles after the 31st day of December, 1970 ^2[but before the 1st day of April, 1990], in any backward area; (ii) it is not formed by the splitting up, or the reconstruction, of a business already in existence in any backward area : Provided that this condition shall not apply in respect of any industrial undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such industrial undertaking as is referred to in section 33B, in the circumstances and....
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....in computing the total income in respect of each of the ten assessment years beginning with the assessment year relevant to the previous year in which the industrial undertaking begins to manufacture or produce articles or the business of the hotel starts functioning : Provided that,- (i) in the case of an industrial undertaking which has begun to manufacture or produce articles, and (ii) in the case of the business of a hotel which has started functioning, after the 31st day of December, 1970, but before the 1st day of April, 1973, this sub-section shall have effect as if the reference to ten assessment years were a reference to ten assessment years as reduced by the number of assessment years which expired before t....
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....icer, the computation of the profits and gains of the industrial undertaking or the business of the hotel in the manner hereinbefore specified presents exceptional difficulties, the ^5[Assessing] Officer may compute such profits and gains on such reasonable basis as he may deem fit. Explanation.-In this sub-section, "market value" in relation to any goods means the price that such goods would ordinarily fetch on sale in the open market. (7) Where it appears to the ^6[Assessing] Officer that, owing to the close connection between the assessee carrying on the business of the industrial undertaking or the hotel to which this section applies and any other person, or for any other reason, the course of business between them is so arranged ....
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....as to have retrospective effect to a date not earlier than the 1st day of April, 1983.] **************** NOTES:- 1. Inserted vide Section 9 of the Direct Taxes (Amendment) Act, 1974 w.e.f. 01-04-1974 2. Inserted vide Section 20 of the Finance Act, 1990 w.e.f. 01-04-1990 3. Inserted vide Section 20 of the Finance Act, 1990 w.e.f. 01-04-1990 4. Substituted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 before it was read as, "Income-tax" 5. Substituted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 before it was read as, "Income-tax" 6. ....