REGISTERED No. DL-33004/97 Zhc <ba&ette of 3ndia - EXTRAORDINARY
PART II—Section 1 PUBLISHED BY AUTHORITY No. 651 NEW DELHI, FRIDAY, DECEMBER 26,1997 / PAUSA 5,1919 Separate pacing is given to this Part in order that It may be filed as a separate compilation.
MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 26th December, \997/Pausa 5. 1919 (Saka) THE INCOME-TAX ( AMENDMENT) SECOND ORDINANCE, 1997 No. 28 OF 1997 Promulgated by the President in the Forty-eighth Year of the Republic of India.
An Ordinance further to amend Lhe Income-tax, Act, 1961.
WHEREAS the Income-tax (Amendment) Ordinance, 1997 further to amend the Income-tax Act, 1961 was promulgated by the President on the J6th day of September, 1997;
AND WHEREAS the Income-tax (Amendment) Oidinance, 1997 could not be replaced by an Act of Parliament due to the dissolution of the House of the People;
AND WHEREAS the House of the People has been dissolved and the Council of States is not in session and the President is satisfied that circumstances exist which renderit necessary for him to take immediate action;
Now, THEREFORE, in exercise of the powers conferred by clause (7) of article 123 of the Constitution, the President is. pleased to promulgate the following Ordinance:—
1. U) This Ordinance may be called the Income-lax (Amendment) Second Ordinance,
1997.
(2) Save as otherwise provided in this Ordinance, it shall be deemed to have come into force on the 16th day of September, 1997.
Short title and commencement 2 THE GAZETTE OF INDIA EXTRAORDINARY [PAKT-11— Amendment of section 32.
2. In section 32 of the Income-tax Act, 1961 (hereinafter referred to as the Incometax Act), in sub-section (/), with effect from the 1st day of April, 1998,—
(a) before clause (ii), the following clause shall be inserted, namely:— "(«') in the case of assets of an undertaking engaged in generation or generation and distribution of power, such percentage on the actual cost thereof to the assesses as may be prescribed;";
(b) for the second proviso, the following proviso shall be substituted, namely:— "Provided further that where an asset referred to in clause (i) or clause («), as the case may be, is acquired by the assessee during the previous year and is put to use for the purposes of business or profession for a period of less than one hundred and eighty days in that previous year, the deduction under this sub-section in respect of such asset shall be restricted to fifty per cent, of the amount calculated at the percentage prescribed for an asset under clause (i) or clause (it), as the case may be:";
43 of 1961.
Amendment of section 80-IA
3. In section 80-IA of the Income-tax Act,—
(a) in sub-section (0 . after the words "commeidal production of mineral oil in this North-Eastern Region", the words, letters and figures "or in any part of India on or after the 1 si day of April, 1997" shall be inserted with effect from the 1st day of April, 1998;
(b) in sub-section (2), in clause (rv),— («') in sub-clause (b), the following proviso shall be inserted with effect from the 1st day of April, 1998, namely:— 'Provided that in the case of an industrial undertaking set up in any part of India for the generation, or generation and distribution, of power, the period ending shall have effect as if for the figures "1998", the figures "2000" had been substituted.';
(ii) in sub-clause (c), after the words "specify in this behalf, the words and letters "as industrially backward district of Category A or industrially backward district of Category B and" shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1995;
(c) in sub-section (4E), after the words "North-Eastern Region", the word.s, letters and figures "or in any part of India on or after the 1 st day of April, 1997" shall be inserted with effect from the 1st day of April, 1998;
(c{) in sub-section (5), in clause (0. in sub-clause (b), after the proviso, the following proviso shall be inserted and shall be deemed to have been inserted wilh effect from the 1st day of April, 1995, namely:— 'Provided further that in case of an industrial undertaking located in Category E industrially backward district, the provisions of this clause shall have effect as if for the words "five assessment years", the words "three assessment years'" had been substitu'ed.1;
(e) in sub-section (6),— (A) for clause {ii), the following clauses shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 1995, namely:— "(ii) ten in the case of an assessee, not being a co-operative society, deriving profits and gains from an industrial undertaking specified in sub-clause (a) or sub-clause (b) or sub-clause (d) of clause (iv) of subsection (2) or located in Category A backward districts specified in subclause (c) of clause (iv) of that sub-section;
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 3
(iia) eight in the case of an assesses deriving profits and gains from an industrial undertaking located in Category B districts specified in sub clause (c) of clause (iv) of sub-sC'on (2) and such an undertaking is not covered uniict clauses (i) and (u) of this sub-section;";
(li) in clause (iv), the following proviso shall be inserted with effect from the 1 st day of April, 1998, namely:— 'Provided thai where the assessee begins operating and maintaining any infrastructure facility referred to in sub-clause (ii) of clause (ca) of sub-section (J2), the provisions of this clause shall have effect as if for the word "twelve", the word "twenty" had been substituted;';
(C) in clause (yiit), after the words "commercial production of mineral oil in the North-Eastern Region", the words, letters and figures "and other parts of the country on or after the 1st day of April, 1997" shall be inserted with effect from the 1st day of April, 1998;
(j) after sub-Section (7), the following sub-section shall be inserted with effect from the 1st day of April, 1998, namely:— "(7A) Notwithstanding anything contained in sub-section (4A), where housing or other activities are an integral part of the highway project and the profits of which are computed on such basis and manner as may be prescribed, such profit shall not be liable to tax where the profit has been transferred to a special reserve account and the same is actually utilised for the highway project excluding housing and other activities before the expiry of three years following the year in which such amount was transferred to the reserve account; and the amount remaining unutilised shall be chargeable to tax as income of the year in which transfer to reserve account took place.";
(g) in sub-section (72), for clause (ca), the following clause shall be substituted with effect from the 1st day of April, 1998, namely:— '(ca) "infrastructure facility" means— (0 a road, bridge, airport, port, rail system or any other public facility of a similar nature as may be notified by the Board in this behalf in the Official Gazette;
(ii) a highway including housing or other activities being an integral part of the highway project; and (Hi) a water supply project, irrigation project, sanitation and sewerage system;'.
Ord.
15 of 1997.
4. (1) The Income-tax (Amendment) Ordinance, 1997, is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the Incometax Act, as amended by the said Ordinance, shall be deemed to have been done or taken under the Income-tax Act, as amended by this Ordinance.
Repeal and Saving.
K. R. NARAYANAN, President.
K. L. MOHANPURIA, Secy, to the Govt. of India.
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