The Income-Tax (Amendment) Ordinance, 1997

43ofl96l ~ ~- "it.~.-33004 /97 --- REGISTER ?52] No. S2] - ED NO. or,..33004/97 EXTRAORDINARY . 'WTll-~1 • PART ll-Section 1 ':· ~~~ PUBLISHED BY AUTHORITY , • ~~- NEW DELHI,~~~~ 16 • 1997 / ~ 2S, 1919 ' PTEMBER, l6, 1997 I Bhadra 25, 1919 ~\:{(1'f~~~~ctt'Glliltt~~1'l~~<fil-lfif'{ffl~'ri;, Separate paging is given to this Part in order that it ma be ru d Y e as a separate compilation. . MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi; the 16th September; .1991/Bhadra 25, 1919 (Saka) . , TiiB INCOME-TAX (AMENDMENT) ORDINANCE, 1997 .. No. 15 OF 1997 . • · • Promulgated by the Presid~nt_ in the Fprty-eighth Year of the Republic of India. • • • An Ordinance further to amend the Income~tax Act, 1961. WHEREAS the Income-tax (Second Amendment) Bill, 1997 has been introduced in Parliament but has not yet, _been passed; AND WHEREAS Parliament is not in session and the President is satisfied that circum­ stances exist which render it necessary for him to take immediate action to give effect to the provisions of the said Bill and to make,certain other amendments to the Income-tax Act, 1961,; . : ·, . , Now, TIIEREFO~, in exercise of the powers conferred by clause(/) of article 123 of the Constitution, the President is pleased to promulgate the following Ordinance:- 1. (1) This Ordinance may be call~d the Income-tax(Amendme11t) Ordinance, 1997. , • , (2) Save. as otherwise provided .~n. this:Qrdinance, it shall come into force at once. 2. In section 32 of the Income-tax Act; 1961 (her~inafter referred to as the Income­ tax Act), in sub-section (J), with effect from the 1st day of April, 1998,- Short title and commences ment. Amendment of section 32. • IUtJOQ 80-JA. • •• . ' . .. ✓.• : :.. • • • ., ' ' 'j'' ' ·:·.-. ft: !!_2==··=· = .. ·=· =·=-=::::1::1-1::E::O:::A:::ZB:=l::•1:::E::O:::P:=IND::::::IA:::=EXTRA:=:::=::O=R=~=IN=AR=Y=:· = .. =··=· ·:::(P::::· ~=:::::D-=.:l = ' 't ; . . , ; -.. • • -> ' (a) before clause (ii), die following clause shaJI be inser&ed, 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 assessee as may be prescribed;''; ~:: . . :.·-t1 . , (b) for the second proyiso. the following pioviJO shall be substitutedt namely:-- f ', .l •• ''Provided further that where an asset referTed to in clause (i) or clause (ii), as t~ ~­ the case may be, is acquired by the assessee during th~ previous year and is put to ~:. use for the purposes of bu_siness or profession. f~r a period ~f less than_~~ hundred ;, and eighty da)'S in that previous y~, the deducuon unde~ this sub-section Jn respect >· of such assets shall be restricted to fifty per cent, of the amount calculated at the :.~. percentage, prescribed for an asset under clause (i) or clause (ii), as the case may t:- • be·'' • • 3. In seciion 80-IA of the Income-tal Act,- 1 • . (a) in sub.section (2), in clause (iv), . . . • (i) in sub.clause (b), the following proviso shall be inserted with effect from the 1st day of April, 1998, namely:·- - . • 'Provided ~ 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 1etters "as industrially backward district of Category '>,: or ind usu ially backward district of Category 'B' and'' shall be inserted and shall be deemed to have bee~ inserted with effect fro1n the 1st day of April, 1995; . . . . • (b) in sub-section (41):),; after the words, ~orth-Fatem Region", the words. letters and figures ''or in any part of India on or after the 1st day of April, 1997" shall be insei led with effect from the 1st day of April, 1998; (c) in sub-section (5), in clause (i), in stJb.clause (b), after. the proviso the following proviso shall be inserted and shall be deemed to have been insested with effect from lhe 1st day of April, 1995, namely:·- . - . 1 , • 'Pr~ded further that_ in _case of an indusrrial undel1aldng located in Category B industrially backward distnct, the provisions of this clause shall have effect as if for ~ words ''five ~ssment years",. the ~ords ''three assess1ncnt yea1s" had been substituted:; • · • • , (d) in sub section ( 6),.-- ~- ,. · : : : ... , .. · . .. -: '•'!,· •. " . . - (A) f<r clause (ii), the following clauses shall l,e substituted and shall be • dcenJed, to ha~e .been substituaed, with ef(ect from the 1st day of April, t 995 · . namely;- : , • ,, . • • . . ' . " . ' . • • "Cu? ten in~ case of any other~ deriving.profits and gains from~- 1ndu~trta) ~ndertaking other than an industrial undertaking _ .. ~-:. ~ '. - '" •~ in an mdustrial)y b~kward d.istrict of Category 'B'; _ • ; • :•. · _,_··· (i~) ei~t D:l the~ of an assessee deriving profits and gains ~ ~ _ . f~m an m~al unda lald~g located in an industrially backward district of-Category '81;"; : .-. • ·.-, • : - • • .. ' • • (B) in clause (iv)~ the following ptoviro &ball be inscrkd wid1 effect froJJl the lst day of April. 1998, nar,aely:-.. " 'P ovided. · . • . • • -r-~ wbae the assessee begim ope,ating and maintmning any ID~tructure fac1l1ty referred to in sub-clause {ii) of clause (ca) of sub-.. • , . . ... . , ' " ., .. , . ... - . . ·' ., . ·, ,. . . ·,. < ·,. ·i_ . ' . . .. : . , ·' . . . . . .. . . . . ·.­. ' ....... • ·::.: , . . ... . . . • ' " . , " ,, ' • .. .: ,. •,' . . :•· . " . , •, ., .... '. . . , .. . . ... . , . : ' . '· ' . " . . : .. .:_. " . ,,"f.' ' . . . . .. . • . . '· . : .. ::: ====Tiffi==G=AZEITE===O=P=IND=lA:::::::EXTRA=~=;O~R;D;IN;;AR;Y~=====~'3 ~ ~ 2) ,th • • fthi section (J , e provisions O s clause shall have effect as if for the word "twelve", the word "twenty" bad been substituted.'; . (e) after sub-secti~n (7), the fo~lowing sub-section shall be inserted with effect fr0t11 the 1st day of Apnl, 1998, namely:- "(7 A) 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 e:llcluding 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."; (/) in sub-section (12), for clause (ca), the following clause shall be substituted with effect from the 1st day of April, 1998, namely:- '(ca) "infrastructure facility" means- (i) 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 (iii) a water supply project, irrigation project, sanitation and sewerage system;'. K. R. NARAYANAN, President. K. L. MOHANPURIA, Secy. to the Govt. of India. I ESS (PLU) MINTO ROAD, NEW DBI.JU ANO l'RltfflID BY THE MANAGER, QOVERNMl:Nf OF INDOIAF ~~urA.TION~. DEUU 1997. · PUBLISHED BY 'fflE CONTROLLER · rt_..,.. . . I · \ • I • - \