33AB. Tea development account ,coffee development account
and rubber deve-lopment account.- (1) Where an assessee
carrying on business of growing and manufacturing tea or coffee
or rubber in India has, before the expiry of six months from
the end of the previous year or before the due date of furnishing
the return of his income, whichever is earlier,—
(a) deposited with the National Bank any amount or amounts
in an account (hereafter in this section referred to as the
special account) maintained by the assessee with that Bank
in accordance with, and for the purposes specified in, a scheme
(hereafter in this section referred to as the scheme) approved
in this behalf by the Tea Board or the Coffee Board or the
Rubber Board ; or
(b) deposited any amount in an account (hereafter in this
section referred to as the Deposit Account) opened by the
assessee in accordance with, and for the purposes specified
in, a scheme framed by the Tea Board 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 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, or in the Deposit
Account, has been allowed under this sub-section in any previous
year, no deduction shall be allowed in respect of such amount
in any other previous year.
(2) The deduction under sub-section (1) shall not be admissible
unless the accounts of such business of the assessee for the
previous year relevant to the assessment year for which the
deduction is claimed have been audited by an accountant as
defined in the Explanation below sub-section (2) of section
288 and the assessee furnishes, along with his return of income,
the report of such audit in the prescribed form duly signed
and verified by such accountant :
Provided that in a case where the assessee is required by
or under any other law to get his accounts audited, it shall
be sufficient compliance with the provisions of this sub-section
if such assessee gets the accounts of such business audited
under such law and furnishes the report of the audit as required
under such other law and a further report in the form prescribed
under this sub-section.
(3) Any amount standing to the credit of the assessee in
the special account or the Deposit Account shall not be allowed
to be withdrawn except for the purposes specified in the scheme
or, as the case may be, in the deposit scheme or in the circumstances
specified below :—
(a) closure of business ;
(b) death of an assessee ;
(c) partition of a Hindu undivided family ;
(d) dissolution of a firm ;
(e) liquidation of a company.
(4) Notwithstanding anything contained in sub-section (3),
where any amount standing to the credit of the assessee in
the special account or in the Deposit Account is released
during any previous year by the National Bank or withdrawn
by the assessee from the Deposit Account, and such amount
is utilised for the purchase of—
(a) any machinery or plant to be installed in any office
premises or residential accommodation, including any accommodation
in the nature of a guest-house;
(b) any office appliances (not being computers);
(c) any machinery or plant, the whole of the actual cost
of which is allowed as a deduction (whether by way of depreciation
or otherwise) in computing the income chargeable under the
head “Profits and gains of business or profession”
of any one previous year;
(d) any new machinery or plant to be installed in an industrial
undertaking 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 or in the 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 or in the Deposit Account is utilised
by the assessee for the purposes of any expenditure in connection
with such business in accordance with the scheme or the deposit
scheme, such expenditure shall not be allowed in computing
the income chargeable under the head “Profits and gains
of business or profession”.
(7) Where any amount, standing to the credit of the assessee
in the special account or in the Deposit Account, which is
released during any previous year by the National Bank or
which is withdrawn by the assessee from the Deposit Account
for being utilised by the assessee for the purposes of such
business in accordance with the scheme or the deposit 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 :
Provided that this sub-section shall not apply in a case where
such amount is released during any previous year at the closure
of the account in circumstances specified in clauses (b),
(c) and (e) of sub-section (3).
(8) Where any asset acquired in accordance with the scheme
or the deposit scheme is sold or otherwise transferred in
any previous year by the assessee to any person at any time
before the expiry of eight years from the end of the previous
year in which it was acquired, such part of the cost of such
asset as is relatable to the deduction allowed under sub-section
(1) shall be deemed to be the profits and gains of business
or profession of the previous year in which the asset is sold
or otherwise transferred and shall accordingly be chargeable
to income-tax as the income of that previous year :
Provided that nothing in this sub-section shall apply—
(i) where the asset is sold or otherwise transferred by
the assessee to Government, a local authority, a corporation
established by or under a Central, State or Provincial Act
or a Government company as defined in section 617 of the Companies
Act, 1956 (1 of 1956) ; or
(ii) where the sale or transfer of the asset is made in
connection with the succession of a firm by a company in the
business or profession carried on by the firm as a result
of which the firm sells or otherwise transfers to the company
any asset and the scheme or the deposit scheme continues to
apply to the company in the manner applicable to the firm.
Explanation.—The provisions of clause (ii) 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,—
(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
(24 of 1947);
(b) “Tea Board” means the Tea Board established
under section 4 of the Tea Act, 1953 (29 of 1953).
|
