Section 12 - Amendment of section 35AD - Finance (No. 2) Act, 2014

Amendment of section 35AD 12. In section 35AD of the Income-tax Act, with effect from the 1st day of April,2015,- (a) in sub-section (3), after the words no deduction shall be allowed under the provisions of , the words, figures and letters section 10AA and shall be inserted; (b) in sub-section (5),- (i) in clause (ah), the word and occurring at the end, shall be omitted; (ii) after clause (ah), the following clauses shall be inserted, namely:- (ai) on or after the 1st day of April, 2014, where the specified business is in the nature of laying and operating a slurry pipeline for the transportation of iron ore; (aj) on or after the 1st day of April, 2014, where the specified business is in the nature of setting up and operating a semi-conductor wafer fabrication manufacturing unit, and which is notified by the Board in accordance with such guidelines as may be prescribed; and ; (c) after sub-section (7), the following sub-sections shall be inserted, namely: (7A) Any asset in respect of which a deduction is claimed and allowed under this section shall be used only for the specified business, for a period of eight years beginning with the previous year in which such asset is acquired or constructed. (7B) Where any asset, in respect of which a deduction is claimed and allowed under this section, is used for a purpose other than the specified business during the period specified in sub-section (7A), otherwise than by way of a mode referred to in clause (vii) of section 28, the total amount of deduction so claimed and allowed in one or more previous years, as reduced by the amount of depreciation allowable in accordance with the provisions of section 32, as if no deduction under this section was allowed, shall be deemed to be the income of the assessee chargeable under the head Profits and gains of business or profession of the previous year in which the asset is so used. (7C) Nothing contained in sub-section (7B) shall apply to a company which has become a sick industrial company under sub-section (1) of section 17 of the Sick Industrial Companies (Special Provisions) Act, 1985, [1 of 1986]during the period specified in sub-section (7A). ; (d) in sub-section (8), in clause (c), after sub-clause (xi), the following sub-clauses shall be inserted, namely:- (xii) laying and operating a slurry pipeline for the transportation of iron ore; (xiii) setting up and operating a semi-conductor wafer fabrication manufacturing unit notified by the Board in accordance with such guidelines as may be prescribed; .