Section 23 - Amendment of section 104 - Finance Act, 1964

23. Amendment of section 104 In section 104 of the Income-tax Act,- (i) in sub-section (1), for the words, brackets and figures sub-section (2) and of sections 105, 106 and 107 , the words figures and letter this section and of sections 105, 106, 107 and 107A shall be substituted; (ii) after sub-section (2), the following sub-sections shall be inserted, namely:- (3) If the Central Government is of opinion that it is necessary or expedient in the public interest so to do, it may, by notification in the Official Gazette and subject to such conditions as may be specified therein, exempt any class of companies to which the provisions of this section apply from the operation of this section. (4) Without prejudice to the provisions of section 108, nothing contained in this section shall apply to- (a) an Indian company whose business consists wholly or mainly in the manufacture or processing of goods or in mining or in the generation or distribution of electricity or any other form of power; (b) an Indian company, the value of whose capital assets, being machinery or plant (other than office appliances or road transport vehicles), as shown in its books on the last date of the relevant previous year is fifty lakhs of rupees or more. Explanation.- For the purposes of clause (a) of this sub-section, the business of a company shall be deemed to consist mainly in the manufacture or processing of goods or in mining or in the generation or distribution of electricity or any other form of power, if the income attributable to any of the aforesaid activities included in its total income for the relevant previous year is not less than fifty-one per cent. of such total income .