Section 3 - Amendment of section 80-IA - Income Tax (Amendment) Act, 1998

3. Amendment of section 80-IA. In section 80-IA of the Income-tax Act, (a) in sub-section (1), after the words commercial production of mineral oil in the North-Eastern Region , the words, letters and figures or in any part of India on or after the 1st day of April, 1997 shall be inserted with effect from the 1st day of April, 1998; (b) 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 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 an industrially backward district of Category A or an 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 words, letters and figures or in any part of India on or after the 1st day of April, 1997 shall be inserted with effect from the 1st day of April, 1998; (d) in sub-section (5), in clause (i), in sub-clause (b), after the proviso, the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1995, namely: Provided further that in case of an industrial undertaking located in an industrially backward district of Category B, the provisions of this clause shall have effect as if for the words five assessment years , the words three assessment years had been substituted. ; (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 id) of clause (iv) of sub-section (2) or located in an industrially backward district of Category A specified in sub-clause (c) of clause (iv) of that sub-section; (iia) eight in the case of an assessee deriving profits and gains from an industrial undertaking located in an industrially backward district of Category B specified in sub-clause (c) of clause (iv) of sub-section (2) and such an undertaking is not covered under clauses (i) and (ii) of this sub-section; ; (B) in clause (iv), the following proviso shall be inserted with effect from the 1st day of April, 1998, namely: Provided that where the assessee begins operating and maintaining any infrastructure facility referred to in sub-clause (ii) of clause (ca) of sub-section (12), the provisions of this clause shall have effect as if for the word twelve , the word twenty had been substituted; ; (C) in clause (viii), 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; (f) 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 (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 project 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; .