Section 20 - Substitution of new section for section 80K - Taxation Laws (Amendment) Act, 1970

20. Substitution of new section for section 80K. For section 80K of the Income-tax Act, the following section shall be, and shall be deemed to have been, substituted with effect from the 1st day of April, 1968, namely:- 80K. Deduction in respect of dividends attributable to profits and gains from new industrial undertakings or ships or hotel business. Where the gross total income of an assessee, being (a) the owner of any share or shares in a company, or (b) a person who is chargeable to tax under this Act on the income by way of dividends on any share or shares in a company owned by any other person, includes any income by way of dividends paid or deemed to have been paid by the company in respect of such share or shares, there shall, subject to any rules that may be made by the Board in this behalf, be allowed, in computing his total income, a deduction from such income by way of dividends of an amount equal to such part thereof as is attributable to the profits and gains derived by the company from an industrial undertaking or ship or the business of a hotel, on which no tax is payable by the company under this Act for any assessment year commencing prior to the 1st day of April, 1968, or in respect of which the company is entitled to a deduction under section 80J for the assessment year commencing on the 1st day of April, 1968, or for any subsequent assessment year. .