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TMI BlogSpecial provision in respect of specified business.X X X X Extracts X X X X X X X X Extracts X X X X ..... s beginning from the year in which the eligible start-up is incorporated. (3) This section applies to a start-up which fulfils the following conditions:- (a) it is not formed by splitting up, or the reconstruction, of a business already in existence; (b) it is not formed by the transfer to a new business of machinery or plant previously used for any purpose. (4) Where the business of any undertaking carried on in India is discontinued in any tax year by reason of extensive damage to, or destruction of, any building, machinery, plant or furniture owned by the assessee and used for the purposes of such business as a direct result of- (a) flood, typhoon, hurricane, cyclone, earthquake or other convulsion of nature; or (b) riot or civ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r plant used in the business, then, for the purposes of sub-section (3)(b), the condition specified therein shall be considered to have been complied with. (7) Irrespective of anything contained in any other provision of this Act, the profits and gains of an eligible business to which the provisions of sub-section (1) apply shall, for the purposes of determining the quantum of deduction under that sub-section for the tax year immediately succeeding the initial tax year or any subsequent tax year, be computed as if such eligible business were the only source of income of the assessee during the initial tax year and to every subsequent tax year up to and including the tax year for which the determination is to be made. (8) The deduction und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as he may deem fit. (11) For the purposes of sub-section (9), "market value", in relation to any goods or services, means- (i) the price that such goods or services would ordinarily fetch in the open market; or (ii) the arm's length price as defined in section 173(a), where the transfer of such goods or services is a specified domestic transaction referred to in section 164. (12) Where any amount of profits and gains of an undertaking or of an enterprise in the case of an assessee is claimed and allowed under this section for any tax year, deduction to the extent of such profits and gains shall not be allowed under any other provisions of Part C of this Chapter and shall in no case exceed the profits and gains of such eligible bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el with a high potential of employment generation or wealth creation; (b) "eligible start-up" means a company or a limited liability partnership engaged in eligible business which fulfils the following conditions:- (i) it is incorporated on or after the 1st April, 2016 but before the 1st April, 2030; (ii) the total turnover of its business does not exceed one hundred crore rupees in the tax year relevant to the tax year for which deduction under sub-section (1) is claimed; and (iii) it holds a certificate of eligible business from the Inter-Ministerial Board of Certification as notified by the Central Government; and (c) "limited liability partnership" means a partnership referred to in section 2(1)(n) of the Limited Liability Par ..... X X X X Extracts X X X X X X X X Extracts X X X X
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