{"act":{"id":"finance-act-1977","short_title":"The Finance Act, 1977","long_title":"An Act to give effect to the financial proposals of the Central Government for the financial year 1977-1978.","act_number":"11","act_year":1977,"enact_date":"1977-08-06","enforcement_date":null,"ministry":"Ministry of Finance","department":"Department of Revenue","jurisdiction":"CENTRAL","unit":"section","section_count":37,"in_force":true,"spent":false,"spent_note":null,"duplicate_of":null,"text_source":"published","scan_url":null,"url":"https://indiacode.ecourtsindia.com/finance-act-1977/"},"unit":"section","section":{"number":"21","heading":"Amendment of section 109","text":"Amendment of section 109 21. In section 109 of the Income-tax Act, with effect from the 1st day of April, 1978,— (a) clause (ia) shall be omitted; (b) in clause (iii),— (i) in sub-clause (1), for the words \"an industrial company or a consultancy service company\", the words \"a consultancy service company\" shall be substituted; (ii) for sub-clause (3), the following sub-clause shall be substituted, namely:— \" (3) in the case of an Indian company, not being an Indian company referred to in clause (a) of sub-section (4) of section 104 or a consultancy service company, a part of whose gross total income consists of profits and gains attributable to— (i) the business of construction of ships or of manufacture or processing of goods or of mining or of generation or distribution of electricity or any other form of power; or (ii) the business of provision of technical know-how, or of rendering services in connection with the provision of technical know-how, to other persons— (a) in relation to that part of its gross total income as is attributable to the business referred to in item (i) of this sub-clause  ........................ Nil; (b) in relation to that part of its gross total income as is attributable to the business referred to in item (ii) of this sub-clause  ........................ 45 %; (c) in relation to the remaining part of its gross total income— (1) if it is an investment company or a company which satisfies the conditions specified in sub-clause (4) (a) of this clause  ........................ 90%; (2) in any other case ........................ 60%. Explanation.—The provisions of this Chapter shall apply as if each of the aforesaid parts of the gross total income of the company were the gross total income of the company in relation to that part and as if the amount of dividends actually distributed and the distributable income were also similarly apportioned for the purposes of section 104 and this section;\". [Finance (No. 2) Act, 1977] © Copyright. Taxmann Publications Pvt. Ltd.","html":"<p><b>Amendment of section 109</b></p><p><b>21.</b> In section 109 of the Income-tax Act, with effect from the 1st day of April, 1978,—</p><p>(<i>a</i>) clause (<i>ia</i>) shall be omitted;</p><p>(<i>b</i>) in clause (<i>iii</i>),—</p><p>(<i>i</i>) in sub-clause (<i>1</i>), for the words \"an industrial company or a consultancy service company\", the words \"a consultancy service company\" shall be substituted;</p><p>(<i>ii</i>) for sub-clause (<i>3</i>), the following sub-clause shall be substituted, namely:—</p><p>\" (<i>3</i>) in the case of an Indian company, not being an Indian company referred to in clause (<i>a</i>) of sub-section (<i>4</i>) of section 104 or a consultancy service company, a part of whose gross total income consists of profits and gains attributable to—</p><p>(<i>i</i>) the business of construction of ships or of manufacture or processing of goods or of mining or of generation or distribution of electricity or any other form of power; or</p><p>(<i>ii</i>) the business of provision of technical know-how, or of rendering services in connection with the provision of technical know-how, to other persons—</p><p>(<i>a</i>) in relation to that part of its gross total income as is attributable to the business referred to in item (<i>i</i>) of this sub-clause <i> ........................ Nil;</i></p><p>(<i>b</i>) in relation to that part of its gross total income as is attributable to the business referred to in item (<i>ii</i>) of this sub-clause <i> ........................ </i>45 %;</p><p>(<i>c</i>) in relation to the remaining part of its gross total income—</p><p>(<i>1</i>) if it is an investment company or a company which satisfies the conditions specified in sub-clause (<i>4</i>) (<i>a</i>) of this clause <i> ........................ </i>90%;</p><p>(<i>2</i>) in any other case <i>........................ </i>60%.</p><p><i>Explanation</i>.—The provisions of this Chapter shall apply as if each of the aforesaid parts of the gross total income of the company were the gross total income of the company in relation to that part and as if the amount of dividends actually distributed and the distributable income were also similarly apportioned for the purposes of section 104 and this section;\".</p><p>[Finance (No. 2) Act, 1977]</p><p>© Copyright. Taxmann Publications Pvt. Ltd.</p>","words":334,"text_source":"published"},"classification":[],"instruments":[],"judgments":[],"corresponds_to":[],"url":"https://indiacode.ecourtsindia.com/finance-act-1977/section/21/","note":null,"source_note":"Harvested from the Income Tax Department's own portal at incometaxindia.gov.in, which publishes the Finance Acts section by section. India Code carries none of them: its Central community holds the Acts that stand as general law, and a Finance Act is an amending and rate-fixing instrument.","judgments_note":"Judgment holdings are the ratio decidendi as extracted from the order by eCourts India, reproduced unaltered. Reported judgments only.","licence":"Published with commentary and other original matter under s.52(1)(q)(ii), Copyright Act 1957."}