# The Finance Act, 1977, Section 20: Amendment of section 104

- Act: The Finance Act, 1977 (Act 11 of 1977)
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-1977/section/20/

## Text

Amendment of section 104 20. In section 104 of the Income-tax Act, for sub-section (4), the following sub-section and Explanation shall be substituted with effect from the 1st day of April, 1978, namely: — "(4) Without prejudice to the provisions of section 108, nothing contained in this section shall apply to— (a) an Indian company whose business consists mainly in the construction of ships or 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) a company which is neither an Indian company nor a company which has made the prescribed arrangements for the declaration and payment of dividends within India. Explanation.—For the purposes of clause (a) of this sub-section, the business of a company shall be deemed to consist mainly in the construction of ships or 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 gross total income for the relevant previous year is not less than fifty-one per cent of such total income". [Finance (No. 2) Act, 1977] © Copyright. Taxmann Publications Pvt. Ltd.

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