Amendment of section 80 HHD

Section 29 of the Finance Act, 1991 deals with amendment of section 80 HHD. Amendment of section 80 HHD. 29. In section 80HHD of the Income-tax Act,— (a) in sub-section (1), the following proviso shall be inserted at the end, with effect from the 1st day of October, 1991, namely: — "Provided that a hotel or, as the case may be, a tour operator approved by the prescribed aut

Amendment of section 80 HHD.

29. In section 80HHD of the Income-tax Act,—

(a) in sub-section (1), the following proviso shall be inserted at the end, with effect from the 1st day of October, 1991, namely: —

"Provided that a hotel or, as the case may be, a tour operator approved by the prescribed authority on or after the 30th day of November, 1989 and before the 1st day of October, 1991, shall be deemed to have been approved by the prescribed authority for the purposes of this section in relation to the assessment year commencing on the 1st day of April, 1989 or the 1st day of April, 1990 or, as the case may be, the 1st day of April, 1991 if the assessee was engaged in the business of such hotel or as such tour operator during the previous year relevant to any of the said assessment years.";

(b) in sub-section (2), the following Explanation shall be inserted at the end, with effect from the 1st day of April, 1992, namely:—

"Explanation.—For the purposes of this sub-section, any payment received by an assessee, engaged in the business of a hotel or of a tour operator or of a travel agent, in Indian currency obtained by conversion of foreign exchange brought into India through an authorised dealer, from a tour operator or, as the case may be, a travel agent on behalf of a foreign tourist or group of foreign tourists, shall be deemed to have been received by the assessee in convertible foreign exchange if the person making the payment furnishes to the assessee a certificate specified in sub-section (2A).";

(c) after sub-section (2), the following sub-section shall be inserted, with effect from the 1st day of April, 1992, namely: —

" (2A) Every person making payment to an assessee referred to in the Explanation to sub-section (2) out of Indian currency obtained by conversion of foreign exchange received from or on behalf of a foreign tourist or a group of foreign tourists shall furnish to that assessee a certificate in the prescribed form indicating the amount received in foreign exchange, its conversion into Indian currency and such other particulars as may be prescribed.";

(d) in sub-section (6), for the words "amount of convertible foreign exchange received by the assessee for services provided by him to the foreign tourist", the following shall, be substituted, with effect from the 1st day of April, 1992, namely:—

"aggregate of. the amount of convertible foreign exchange received by the assessee for services provided by him to foreign tourists and the payments received by him in Indian currency as referred to in the Explanation to sub-section (2)";

(e) in the Explanation, after clause (c), the following clause shall be inserted, with effect from the 1st day of April, 1992, namely:—

'(d) "authorised dealer", "foreign exchange" and "Indian currency" shall have the meanings respectively assigned to them in clauses (b), (h) and (k) of section 2 of the Foreign Exchange Regulation Act, 1973 (46 of 1973).'.

[Finance (No.

2) Act, 1991]

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Section 29, The Finance Act, 1991 (Act 49 of 1991).