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Section3
The Finance Act, 1997

Amendment of section 10

In force As on 05 Oct 2026

Ministry Finance Cited by 1 provision

Section 3 of the Finance Act, 1997 deals with amendment of section 10. CHAPTER III DIRECT TAXES Income-tax Amendment of section 10.

CHAPTER III

DIRECT TAXES

Income-tax

Amendment of section 10.

3. In section 10 of the Income-tax Act, with effect from the 1st day of April, 1998,—

(a) after clause (6B), the following clause shall be inserted, namely :—

"(6BB) where in the case of the Government of a foreign State or a foreign enterprise deriving income from an Indian company engaged in the business of operation of aircraft, as a consideration of acquiring an aircraft or an aircraft engine (other than payment for providing spares, facilities or services in connection with the operation of leased aircraft) on lease under an agreement entered after the 31st day of March, 1997 and approved by the Central Government in this behalf and the tax on such income is payable by such Indian company under the terms of that agreement to the Central Government, the tax so paid.

Explanation.—For the purposes of this clause, the expression "foreign enterprise" means a person who is a non-resident;";

(b) in clause (15), in sub-clause (iv), after item (i), in the Explanation, after clause (b), the following clause shall be inserted, namely :—

"(ba) the business of providing telecommunication services; or";

(c) in clause (15A), after the words "under an agreement", the words, letters and figures "entered before the 1st day of April, 1997 and" shall be inserted;

(d) in clause (17), in sub-clause (iii), for the words "six hundred rupees per month", the words "two thousand rupees per month" shall be substituted;

(e) in clause (23F), in the Explanation, in clause (c), for the words "engaged in the", the words "engaged in the business of generation or generation and distribution of electricity or any other form of power or business of providing telecommunication services or in the" shall be substituted;

(f) in clause (23G),—

(i) the words, letters, brackets and figures "which fulfils the conditions specified in sub-section (4A) of section 80-IA" shall be omitted;

(ii) in the Explanation, for clause (c), the following clause shall be substituted, namely :—

‘(c) "infrastructure facility" means—

(i) a road, highway, bridge, airport, port, rail system or any other public facility of a similar nature as may be notified by the Board in this behalf in the Official Gazette which fulfils the conditions specified in sub-section (4A) of section 80-IA;

(ii) a water supply project, irrigation project, sanitation and sewerage system which fulfils the conditions specified in sub-section (4A) of section 80-IA;

(iii) a project for generation or generation and distribution of electricity or any other form of power where such project starts generating power on or after 1st day of April, 1993;

(iv) a project for providing telecommunication services on or after the 1st day of April, 1995;’;

(g) clauses (26AA) and (28) shall be omitted;

(h) after clause (32), the following clause shall be in­serted, namely:—

"(33) any income by way of dividends referred to in section 115-O.".

© Copyright. Taxmann Publications Pvt. Ltd.

Section 3, The Finance Act, 1997.

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

This section refers to

  1. s. 10 Amendment of section 44AA
  2. Income-tax Act s. 10 Incomes not included in total income

Referred to by 1

  1. s. 16 Amendment of section 47

Related judgements & precedents

These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.

  1. Commnr. of Cent. Excise & Customs vs Venus Castings P. LTD

    Supreme Court of India 05 Apr 2000 Binding (Supreme Court)

    Court's Decision & Legal Precedent

    A manufacturer who has exercised the option to make payment of duty based on total furnace capacity installed in the factory under Rule 96ZO(3) of the Central Excise Rules cannot subsequently claim the benefit of determination and re-determination of actual production capacity under Section 3A(4) of the Central Excise Act, 1944, as the composition scheme under Rule 96ZO(3) and the regular assessment procedure under Section 3A(4) are two alternative optional procedures mutually exclusive in nature, and once an assessee elects one scheme, he must accept both its advantages and disadvantages without claiming hybrid benefits. The explicit exclusion of Section 3A(4) in Rule 96ZO(3) is valid, not ultra vires, and consonant with the statutory scheme.

    On this section: Legislative context indicating the intention to address evasion in sectors like induction furnaces and steel mills through capacity-based assessment

    Read the full order on eCourts India

The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.

Questions about Section 3

What have the courts held on Section 3 of the Finance Act?

Commnr. of Cent. Excise & Customs vs Venus Castings P. LTD (05 Apr 2000) is the leading judgment on this section among those set out below: Legislative context indicating the intention to address evasion in sectors like induction furnaces and steel mills through capacity-based assessment.

How do I find court cases under Section 3 of the Finance Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act 1997 3, section 3 Finance Act 1997, section 3 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Commnr. of Cent. Excise & Customs vs Venus Castings P. LTD (05 Apr 2000).

What should I read with Section 3 of the Finance Act, and has it changed?

Its own text turns on section 10 (Amendment of section 44AA), Income-tax Act 10 (Incomes not included in total income), so none of them can safely be read on its own. 1 other provision in this corpus refers back to it.

When was the Finance Act enacted?

Finance Act was enacted in 1997. India Code records no commencement date for it. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. 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. This page is not a substitute for legal advice.