Amendment of section 35AD

In force Act 25 of 2014 As on 06 Oct 2026

Act 25 of 2014 Ministry Finance Cited by 2 provisions

Section 12 of the Finance Act, 2014 deals with amendment of section 35AD. Amendment of section 35AD. 12. In section 35AD of the Income-tax Act, with effect from the 1st day of April, 2015,— (a) | in sub-section (3), after the words "no deduction shall be allowed under the provisions of", the words, figures and letters "section 10AA and" shall be inserted;

Amendment of section 35AD.
12. In section 35AD of the Income-tax Act, with effect from the 1st day of April, 2015,—
(a) in sub-section (3), after the words "no deduction shall be allowed under the provisions of", the words, figures and letters "section 10AA and" shall be inserted;
(b) in sub-section (5),—
(i) in clause (ah), the word "and" occurring at the end, shall be omitted;
(ii) after clause (ah), the following clauses shall be inserted, namely:—
"(ai) on or after the 1st day of April, 2014, where the specified business is in the nature of laying and operating a slurry pipeline for the transportation of iron ore;
(aj) on or after the 1st day of April, 2014, where the specified business is in the nature of setting up and operating a semi-conductor wafer fabrication manufacturing unit, and which is notified by the Board in accordance with such guidelines as may be prescribed; and";
(c) after sub-section (7), the following sub-sections shall be inserted, namely:—
'(7A) Any asset in respect of which a deduction is claimed and allowed under this section shall be used only for the specified business, for a period of eight years beginning with the previous year in which such asset is acquired or constructed.
(7B) Where any asset, in respect of which a deduction is claimed and allowed under this section, is used for a purpose other than the specified business during the period specified in sub-section (7A), otherwise than by way of a mode referred to in clause (vii) of section 28, the total amount of deduction so claimed and allowed in one or more previous years, as reduced by the amount of depreciation allowable in accordance with the provisions of section 32, as if no deduction under this section was allowed, shall be deemed to be the income of the assessee chargeable under the head "Profits and gains of business or profession" of the previous year in which the asset is so used.
(7C) Nothing contained in sub-section (7B) shall apply to a company which has become a sick industrial company under sub-section (1) of section 17 of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986), during the period specified in sub-section (7A).';
(d) in sub-section (8), in clause (c), after sub-clause (xi), the following sub-clauses shall be inserted, namely:—
"(xii) laying and operating a slurry pipeline for the transportation of iron ore;
(xiii) setting up and operating a semi-conductor wafer fabrication manufacturing unit notified by the Board in accordance with such guidelines as may be prescribed;".
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Section 12, The Finance Act, 2014 (Act 25 of 2014).

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Questions about Section 12

What does Section 12 of the Finance Act deal with?

Section 12 of the Finance Act is headed "Amendment of section 35AD". Amendment of section 35AD. 12. In section 35AD of the Income-tax Act, with effect from the 1st day of April, 2015,— (a) | in sub-section (3), after the words "no deduction shall be allowed under the provisions of", the words, figures and letters "section 10AA and" shall be inserted;

How do I find court cases under Section 12 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 2014 12, section 12 Finance Act 2014, section 12 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 12 of the Finance Act, and has it changed?

Its own text turns on section 28 (Amendment of section 80CCD), section 32 (Amendment of section 92C), Income-tax Act 35AD (Deduction in respect of expenditure on specified business), so none of them can safely be read on its own. 2 other provisions in this corpus refer back to it.

When was the Finance Act enacted?

Finance Act was enacted in 2014 as Act 25 of 2014. 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

First Schedule. THE FIRST SCHEDULE7973 words
2. Income-tax3522 words
114. Amendment of Act 32 of 19941078 words
3. Amendment of section 21041 words
Seventh Schedule. THE SEVENTH SCHEDULE908 words
76. Substitution of new section for section 285BA878 words

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(a)		in sub-section (3), after the words "no deduction shall be allowed under the provisions of", the words, figures and letters "section 10AA and" shall be inserted;
(b)		in sub-section (5),—

(i)		in clause (ah), the word "and" occurring at the end, shall be omitted;
(ii)		after clause (ah), the following clauses shall be inserted, namely:—

"(ai)		on or after the 1st day of April, 2014, where the specified business is in the nature of laying and operating a slurry pipeline for the transportation of iron ore;
(aj)		on or after the 1st day of April, 2014, where the specified business is in the nature of setting up and operating a semi-conductor wafer fabrication manufacturing unit, and which is notified by the Board in accordance with such guidelines as may be prescribed; and";

(c)		after sub-section (7), the following sub-sections shall be inserted, namely:—
		'(7A) Any asset in respect of which a deduction is claimed and allowed under this section shall be used only for the specified business, for a period of eight years beginning with the previous year in which such asset is acquired or constructed.
		(7B) Where any asset, in respect of which a deduction is claimed and allowed under this section, is used for a purpose other than the specified business during the period specified in sub-section (7A), otherwise than by way of a mode referred to in clause (vii) of section 28, the total amount of deduction so claimed and allowed in one or more previous years, as reduced by the amount of depreciation allowable in accordance with the provisions of section 32, as if no deduction under this section was allowed, shall be deemed to be the income of the assessee chargeable under the head "Profits and gains of business or profession" of the previous year in which the asset is so used.
		(7C) Nothing contained in sub-section (7B) shall apply to a company which has become a sick industrial company under sub-section (1) of section 17 of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986), during the period specified in sub-section (7A).';
(d)		in sub-section (8), in clause (c), after sub-clause (xi), the following sub-clauses shall be inserted, namely:—

"(xii)		laying and operating a slurry pipeline for the transportation of iron ore;
(xiii)		setting up and operating a semi-conductor wafer fabrication manufacturing unit notified by the Board in accordance with such guidelines as may be prescribed;".