(1)In the case of an assessee, being [a Government company or] [Inserted by Act 21 of 1998, Section 10 (w.e.f. 1.4.1999).][a public company formed and registered in India with the main object of carrying on the business of operation of ships, there shall, in accordance with and subject to the provisions of this section, be allowed a deduction of an amount not exceeding fifty per cent. of profits derived from the business of operation of ships (computed under the head "Profits and gains of business or profession" and before making any deduction under this section), as is debited to the profit and loss account of the previous year in respect of which the deduction is to be allowed and credited to a reserve account, to be utilised in the manner laid down in sub-section (2):] [Inserted by Act 36 of 1989, Section 5 (w.e.f. 1.4.1990).][Provided that where the aggregate of the amounts carried to such reserve account from time to time exceeds twice the aggregate of the amounts of the paid-up share capital, the general reserves and amount credited to the share premium account of the assessee, no allowance under this sub-section shall be made in respect of such excess:] [ Substituted by Act 20 of 2002, Section 15, for the first proviso (w.e.f. 1.4.2003).][Provided further that for five assessment years commencing on or after the 1st day of April, 2001 and ending before the 1st day of April, 2006, the provisions of this sub-section shall have effect as if for the words "an amount not exceeding fifty per cent. of profits", the words "an amount not exceeding the profits" had been substituted:] [ Inserted by Act 10 of 2000, Section 15 (w.e.f. 1.4.2001).][Provided also that no deduction shall be allowed under this section for any assessment year commencing on or after the 1st day of April, 2005.] [ Inserted by Act 23 of 2004, Section 9 (w.e.f. 1.4.2005).]
