(2)This section applies to any industrial undertaking which fulfills all the following conditions, namely:-(i)it has begun or begins to manufacture or produce articles after the 31st day of December, 1970 ][but before the 1st day of April, 1990] [ Inserted by Act 12 of 1990, Section 20 (w.e.f. 1.4.1990).][, in any backward area; [Inserted by Act 26 of 1974, Section 9 (w.e.f. 1.4.1974).](ii)it is not formed by the splitting up, or the reconstruction, of a business already in existence in any backward area:Provided that this condition shall not apply in respect of any industrial undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such industrial undertaking as is referred to in section 33-B, in the circumstances and within the period specified in that section;(iii)it is not formed by the transfer to a new business of machinery or plant previously used for any purpose in any backward area;(iv)it employs ten or more workers in a manufacturing process carried on with the aid of power, or employs twenty or more workers in a manufacturing process carried on without the aid of power.Explanation. - Where any machinery or plant or any part thereof previously used for any purpose in any backward area is transferred to a new business in that area or in any other backward area and the total value of the machinery or plant or part so transferred does not exceed twenty per cent. of the total value of the machinery or plant used in the business then, for the purposes of clause (iii) of this sub-section, the condition specified therein shall be deemed to have been fulfilled.
