Section 40 in The Industrial Finance Corporation Act, 1948
40. Provision relating to income-tax and super-tax .-For the purposes of the Indian Income-tax Act, 1922 (11 of 1922), the Corporation shall be deemed to be a company within the meaning of that Act and shall be liable to income-tax and super-tax accordingly on its income, profits and gains:
Provided that any sum paid by the Central Government under the guarantee given in pursuance of section 5 or under any guarantee given in pursuance of sub-section (2) of section 21 [or sub-section (2) of section 27] shall not be treated as the income, profits and gains of the Corporation, and any interest on debentures or bonds [or on foreign currency borrowed under sub-section (1) of section 27] [Inserted by Act 78 of 1952, Section 28. ] paid by the Corporation out of such sum shall not be treated as expenditure incurred by it:Provided further that in the case of any shareholder, such portion of a dividend as has been paid out of any such sum advanced by the Central Government, shall be deemed to be his income from "interest on securities ", declared to be income-tax free within the meaning of section 8 of the said Act.[40-A. Delegation of powers.-The Board may, by general or special order, delegate to the Chairman][, Managing Director] [ Inserted by Act 50 of 1986, Section 20 (w.e.f. 2.2.1987).][or any officer of the Corporation, subject to such conditions and limitations, if any, as may be specified in the order, such of its powers and duties under this Act as it may deem necessary. ] [Inserted by Act 28 of 1955, Section 21 (w.e.f. 18.9.1955). ][40-B. Removal of difficulties .-(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the purposes of this Act as appear to it necessary or expedient for removing the difficulty.(2)An order under sub-section (1) may be made so as to have retrospective effect from a date not earlier than the date appointed under sub-section (1) of section 4-A.]
