Section 2 in The Taxation Laws (Amendment) Act, 2003
2. Amendment of section 10.-
In section 10 of the Income- tax Act, 1961 (43 of 1961 ) (hereafter in this Chapter referred to as the Income- tax Act), in clause (15),-(A) after sub- clause (iiia), the following sub- clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2001 , namely:-" (iiib) interest payable to the Nordic Investment Bank, being a multilateral financial institution constituted by the Governments of Denmark, Finland, Iceland, Norway and Sweden, on a loan advanced by it to a project approved by the Central Government in terms of the Memorandum of Understanding entered into by the Central Government with that Bank on the 25th day of November, 1986 ;";(B)in sub- clause (iv),-(a) in item (c), the existing Explanation shall be numbered as Explanation 1 thereof and after Explanation 1 as so numbered, the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1962 , namely:-" Explanation 2.-For the removal of doubts, it is hereby declared that the usance interest payable outside India by an undertaking engaged in the business of ship- breaking in respect of purchase of a ship from outside India shall be deemed to be the interest payable on a debt incurred in a foreign country in respect of the purchase outside India;";(b)in the Explanation 1 occurring below item (i), after clause (d), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1991 , namely:-" (da) the business of ship- breaking; or".
