- In section 36 of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 2016, -(a)in clause (iii), in the proviso, the words "for extension of existing business or profession" shall be omitted;(b)in clause (vii), after the proviso, the following proviso shall be inserted, namely: -"Provided further that where the amount of such debt or part thereof has been taken into account in computing the income of the assessee of the previous year in which the amount of such debt or part thereof becomes irrecoverable or of an earlier previous year on the basis of income computation and disclosure standards notified under sub-section (2) of section 145 without recording the same in the accounts, then, such debt or part thereof shall be allowed in the previous year in which such debt or part thereof becomes irrecoverable and it shall be deemed that such debt or part thereof has been written off as irrecoverable in the accounts for the purposes of this clause.";(c)after clause (xvi), the following clause shall be inserted, namely: -"(xvii) the amount of expenditure incurred by a co-operative society engaged in the business of manufacture of sugar for purchase of sugarcane at a price which is equal to or less than the price fixed or approved by the Government.".
