(3)This section applies to [an ] [Substituted by Act 10 of 2000, Section 38, for " any industrial undertaking" (w.e.f. 1.4.2000).][[undertaking] [ Substituted by Act 14 of 2001, Section 44, for " industrial undertaking" (w.e.f. 1.4.2002).][referred to in clause (ii) or ] [Substituted by Act 10 of 2000, Section 38, for " any industrial undertaking" (w.e.f. 1.4.2000).][* * *] [ The words " or clause (vi)" omitted by Act 33 of 2009, Section 36 (w.e.f. 1.4.2010).][ Inserted by Act 21 of 1998, Section 33 (w.e.f. 1.4.1999).] of sub-section (4) which fulfills all the following conditions, namely:-(i)it is not formed by splitting up, or the reconstruction, of a business already in existence:Provided that this condition shall not apply in respect of an [undertaking] [ Substituted by Act 23 of 2004, Section 17, for " undertaking referred to in clause (iv)" (w.e.f. 1.4.2005).] which is formed as a result of the re-establishment, re-construction or revival by the assessee of the business of any such [undertaking] [ Substituted by Act 23 of 2004, Section 17, for " undertaking referred to in clause (iv)" (w.e.f. 1.4.2005).] as is referred to in section 33-B, in the circumstances and within the period specified in that section;(ii)it is not formed by the transfer to a new business of machinery or plant previously used for any purpose:[Provided that nothing contained in this sub-section shall apply in the case of transfer, either in whole or in part, of machinery or plant previously used by a State Electricity Board referred to in clause (7) of section 2 of the Electricity Act, 2003 (36 of 2003), whether or not such transfer is in pursuance of the splitting up or reconstruction or reorganisation of the Board under Part XIII of that Act. ] [ Inserted by Act 23 of 2004, Section 17 (w.e.f. 1.4.2005).]Explanation 1. - For the purposes of clause (ii), any machinery or plant which was used outside India by any person other than the assessee shall not be regarded as machinery or plant previously used for any purpose, if the following conditions are fulfilled, namely:-(a)such machinery or plant was not, at any time previous to the date of the installation by the assessee, used in India;(b)such machinery or plant is imported into India from any country outside India; and(c)no deduction on account of depreciation in respect of such machinery or plant has been allowed or is allowable under the provisions of this Act in computing the total income of any person for any period prior to the date of the installation of machinery or plant by the assessee.Explanation 2. - Where in the case of an [undertaking] [ Substituted by Act 23 of 2004, Section 17, for " undertaking referred to in clause (iv)" (w.e.f. 1.4.2005).], any machinery or plant or any part thereof previously used for any purpose is transferred to a new business 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 (ii) of this sub-section, the condition specified therein shall be deemed to have been complied with.
