(1)Notwithstanding anything contained in any other provision of this Act, where in the case of an assessee being a company [(other than a company engaged in the business of generation or distribution of electricity), the total income, as computed under this Act in respect of any previous year relevant to the assessment year commencing on or after the 1st day of April, 1988 ] [Inserted by Act 3 of 1989, Section 19 (w.e.f. 1.4.1989).][but before the 1st day of April, 1991] [ Inserted by Act 12 of 1990, Section 32 (w.r.e.f. 1.4.1990).][(hereafter in this section referred to as the relevant previous year), is less than thirty per cent. of its book profit, the total income of such assessee chargeable to tax for the relevant previous year shall be deemed to be an amount equal to thirty per cent. of such book profit.] [Inserted by Act 3 of 1989, Section 19 (w.e.f. 1.4.1989).][(1-A) Every assessee, being a company, shall, for the purposes of this section, prepare its profit and loss account for the relevant previous year in accordance with the provisions of Parts II and III of Schedule VI to the Companies Act, 1956 (1 of 1956).] [ Inserted by Act 13 of 1989, Section 19 (w.r.e.f. 1.4.1989).]Explanation. - For the purposes of this section, "book profit" means the net profit as shown in the profit and loss account for the relevant previous year [prepared under sub-section (1-A)] [ Substituted by Act 13 of 1989, Section 19, for certain words (w.r.e.f. 1.4.1989).], as increased by-(a)the amount of income-tax paid or payable, and the provision therefor; or(b)the amounts carried to any reserves [(other than the reserves specified in section 80-HHD)] [ Inserted by Act 3 of 1989, Section 19 (w.e.f. 1.4.1989).] [or sub-section (1) of section 33-AC)] [ Inserted by Act 36 of 1989, Section 12 (w.e.f. 1.4.1990).], by whatever name called; or(c)the amount or amounts set aside to provisions made for meeting liabilities, other than ascertained liabilities; or(d)the amount by way of provision for losses of subsidiary companies; or(e)the amount or amounts of dividends paid or proposed; or(f)the amount or amounts of expenditure relatable to any income to which any of the provisions of Chapter III [applies; or] [ Substituted by Act 3 of 1989, Section 19, for certain words (w.e.f. 1.4.1989).](g)[ the amount withdrawn from the reserve account under section 80-HHD, where it has been utilised for any purpose other than those referred to in sub-section (4) of that section; or [ Inserted by Act 3 of 1989, Section 19 (w.e.f. 1.4.1989).](h)the amount credited to the reserve account under section 80-HHD, to the extent that amount has not been utilised within the period specified in sub-section (4) of that section; or](ha)[ the amount deemed to be the profits under sub-section (3) of section 33-AC,] [ Inserted by Act 36 of 1989, Section 12 (w.e.f. 1.4.1990).][if any amount referred to in clauses (a) to (f) is debited or, as the case may be, the amount referred to in clauses (g) and (h) is not credited] [ Substituted by Act 3 of 1989, Section 19, for certain words (w.e.f. 1.4.1989).] to the profit and loss account, and as reduced by,-(i)the amount withdrawn from reserves [(other than the reserves specified in section 80-HHD)] [ Inserted by Act 3 of 1989, Section 19 (w.e.f. 1.4.1989).] or provisions, if any such amount is credited to the [profit and loss account: [ Substituted by Act 13 of 1989, Section 19, for certain words (w.r.e.f. 1.4.1988).]Provided that, where this section is applicable to an assessee in any previous year (including the relevant previous year), the amount withdrawn from reserves created or provisions made in a previous year relevant to the assessment year commencing on or after the 1st day of April, 1988 shall not be reduced from the book profit unless the book profit of such year has been increased by those reserves or provisions (out of which the said amount was withdrawn) under this Explanation; or](ii)the amount of income to which any of the provisions of Chapter III applies, if any such amount is credited to the profit and loss account; or(iii)[ the amounts as arrived at after increasing the net profit by the amounts referred to in clauses (a) to (f) and reducing the net profit by the amounts referred to in clauses (i) and (ii) attributable to the business, the profits from which are eligible for deduction under section 80-HHC or section 80-HHD; so, however, that such amounts are computed in the manner specified in sub-section (3) or sub-section (3-A) of section 80-HHC or sub-section (3) of section 80-HHD, as the case may be; or] [ Inserted by Act 3 of 1989, Section 19 (w.e.f. 1.4.1989).](iv)[] [ Clause (iii) renumbered as Clause (iv) by Act 3 of 1989, Section 19 (w.e.f. 1.4.1989).] the amount of the loss or the amount of depreciation which would be required to be set off against the profit of the relevant previous year as if the provisions of clause (b) of the first proviso to sub-section (1) of section 205 of the Companies Act, 1956 (1 of 1956), are applicable.
