(1)Where an assessee, being an Indian company or a person (other than a company) who is resident in India, incurs, after the 31st day of March, 1970, any expenditure specified in sub-section (2),-(i)before the commencement of his business, or(ii)after the commencement of his business, in connection with the extension of his [undertaking][or in connection with his setting up a new ] [Inserted by Act 42 of 1970, Section 8 (w.e.f. 1.4.1971).][unit] [ Substituted by Act 18 of 2008, Section 8, for " industrial unit" (w.e.f. 1.4.2009).],[the assessee shall, in accordance with and subject to the provisions of this section, be allowed a deduction of an amount equal to one-tenth of such expenditure for each of the ten successive previous years beginning with the previous year in which the business commences or, as the case may be, the previous year in which the extension of the ] [Inserted by Act 42 of 1970, Section 8 (w.e.f. 1.4.1971).][undertaking] [Substituted by Act 18 of 2008, Section 8, for " industrial undertaking" (w.e.f. 1.4.2009).] is completed or the new [unit] [ Substituted by Act 18 of 2008, Section 8, for " industrial unit" (w.e.f. 1.4.2009).] [commences production or operation:] [Inserted by Act 42 of 1970, Section 8 (w.e.f. 1.4.1971).][Provided that where an assessee incurs after the 31st day of March, 1998, any expenditure specified in sub-section (2), the provisions of this sub-section shall have effect as if for the words "an amount equal to one-tenth of such expenditure for each of the ten successive previous years", the words "an amount equal to one-fifth of such expenditure for each of the five successive previous years" had been substituted.] [ Inserted by Act 21 of 1998, Section 14 (w.e.f. 1.4.1999).]
