(3)This section applies to a start-up which fulfils 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 a start-up which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such undertaking as referred to in section 33B, 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.Explanation 1. - For the purposes of this clause, 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 all 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;(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 the machinery or plant by the assessee.Explanation 2. - Where in the case of a start-up, 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.
