(1)Where an assessee, being an Indian company or a person (other than a company) resident in India, is engaged in the business of a hotel or of a tour operator, approved by the prescribed authority in this behalf or of a travel agent, there shall, in accordance with and subject to the provisions of this section, be allowed, ] [Substituted by Act 32 of 1985, Section 19, for Section 80-HHC (w.e.f. 1.4.1986).][in computing the total income of the assessee-(a)for an assessment year beginning on the 1st day of April, 2001, a deduction of a sum equal to the aggregate of-(i)forty per cent. of the profits derived by him from services provided to foreign tourists; and(ii)so much of the amount not exceeding forty per cent. of the profits referred to in sub-clause (i) as is debited to the profit and loss account of the previous year in respect of which the deduction is to be allowed and credited to a reserve account to be utilised for the purposes of the business of the assessee in the manner laid down in sub-section (4);(b)for an assessment year beginning on the 1st day of April, 2002, a deduction of a sum equal to the aggregate of-(i)thirty per cent. of the profits derived by him from services provided to foreign tourists; and(ii)so much of the amount not exceeding thirty per cent. of the profits referred to in sub-clause (i) as is debited to the profit and loss account of the previous year in respect of which the deduction is to be allowed and credited to a reserve account to be utilised for the purposes of the business of the assessee in the manner laid down in sub-section (4);(c)for an assessment year beginning on the 1st day of April, 2003, a deduction of a sum equal to the aggregate of-](i)[twenty-five per cent.] [ Substituted by Act 20 of 2002, Section 32, for certain words (w.e.f. 1.4.2003).][of the profits derived by him from services provided to foreign tourists; and [Substituted by Act 10 of 2000, Section 35, for certain words (w.e.f. 1.4.2001).](ii)so much of the amount not exceeding ] [twenty-five per cent.] [ Inserted by Act 3 of 1989, Section 16 (w.e.f. 1.4.1989).][of the profits referred to in sub-clause (i) as is debited to the profit and loss account of the previous year in respect of which the deduction is to be allowed and credited to a reserve account to be utilised for the purposes of the business of the assessee in the manner laid down in sub-section (4); [Substituted by Act 10 of 2000, Section 35, for certain words (w.e.f. 1.4.2001).](d)for an assessment year beginning on the 1st day of April, 2004, a deduction of a sum equal to the aggregate of-](i)[fifteen per cent.] [ Substituted by Act 20 of 2002, Section 32, for certain words (w.e.f. 1.4.2003).][of the profits derived by him from services provided to foreign tourists; and] [Substituted by Act 10 of 2000, Section 35, for certain words (w.e.f. 1.4.2001).](ii)[ so much of the amount not exceeding ] [Substituted by Act 10 of 2000, Section 35, for certain words (w.e.f. 1.4.2001).][fifteen per cent.] [ Substituted by Act 20 of 2002, Section 32, for certain words (w.e.f. 1.4.2003).][of the profits referred to in sub-clause (i) as is debited to the profit and loss account of the previous year in respect of which the deduction is to be allowed and credited to a reserve account to be utilised for the purposes of the business of the assessee in the manner laid down in sub-section (4), and no deduction shall be allowed in respect of the assessment year beginning on the 1st day of April, 2005 and any subsequent assessment year:] [Substituted by Act 10 of 2000, Section 35, for certain words (w.e.f. 1.4.2001).][Provided that a hotel or, as the case may be, a tour operator approved by the prescribed authority on or after the 30th day of November, 1989, and before the 1st day of October, 1991, shall be deemed to have been approved by the prescribed authority for the purposes of this section in relation to the assessment year commencing on the 1st day of April, 1989, or the 1st day of April, 1990, or, as the case may be, the 1st day of April, 1991, if the assessee was engaged in the business of such hotel or as such tour operator during the previous year relevant to any of the said assessment years.] [ Inserted by Act 49 of 1991, Section 29 (w.e.f. 1.10.1991).]
