(2)[ This section applies to any industrial undertaking which fulfills all the following conditions, namely:-(i)it is not formed by the splitting up, or the reconstruction, of a business already in existence;(ii)it is not formed by the transfer to a new business of machinery or plant previously used for any purpose;(iii)it manufactures or produces any article or thing, not being any article or thing specified in the list in the Eleventh Schedule, or operates one or more cold storage plant or plants, in any part of India, and begins to manufacture or produce articles or things or to operate such plant or plants, at any time within the period of ] [ten years] [ Substituted by Act 49 of 1991, Section 31, for " fourteen years" (w.e.f. 1.4.1991).][next following the 31st day of March, 1981, or such further period as the Central Government may, by notification in the Official Gazette, specify with reference to any particular industrial undertaking; [Inserted by Act 44 of 1980, Section 16 (w.e.f. 1.4.1981).](iv)in a case where the industrial undertaking manufactures or produces articles or things, the undertaking employes ten or more workers in a manufacturing process carried on with the aid of power, or employes twenty or more workers in a manufacturing process carried on without the aid of power:Provided that the condition in clause (i) shall not apply in respect of any industrial undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such industrial undertaking as is referred to in section 33-B, in the circumstances and within the period specified in that section:Provided further that the condition in clause (iii) shall, in relation to a small-scale industrial undertaking, apply as if the words, "not being any article or thing specified in the list in the Eleventh Schedule" had been omitted.Explanation 1. - For the purposes of clause (ii) of this sub-section, 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 the machinery or plant by the assessee.Explanation 2. - Where in the case of an industrial undertaking, 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.Explanation 3. -For the purposes of this sub-section, "small-scale industrial undertaking" shall have the same meaning as in clause (b) of the Explanation below sub-section (8) of section 80-HHA.
