Section 80-IB l Profits and gains from certain industrial
under­takings other than infrastructure
development undertakings

574. Word “State” in sub-section (4) of section 80-IB includes Union Territories specified in Eighth Schedule

1. Sub-section (4) of section 80-IB of the Income-tax Act, 1961 provides for deduction in the case of an industrial undertaking in an industrially backward State specified in the Eighth Sched­ule of the Income-tax Act, 1961. The Eighth Schedule lists indus­trially backward States and Union Territories.

2. It has come to the notice of the Board that some of the field authorities are taking a restrictive view in interpreting section 80-IB(4) and are not allowing the benefit of the said section in respect of industrial undertakings situated in Union Territories specified in the Eighth Schedule in view of the fact that the said sub-section (4) mentions the word ‘State’ only.

3. The matter has been considered by the Board and it is clari­fied that the word ‘State’ in sub-section (4) of section 80-IB of the Income-tax Act, 1961 includes the Union Territories speci­fied in the Eighth Schedule of the Income-tax Act, 1961.

Circular: No. 788, dated 11-4-2000.

575. Notified industries in North-Eastern Region

In exercise of powers conferred by the second proviso to sub-section (4) of section 80-IB of the Income-tax Act, 1961 (43 of 1961), the Central Government, hereby notifies the following industries in the North-Eastern Region to be the industries for the purposes of said proviso, namely:—

Name of industries in the North-Eastern Region :

1. Fruit and Vegetable Processing industries manufacturing or producing—

  (i)  Canned or Bottled Products;

(ii)  Aseptic packaged Products;

(iii)  Frozen products;

(iv)  Dehydrated products;

(v)  Oleoresins.

2. Meat and Poultry Product industries manufacturing or produc­ing—

  (i)  Meat Products (buffalo, sheep, goat and pork);

(ii)  Poultry production;

(iii)  Egg Powered Plant.

3. Cereal Based Products industries manufacturing or producing—

  (i)  Maize Milling including starch and its derivatives;

(ii)  Bread Biscuits, Breakfast Cereals, etc.

4. Food and Beverage industries manufacturing or producing—

  (i)  Snacks;

(ii)  Non-alcoholic beverages;

(iii)  Confectionery including chocolate;

(iv)  Pasta Products;

(v)  Processed spices, etc.;

(vi)  Processed Pulses;

(vii) Tapioca Products.

5. Milk and Milk based Product industries manufacturing or pro­ducing—

  (i)  Milk Powder;

(ii)  Cheese;

(iii)  Butter/Ghee;

(iv)  Infant food;

(v)  Weaning Food;

(vi)  Malted Milk Food;

6. Food Packaging Industry

7. Paper Products Industry

8. Jute & Mesta Products Industry

9. Cattle/Poultry/Fishery Fee Products Industry

10. Edible Oil Processing/Vanaspati Industry

11. Processing of Essential oils and Fragrances Industry

12. Processing and Raising of Plantation Crops Industries manu­facturing or producing

Tea, Rubber, Coffee, Coconuts, etc.

13. Gas based Intermediate Products Industry manufacturing or producing—

  (i)  Gas exploration and Production;

(ii)  Gas Distribution and Bottling;

(iii)  Power Generation;

(iv)  Plastics;

(v)  Yarn Raw Materials;

(vi)  Fertilizers;

(vii) Methanol;

(viii)    Formaldehyde and FR Resin Melamine and MF Resin;

(ix)  Methylamine, Hexamethiene Tetranine, Ammonium Bi-Carbonate;

  (x)  Nitric Acid and Ammonium Nitrate;

(xi)  Carbon Black;

(xii) Polymer Chips;

14. Agro forestry based industry

15. Horticulture Industry

16. Mineral based industry

17. Floriculture Industry

18. Agro based industry

Notification : No. SO 627(E), dated 4-8-1999.

576. Notified backward districts

In exercise of powers conferred by sub-section (5) of section 80-IB of the Income-tax Act, 1961 (43 of 1961), and in supersession of the notification of the Government of India, in the Ministry of Finance, Department of Revenue (Central Board of Direct Taxes) number 714(E), dated 7th October, 1997, except as respects things done or omitted to be done before such supersession, the Central Government specifies the following districts as industrially backward districts of category ‘A’ and category ‘B’ under sub-section (5) of section 80-IB, read with rule 11EA, of the Income-tax Rules, 1962, namely :—

A. Category ‘A’ industrially backward districts :

   1.  Godda                           Bihar

   2.  Gumla                           Bihar

   3.  Araria                           Bihar

   4.  Gadchiroli                     Maharashtra

   5.  Madhepura                    Bihar

   6.  Sidharthanagar               Uttar Pradesh

   7.  Dumka                          Bihar

   8.  Mandla                          Madhya Pradesh

   9.  Khagaria                        Bihar

10.  Kishanganj                     Bihar

11.  Malda                           West Bengal

12.  Palamau                        Bihar

13.  Phulbani                        Orissa

14.  Madhubani                    Bihar

15.  Kalahandi                      Orissa

16.  Jehanabad                     Bihar

17.  Saharsa                         Bihar

18.  West Dinajpur                West Bengal

19.  Nawadah                       Bihar

20.  Bahraich                        Uttar Pradesh

21.  Sitamarhi                       Bihar

22.  Sahebganj                      Bihar

23.  Murshidabad                  West Bengal

24.  Cooch Behar                  West Bengal

25.  Bankura                        West Bengal

26.  Panna                           Madhya Pradesh

27.  Pratapgarh                     Uttar Pradesh

28.  Maharajganj                   Uttar Pradesh

29.  Jalore                            Rajasthan

30.  Aurangabad                   Bihar

31.  East Champaran             Bihar

32.  Banda                           Uttar Pradesh

33.  Barmer                          Rajasthan

34.  Purnia                           Bihar

35.  Bastar                           Madhya Pradesh

36.  Siwan                           Bihar

37.  Vaishali                         Bihar

38.  Basti                             Uttar Pradesh

39.  Sarguja                         Madhya Pradesh

40.  Chamoli                        Uttar Pradesh

41.  Jaisalmer                       Rajasthan

42.  Lohardagga                   Bihar

43.  Chhatarpur                    Madhya Pradesh

44.  Uttarkashi                      Uttar Pradesh

45.  Churu                           Rajasthan

46.  Wayanad                       Kerala

47.  Idukki                           Kerala

48.  Jalpaiguri                       West Bengal

49.  Almora                          Uttar Pradesh

50.  Pithoragarh                    Uttar Pradesh

51.  Tehri Garhwal               Uttar Pradesh

52.  The Dangs                    Gujarat

53.  Banswara                      Rajasthan

B. Category ‘B’ industrially backward districts :

   1.  Srikakulam                    Andhra Pradesh

   2.  Mahbubnagar                 Andhra Pradesh

   3.  Katiyar                          Bihar

   4.  Bhagalpur                      Bihar

   5.  Gopalganj                      Bihar

   6.  Darbhanga                     Bihar

   7.  West Champaran            Bihar

   8.  Saran                            Bihar

   9.  Bhojpur                         Bihar

10.  Samastipur                    Bihar

11.  Deoghar                        Bihar

12.  Nalanda                         Bihar

13.  Gaya                             Bihar

14.  Mazaffarpur                  Bihar

15.  Rohtas                          Bihar

16.  Banaskantha                  Gujarat

17.  Sabarkantha                   Gujarat

18.  Bidar                             Karnataka

19.  Seoni                            Madhya Pradesh

20.  Tikamgarh                     Madhya Pradesh

21.  Shivpuri                        Madhya Pradesh

22.  Balaghat                        Madhya Pradesh

23.  Jhabua                          Madhya Pradesh

24.  Sidhi                             Madhya Pradesh

25.  Vidisha                          Madhya Pradesh

26.  Raigarh                         Madhya Pradesh

27.  Morena                         Madhya Pradesh

28.  Betul                             Madhya Pradesh

29.  Rajgarh                         Madhya Pradesh

30.  Rajnandgaon                  Madhya Pradesh

31.  Sagar                            Madhya Pradesh

32.  Beed                             Maharashtra

33.  Bolangir                        Orissa

34.  Mayurbhanj                   Orissa

35.  Balasore                        Orissa

36.  Ganjam                         Orissa

37.  Dungarpur                     Rajasthan

38.  Dholpur                        Rajasthan

39.  Sawai Madhopur            Rajasthan

40.  Tonk                            Rajasthan

41.  Nagaur                          Rajasthan

42.  Jhalawar                       Rajasthan

43.  Sikar                             Rajasthan

44.  Hardoi                           Uttar Pradesh

45.  Lalitpur                         Uttar Pradesh

46.  Hamirpur                       Uttar Pradesh

47.  Badaun                          Uttar Pradesh

48.  Fatehpur                       Uttar Pradesh

49.  Azamgarh                      Uttar Pradesh

50.  Etah                              Uttar Pradesh

51.  Barabanki                      Uttar Pradesh

52.  Etawah                         Uttar Pradesh

53.  Deoria                           Uttar Pradesh

54.  Ghazipur                       Uttar Pradesh

55.  Ballia                             Uttar Pradesh

56.  Jaunpur                         Uttar Pradesh

57.  Sitapur                          Uttar Pradesh

58.  Jalaun                           Uttar Pradesh

59.  Unnao                           Uttar Pradesh

60.  Faizabad                        Uttar Pradesh

61.  Kanpur Dehat                Uttar Pradesh

62.  Mainpuri                       Uttar Pradesh

63.  Gonda                           Uttar Pradesh

64.  Farukhabad                   Uttar Pradesh

65.  Sultanpur                      Uttar Pradesh

66.  Mirzapur                       Uttar Pradesh

67.  Mau                              Uttar Pradesh

68.  Purulia                          West Bengal

69.  Birbhum                        West Bengal

70.  Midnapore                     West Bengal

Explanation : For the purpose of this notification, the districts correspond to the districts mentioned in the Report of the Study Group on Identification of Backward Districts dated the 4th October, 1994 and are based on districts as they stood in the Census Report of 1991. Where a district specified as an industri­ally backward district for the purposes of section 80-IB is reorganised, either by split or otherwise, after the Census Report of 1991, all the areas comprised in the district as it existed in the Census Report of 1991 will qualify for the purpose of this rule.

2. This notification shall apply for the previous year relevant to the assessment year commencing on the 1st day of April, 2000 and subsequent assessment years.

Notification : No. SO 440(E), dated 15-6-1999.

577. Notified areas falling outside local limits of municipality or cantonment board

In exercise of powers conferred by clause (f) of sub-section (14) of section 80-IB of the Income-tax Act, 1961 (43 of 1961), the Central Government, having regard to the stage of development of such area including the extent of and scope for, urbanisation of such area and other relevant consideration specifies the areas shown in column (3) of the Schedule below and falling outside the local limits of the municipality or cantonment board, as the case may be, shown in the corresponding entry in column (2) thereof, for the purposes of the said section, namely :

Schedule

Sl. No.

Name of the municipality or cantonment board

Details of the area

(1)

(2)

(3)

1.

Mumbai, Calcutta, Delhi, Hyderabad, Chennai and New Delhi

Areas up to a distance of 15 kilo-meters in all directions from the municipal limits, or, as the case may be, cantonment limits.

2.

Ahmedabad, Bangalore, Kanpur, Lucknow, Nagpur and Pune

Areas up to a distance of 12 kilo-meters in all directions from the municipal limits, or, as the case may be, cantonment limits.

3.

Agra, Allahabad, Amritsar, Bhopal, Cochin, Coimbatore,   Dhanbad, Gwalior, Indore, Jabalpur, Jaipur, Jamshedpur, Ludhiana, Madurai, Patna, Salem, Sholapur, Srinagar, Surat, Tiruchirapally, Trivandrum, Varanasi (Benaras) and Vadodara (Baroda)

Areas up to a dis­tance of 10 kilo-meters in all direc­tions from the municipal limits, or, as the case may be, cantonment limits.

4.

Any other municipality or cantonment board

Areas up to 8 kilome­ters in all directions from the munici­pal limits, or as the case may be, cantonment limits.

2. It shall come into force on the 1st day of April, 2000.

Notification : No. SO 1013(E), dated 6-10-1999.