Finance Act, 1996
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Amendment of section 255 (meaning of “industrial building or structure”) of Income Tax Act, 1967. |
29.— Section 255 of the Income Tax Act, 1967 , is hereby amended in subsection (1) by the insertion of the following additional proviso after the proviso to that subsection: | |
“Provided also that expenditure incurred by a person on or after the 23rd day of April, 1996, either on the construction of, or on the acquisition of the relevant interest in, a building or structure which is not situated in the State shall not be treated as expenditure on a building or structure within the meaning of this section unless, being a building or structure not situated in the State— | ||
(a) it is a building or structure which is to be constructed or which is in the course of construction and in respect of which it can be shown that— | ||
(i) the said person has either entered into a binding contract in writing for the acquisition of the site for the building or structure or has entered into an agreement in writing in relation to an option to acquire the said site on or before the 23rd day of April, 1996, and | ||
(ii) the said person has entered into a binding contract in writing for the construction of the building or structure on or before the 1st day of July, 1996, and | ||
(iii) the construction of the building or structure had commenced on or before the said 1st day of July and had been completed before the 31st day of December, 1997, | ||
and | ||
(b) it is a building or structure to be constructed or which is being constructed which will be used for the purposes of a trade the profits or gains from which are taxable in the State.”. |