CHAPTER VIA — DEDUCTIONS TO BE MADE IN COMPUTING TOTAL INCOME
Case Laws & Commentary
SECTION 80J — DEDUCTION FOR NEW INDUSTRIAL UNDERTAKINGS, SHIPS AND HOTELS (OMITTED)
Omitted-Section Note (Income-tax Act, 1961 as amended by Finance Act, 2026)
STATUS — OMITTED PROVISION
Section 80J of the Income-tax Act, 1961 stands OMITTED and is not in force for any current assessment year. This note records the omission for completeness of the Chapter VIA series.
BARE-ACT ENTRY (verbatim, Income-tax Act, 1961 as amended by Finance Act, 2025)
80J. [Omitted by the Finance (No. 2) Act, 1996, w.r.e.f. 1-4-1989.]
A. HISTORICAL NOTE
Section 80J was the principal 'tax-holiday' provision for the profits and gains of newly established industrial undertakings, ships and approved hotel businesses, computed on a percentage of the capital employed. It generated extensive litigation, most importantly Lohia Machines Ltd. v. Union of India (1985) 152 ITR 308 (SC) on the validity of Rule 19A and the exclusion of borrowed capital in computing capital employed.
It ceased to apply to new undertakings after the 1988-89 changes and was formally omitted by the Finance (No. 2) Act, 1996 with retrospective effect from 1 April 1989. Its successor incentive structure is the section 80-IA / 80-IB family of deductions.
B. CASE LAW
The provision stands omitted and confers no deduction for any current assessment year. No case law is digested. Decisions rendered under it survive only as historical authority and for reassessment of years in which it was in force.
Editorial note on sourcing
Bare-Act omission entry reproduced verbatim from the Income-tax Act, 1961 as amended by the Finance Act, 2025 (no Finance Act, 2026 change affects an already-omitted provision). Insertion/omission history stated from the bare-Act footnote. No case law is digested for an omitted provision; any historical authority is noted only for context.
Case Laws & Commentary
SECTION 80J — DEDUCTION FOR NEW INDUSTRIAL UNDERTAKINGS, SHIPS AND HOTELS (OMITTED)
Omitted-Section Note (Income-tax Act, 1961 as amended by Finance Act, 2026)
STATUS — OMITTED PROVISION
Section 80J of the Income-tax Act, 1961 stands OMITTED and is not in force for any current assessment year. This note records the omission for completeness of the Chapter VIA series.
BARE-ACT ENTRY (verbatim, Income-tax Act, 1961 as amended by Finance Act, 2025)
80J. [Omitted by the Finance (No. 2) Act, 1996, w.r.e.f. 1-4-1989.]
A. HISTORICAL NOTE
Section 80J was the principal 'tax-holiday' provision for the profits and gains of newly established industrial undertakings, ships and approved hotel businesses, computed on a percentage of the capital employed. It generated extensive litigation, most importantly Lohia Machines Ltd. v. Union of India (1985) 152 ITR 308 (SC) on the validity of Rule 19A and the exclusion of borrowed capital in computing capital employed.
It ceased to apply to new undertakings after the 1988-89 changes and was formally omitted by the Finance (No. 2) Act, 1996 with retrospective effect from 1 April 1989. Its successor incentive structure is the section 80-IA / 80-IB family of deductions.
B. CASE LAW
The provision stands omitted and confers no deduction for any current assessment year. No case law is digested. Decisions rendered under it survive only as historical authority and for reassessment of years in which it was in force.
Editorial note on sourcing
Bare-Act omission entry reproduced verbatim from the Income-tax Act, 1961 as amended by the Finance Act, 2025 (no Finance Act, 2026 change affects an already-omitted provision). Insertion/omission history stated from the bare-Act footnote. No case law is digested for an omitted provision; any historical authority is noted only for context.