Unlocking Tax Benefits Under THE FOURTEENTH SCHEDULE section 80-IC(2) of Income Tax Act 1961

THE FOURTEENTH SCHEDULE section 80-IC(2) of Income Tax Act 1961, of Income Tax Act, 1961 states that

1. Fruit and Vegetable Processing industries manufacturing or producing—

   (i) Canned or bottled products;

  (ii) Aseptic packaged products;

 (iii) Frozen products;

 (iv) De-hydrated 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 Powder Plant.

 3. Cereal Based Product industries manufacturing or producing—

   (i) Maize Milling including starch and its derivatives;

  (ii) Bread, Biscuits, Breakfast Cereal.

 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 and mesta products industry.

  9. Cattle or poultry or fishery feed products industry.

 10. Edible Oil processing or vanaspati industry.

 11. Processing of essential oils and fragrances industry.

 12. Processing and raising of plantation crops—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, Hexamethylene tetramine, 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.

PART B

FOR THE STATE OF SIKKIM

S. No.		Activity or article or thing or operation
1.		Eco-Tourism including Hotels, Resorts, Spa, Amusement Parks and Ropeways.
2.		Handicrafts and handlooms.
3.		Wool and silk reeling, weaving and processing, printing, etc.
4.		Floriculture.
5.		Precision Engineering including watch making.
6.		Electronics including computronics hardware and software and Information Technology (IT) related industries.
7.		Food processing including Agro-based industries. Processing, preservation and packaging of fruits and vegetables (excluding conventional grinding/extraction units).
8.		Medicinal and aromatic Herbs—Plantation and Processing.
9.		Raising and processing of plantation crops, i.e., tea, oranges and carda-mom.
10.		Mineral based industry.
11.		Pharma products.
12.		Honey.
13.		Biotechnology.

PART C

FOR THE STATE OF HIMACHAL PRADESH AND THE STATE OF UTTARANCHAL

S. No.		Activity or article or thing or operation		4/6 digit excise classification		Sub-class under NIC classification on 1998		ITC(HS) classification 4/6 digit
1.		Floriculture		–		–		0603 or 060120 or 06029020 or 06024000
2.		Medicinal herbs and aromatic herbs, etc., processing		–		–
3.		Honey		–		–		040900
4.		Horticulture and agro-based industries such as
		(a) Sauces, ketchup, etc.		21.03		15135 to 15137 and 15139
		(b) Fruit juices and fruit pulp		2202.40
		(c) Jams, jellies, vegetable juices, puree, pickles, etc.		20.01
		(d) Preserved fruits and vegetables
		(e) Processing of fresh fruits and vegetables including packaging
		(f) Processing, preservation, packaging of mushrooms
5.		Food Processing Industry excluding those included in the Thirteenth Schedule		19.01 to 19.04
6.		Sugar and its by-products		–		–		17019100
7.		Silk and silk products		50.04 50.05		17116
8.		Wool and wool products		51.01 to 51.12		17117
9.		Woven fabrics (Excisable garments)		–		–		6101 to 6117
10.		Sports goods and articles and equipment for general physical exercise and equipment for adventure sports/activities, tourism (to be specified, by notification, by the Central Government)		9506.00
11.		Paper and paper products excluding those in the Thirteenth Schedule (as per excise classification)
12.		Pharma products		30.03 to 30.05
13.		Information and Communication Technology Industry, Computer hardware, Call Centres		84.71		30006/7
14.		Bottling of mineral water		2201
15.		Eco-tourism including hotels, resorts, spa, entertainment/ amusement parks and ropeways		–		55101
16.		Industrial gases (based on atmospheric fraction)
17.		Handicrafts
18.		Non-timber forest product-based industries.

VALIDATION PROVISIONS

SECTION 119 OF FINANCE ACT, 2012¹

Validation of demands, etc., under Income-tax Act, 1961 in certain cases.

119. Notwithstanding anything contained in any judgment, decree or order of any Court or Tribunal or any authority, all notices sent or purporting to have been sent, or taxes levied, demanded, assessed, imposed, collected or recovered or purporting to have been levied, demanded, assessed, imposed, collected or recovered under the provisions of Income-tax Act, 1961 (43 of 1961), in respect of income accruing or arising through or from the transfer of a capital asset situate in India in consequence of the transfer of a share or shares of a company registered or incorporated outside India or in consequence of an agreement, or otherwise, outside India, shall be deemed to have been validly made, and the notice, levy, demand, assessment, imposition, collection or recovery of tax shall be valid and shall be deemed always to have been valid and shall not be called in question on the ground that the tax was not chargeable or any ground including that it is a tax on capital gains arising out of transactions which have taken place outside India, and accordingly, any tax levied, demanded, assessed, imposed or deposited before the commencement of this Act and chargeable for a period prior to such commencement but not collected or recovered before such commencement, may be collected or recovered and appropriated in accordance with the provisions of the Income-tax Act, 1961 as amended by this Act, and the rules made thereunder and there shall be no liability or obligation to make any refund whatsoever:

²[Provided that this section shall cease to apply to the person who fulfils the following conditions, namely:—

  (i) where such person has filed any appeal before an appellate forum or a writ petition before the High Court or the Supreme Court against any order in respect of said income, he shall, either withdraw or submit an undertaking to withdraw such appeal or writ petition, in such form and manner as may be prescribed;

 (ii) where such person has initiated any proceeding for arbitration, conciliation or mediation, or has given any notice thereof under any law for the time being in force or under any agreement entered into by India with any other country or territory outside India, whether for protection of investment or otherwise, he shall either withdraw or submit an undertaking to withdraw the claim, if any, in such proceedings or notice, in such form and manner as may be prescribed;

 (iii) such person shall furnish an undertaking, in such form and manner as may be prescribed, waiving his right, whether direct or indirect, to seek or pursue any remedy or any claim in relation to the said income which may otherwise be available to him under any law for the time being in force, in equity, under any statute or under any agreement entered into by India with any country or territory outside India, whether for protection of investment or otherwise; and

 (iv) such other conditions as may be prescribed:

Provided further that if any amount becomes refundable under the Income-tax Act, 1961 (43 of 1961) to the person referred to in first proviso as a consequence of him fulfilling said conditions, such amount shall be refunded to him, but no interest under section 244A of the Income-tax Act, 1961 shall be paid on that amount.]

SECTION 87 OF THE JAMMU & KASHMIR REORGANISATION ACT, 2019

Special provision as to income-tax.

87. Where the assets, rights and liabilities of any body corporate carrying on business are, under the provisions of this Part, transferred to any other bodies corporate which after the transfer carry on the same business, the losses or profits or gains sustained by the body corporate first-mentioned which, but for such transfer, would have been allowed to be carried forward and set off in accordance with the provisions of Chapter VI of the Income-tax Act, 1961 (43 of 1961), shall be apportioned amongst the transferee bodies corporate in accordance with the rules to be made by the Central Government in this behalf and, upon such apportionment, the share of loss allotted to each transferee body corporate shall be dealt with in accordance with the provisions of Chapter VI of the said Act, as if the transferee body corporate had itself sustained such loss in a business carried on by it in the years in which those losses were sustained.