Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area
(1)
If the assessee has–– (a) capital gains arising from the transfer of capital asset, being machinery or plant or building or land or any rights in building or land used for the business of an industrial undertaking situated in an urban area, effected in the case of shifting of an industrial undertaking situated in an urban area (original asset) to any non-urban area (new area); and (b) within one year before or three years after the date of such transfer,— (i) purchased new machinery or plant for business of the industrial undertaking in the new area;
(ii)
acquired building or land or constructed building for his business in the said area;
(iii)
shifted the original asset and transferred its establishment to such area; and (iv) incurred expenses on such other purpose as specified in a scheme notified by the Central Government for this section, then, instead of the capital gains being charged to income tax as income of the tax year in which the transfer took place, it shall be dealt with as follows:— (A) if the cost and expenses incurred in on all or any of the purposes mentioned in clauses (i) to (iv) (new asset),–– (I) is less than the capital gains, the difference shall be charged under section 67 as the income of the tax year; or (II) is equal to or more than the capital gain, no capital gain shall be charged under section 67;