2. Bar on formation style:
- It is not formed by splitting up of or reconstruction of a business already in existence.
- It is not formed by the transfer to a new business of machinery or plant previously used for any purpose except under the following circumstances-
- Such plant and machinery is imported
- Such plant and machinery is previously not used in India
- No depreciation on such plant and machinery is allowed to any person for any assessment year.
- Value of plant and machinery so transferred does not exceed 20% of the total value of plant and machinery.
- It is not formed by the transfer to a new business of a building previously used as a hotel or a convention centre.
- No deduction shall be allowed under any other section contained in Chapter VIA or Section 10AA, in relation to the profits and gains of undertaking.
- The provisions of section 80-IA (5)/ (8)/ (9)/ (10)/ (11) shall, so far as may be, apply to the eligible business under this section.
