Consequences of mis-utilisation / non-utilisation of reserve [Section 10AA(3)]:

Where any amount credited to the Special Economic Zone Re-investment Reserve Account –

(a) has been utilised for any purpose other than those referred to in sub-section (2), the amount so utilized shall be deemed to be the profits in the year in which the amount was so utilised and charged to tax accordingly; or

(b) has not been utilised before the expiry of the said period of 3 years, the amount not so utilised, shall be deemed to be the profits in the year immediately following the said period of three years and be charged to tax accordingly [Sub-section (3)].