Set up a Cold Chain facility for refrigeration, storage, and transportation of dairy products.

As per the provisions of section 35AD of the Income Tax Act, 1961, all assessee who are engaged in specified business (setting up and operating a cold chain facility) will be entitled to 100% deduction of capital expenditure incurred in the previous year as entirely devoted to said business shall be deducted from business income. Where for any assessment year any loss computed in respect of the specified business referred to in section 35AD(1) has not been wholly set off, so much of the loss as is not so set off or the whole loss where the assessee has no income from any other specified business shall be carried forward to the following assessment year, and: it shall be set off against the profits and gains, if any, of any specified business carried on by him assessable for that assessment year; and if the loss cannot be wholly so set off, the amount of loss not so set off shall be carried forward to the following assessment year and so on. Thus, the total capital expenditure of the entity ₹ 100 Crore as incurred during financial year 2023-24 will be allowed to the extent of profits earned which is ₹ 5 Crore and is available to carried forward and set-off in next assessment year and so on. So total deductions in a period of 10 years will be ₹ 5 Crore * 10 year = ₹ 50 crore.