SECTION 35AD

1. Unlike other sections that provide deductions on profit or income earned, this section provides deductions on investment. That’s why it is called as investment-linked deductions. 
2. Capital expenditure or expenditure incurred prior to commencement of business will be allowed as deductions u/s 35AD provided the assessee is engaged in specified business u/s 35AD(8)(c) of the act. 
3. Other conditions are also there, which has a lot of inherent meaning and definitions. But this is an overview of sec 35AD. 
Please correct me if the above explanation has any mistakes.