Depreciation
In respect of depreciation of buildings, machinery, plant or furniture owned by the assessee and used for the purposes of the business or profession, the following deductions shall, subject to the provisions of section 34, be allowed- 1. Substituted for 43C by the Finance No. 2 Act, 1991, w. e. f. 1- 4- 1992. Earlier, 43C was substituted for 43B by the Finance Act, 1988, w. e. f. 1- 4- 1988 43B for 43A by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989 and 43A for 43 by the Finance No. 2 Act, 1967, w. e. f. 1- 4- 1967. 2. Omitted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986, w. e. f. 1- 4- 1988. Prior to the substitution, clause ii , as substituted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 4- 1976, read as under -- ii in the case of any block of assets, such percentage on the written down value thereof as may be prescribed Provided that where the actual cost of any machinery or plant does not exceed five thousand rupees, the actual cost thereof shall be allowed as a deduction in respect of the previous year in which such machinery or plant is first put to use by the assessee for the purposes of his business or profession Provided further that no deduction shall be allowed under this clause in respect of- a any motor car manufactured outside India, where such motor car is acquired by the assessee after the 28th day of February, 1975 , unless it is used- i in a business of running it on hire for tourists or ii outside India in his business or profession in another country and b any machinery or plant if the actual cost thereof is allowed as a deduction in one or more years under an agreement entered into by the Central Government under section 42 Provided also that where any asset falling within a block of assets is acquired by the assessee during the previous year and is put to use for the purposes of business or profession for a period of less than one hundred and eighty days in that previous year, the deduction under this clause in respect of such asset shall be restricted to fifty per cent of the amount calculated at the percentage prescribed under this clause in the case of block of assets comprising such asset 999999. i in the case of ships other than ships ordinarily plying on inland waters, such percentage on the actual cost thereof to the assesses as may, in any case or class of cases or in respect of any period or periods, be prescribed Provided that different percentages may be prescribed for different periods having regard to the date of acquisition of the ship 1. Substituted for in the case of buildings, machinery, plant or furniture, other than ships covered by clause i , such percentage on the written down value thereof as may in any case or class of cases be prescribed by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986, w. e. f. 1- 4- 1988. 3. Being omitted by the Finance Act, 1995, w. e. f. 1- 4- 1996. 4. Inserted by the Finance Act, 1966, w. e. f. 1- 4- 1966. 5. Substituted for seven hundred and fifty by the Finance Act, 1983, w. e. f. 1- 4- 1984. 6. Substituted by the Finance No. 2 Act, 1991, w. e. f. 1- 4- 1992. Prior to the substitution, the second proviso, as inserted by the Finance Act, 1975, w. e. f. 1- 4- 1975 and amended by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986, w. e. f. 1- 41988, read as under Provided further that no deduction shall be allowed under this clause in respect of any motor car manufactured outside India, where such motor car is acquired by the assessee after the 28th day of February, 1975, and is used otherwise than in a business of running it on hire for tourists 7. Being omitted by the Finance Act, 1995, w. e. f. 1- 4- 1996. 9. Being substituted by further by the Finance Act, 1995, w. e. f. 1- 4- 1996. Provided also that, in respect of the previous year relevant to the assessment year commencing on the 1st day of April, 1991 , the deduction in relation to any block of assets under this clause shall, in the case of a company, be restricted to seventy- five per cent of the amount calculated at the percentage, on the written down value of such assets, prescribed under this Act immediately before the commencement of the Taxation Laws Amendment Act, 1991 Explanation 1-Where the business or profession of the assessee is carried on in a building not owned by him but in respect of which the assessee holds a lease or other right of occupancy and any capital expenditure is incurred by the assessee for the purposes of the business or profession on the construction of any structure or doing of any work, in or in relation to, and by way of renovation or extension of, or improvement to, the building, then, the provisions of this clause shall apply as if the said structure or work is a building owned by the assessee. Explanation 2.- For the purposes of this clause written down value of the block of assets shall have the same meaning as in clause c of sub- section 6 of section 43 iia Omitted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986 , w. e. f 1- 4- 1988 . 1. Inserted by the Taxation Laws Amendment Act, 1991, w. e. f. 15- 1- 2 Inserted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986 , w. e. f. 1- 4- 1988 . 3 Prior to its omission, clause iia , as inserted by the Finance No. 2 Act, 1980 , w. e. f. 1- 4- 1981 , read as under iia in the case of any new machinery or plant other than ships and aircraft which has been installed after the 31st day of March, 1980 , but before the 1st day of April, 1985 , a further sum equal to one- half of the amount admissible under clause ii exclusive of extra allowance for double or multiple shift working of the machinery or plant and the extra allowance in respect of machinery or plant installed in any premises used as a hotel in respect of the previous year in which such machinery or plant is installed or, if the machinery or plant is first put to use in the immediately succeeding previous year, then, in respect of that previous year Provided that no deduction shall be allowed under this clause in respect of,- a any machinery or plant installed in any office premises or any residential accommodation b any office appliances or road transport vehicles and c any machinery or plant, the whole of the actual cost of which is allowed as a deduction whether by way of depreciation or otherwise in computing the income chargeable under the head Profits and gains of business or profession of any one previous year. Explanation.- For the purposes of this clause- a new machinery or plant shall have the meaning assigned to it in clause 2 of the Explanation below clause vi of this sub- section b residential accommodation includes accommodation in the nature of a guest house but does not include premises used as a hotel iii Omitted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986 , w. e. f. 1- 4- 1988 . iv Omitted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986 , w. e. f. 1- 4- 1988 . v Omitted by the Taxation Laws Amendment and Miscellaneous 1. Prior to its omission, clause iii , as amended by the Finance Act, 1966, w. e. f. 1- 4- 1966 and the Finance No. 2 Act, 1967, w. e. f. 1- 4- 1967, read as under iii in the case of any building, machinery, plant or furniture which is sold, discarded, demolished or destroyed in the previous year other than the previous year in which it is first brought into use , the amount by which the moneys payable in respect of such building, machinery, plant or furniture, together with the amount of scrap value, if any, fall short of the written down value thereof Provided that such deficiency is actually written off in the books of the assessee. Explanation.- For the purposes of this clause,- 1 moneys payable in respect of any building, machinery, plant or furniture includes- a any insurance, salvage or compensation moneys payable in respect thereof b where the building, machinery, plant or furniture is sold, the price for which it is sold, so, however, that where the actual cost of a motor car is, in accordance with the proviso to clause 1 of section 43, taken to be twenty- five thousand rupees, the moneys payable in respect of such motor car shall be taken to be a sum which bears to the amount for which the motor car is sold or, as the case may be, the amount of any insurance, salvage or compensation moneys payable in respect thereof including the amount of scrap value, if any the same proportion as the amount of twenty- five thousand rupees bears to the actual cost of the motor car to the assessee as it would have been computed before applying the said proviso 2 sold includes a transfer by way of exchange or a compulsory acquisition under any law for the time being in force but does not include a transfer, in a scheme of amalgamation, of any asset by the amalgamating company to the amalgamated company where the amalgamated company is an Indian company 2. Prior to the omission, clause iv , as amended by the Finance Act, 1966, w. e. f. 1- 4- 1966 Finance Act, 1976, w. e. f. 1- 4- 1977, Finance Act, 1978, w. e. f. 1- 4- 1979 and Finance Act, 1983, w. e. f. 1- 4- 1984, read as under iv in the case of any building which has been newly erected after the 31st day of March, 1961, where the building is used solely for the purpose of residence of persons employed in the business and the income of each such person chargeable under the head Salaries is ten thousand rupees or less, or where the building is used solely or mainly for the welfare of such persons as a hospital, creche, school, canteen, library, recreational centre, shelter, restroom, or lunch room, a sum equal to forty per cent of the actual cost of the building to the assessee in respect of the previous year of erection of the building. 3. Prior to the omission, clause v , as inserted by the Finance No. 2 Act, 1967, w. e. f. 1- 4- 1968 and amended by the Finance Act, 1983, w. e. f. 1- 4- 1984, read as under v in the case of any new building, the erection of which is completed after the 31st day of March, 1967, where the building is owned by an Indian company and used by such company as a hotel and such hotel is for the time being approved in this behalf by the Central Government, a sum equal to Provisions Act, 1986 , w. e. f. 1- 4- 1988 . vi Omitted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986 , w. e. f 1- 4- 1988 . 999999. -- twenty- five per cent of the actual cost of erection of the building to the assessee, in respect of the previous year in which the erection of the building is completed or, if such building is first brought into use as a hotel in the immediately succeeding previous year, then in respect of that previous year 1. Prior to the omission, clause vi , as inserted by the Direct Taxes Amendment Act, 1974, w. e. f. 1- 4- 1975 and amended by the Finance Act, 1976, w. e. f. 1- 4- 1976, read as under-. vi in the case of a new ship or a new aircraft acquired after the 31st day of May, 1974, by an assessee engaged in the business of the operation of ships or aircraft or in the case of the new machinery or plant other than the office appliances or road transport vehicles installed after that date for the purpose of business of generation or distribution of electricity or any other for- in of the power or of construction, manufacture or production of any one or more of the articles or things specified in items 1 to 24 both inclusive in the list in the Ninth Schedule or in the case of new machinery or plant other than office appliances or road transport vehicles installed after that date in a small scale industrial under- taking for the purposes of business of manufacture or production of any other articles or things, a sum equal to twenty per cent of the actual cost of the ship, aircraft, machinery or plant to the assessee, in respect of the previous year in which the ship or aircraft is acquired or the machinery or plant is installed or if the ship, aircraft, machinery or plant is first put to use in the immediately succeeding previous year, then, in respect of that previous year but any such sum shall not deductible in determining the written down value for the purposes of clause ii Provided that the assessee may, before the expiry of the time allowed under sub- section 1 or sub- section 2 of section 139, whether fixed originally or on extension, for furnishing the return of income for the assessment year in respect of which he first becomes entitled to deduction under this clause, furnish to the Income- tax Officer a declaration in writing that the provisions of this clause, shall not apply to him, and if he does so, the provisions of this clause shall not apply to him for that assessment year and for every subsequent assessment year so, however, that the assessee may, by notice in writing furnished to the Income- tax Officer before the expiry of the time allowed under sub- section 1 or sub- section 2 of section 139, whether fixed originally or on extension, for furnishing the return of income for any such subsequent assessment year, revoke his declaration and upon such revocation, the provisions of this clause shall apply to the assessee for that subsequent assessment year and for every assessment year thereafter Provided further that no deduction shall be allowed under this clause in respect of- a any machinery or plant installed in any office premises or any residential accommodation, including any accommodation in the nature of a guest house b any ship, aircraft, machinery or plant in respect of which the deduction by way of development rebate is allowable under section 33 and c any ship or aircraft acquired after the 31st day of March, 1976, or any machinery or plant installed after that date. Explanation.- For the purposes of this clause,- 1 new ship or new aircraft includes a ship or aircraft which before the date of the acquisition by the assessee was used by any other person, if it was not at any time previous to the date--
in the case of any block of assets, such percentage on the written down value thereof as may be prescribed Provided that where the actual cost of any machinery or plant does not exceed five thousand rupees, the actual cost thereof shall be allowed as a deduction in respect of the previous year in which such machinery or plant is first put to use by the assessee for the purposes of his business or profession Provided further that no deduction shall be allowed under this clause in respect of- a any motor car manufactured outside India, where such motor car is acquired by the assessee after the 28th day of February, 1975 , unless it is used-
a any motor car manufactured outside India, where such motor car is acquired by the assessee after the 28th day of February, 1975 , unless it is used-
in a business of running it on hire for tourists or
outside India in his business or profession in another country and b any machinery or plant if the actual cost thereof is allowed as a deduction in one or more years under an agreement entered into by the Central Government under section 42 Provided also that where any asset falling within a block of assets is acquired by the assessee during the previous year and is put to use for the purposes of business or profession for a period of less than one hundred and eighty days in that previous year, the deduction under this clause in respect of such asset shall be restricted to fifty per cent of the amount calculated at the percentage prescribed under this clause in the case of block of assets comprising such asset 999999. i in the case of ships other than ships ordinarily plying on inland waters, such percentage on the actual cost thereof to the assesses as may, in any case or class of cases or in respect of any period or periods, be prescribed Provided that different percentages may be prescribed for different periods having regard to the date of acquisition of the ship 1. Substituted for in the case of buildings, machinery, plant or furniture, other than ships covered by clause i , such percentage on the written down value thereof as may in any case or class of cases be prescribed by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986, w. e. f. 1- 4- 1988. 3. Being omitted by the Finance Act, 1995, w. e. f. 1- 4- 1996. 4. Inserted by the Finance Act, 1966, w. e. f. 1- 4- 1966. 5. Substituted for seven hundred and fifty by the Finance Act, 1983, w. e. f. 1- 4- 1984. 6. Substituted by the Finance No. 2 Act, 1991, w. e. f. 1- 4- 1992. Prior to the substitution, the second proviso, as inserted by the Finance Act, 1975, w. e. f. 1- 4- 1975 and amended by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986, w. e. f. 1- 41988, read as under Provided further that no deduction shall be allowed under this clause in respect of any motor car manufactured outside India, where such motor car is acquired by the assessee after the 28th day of February, 1975, and is used otherwise than in a business of running it on hire for tourists 7. Being omitted by the Finance Act, 1995, w. e. f. 1- 4- 1996. 9. Being substituted by further by the Finance Act, 1995, w. e. f. 1- 4- 1996. Provided also that, in respect of the previous year relevant to the assessment year commencing on the 1st day of April, 1991 , the deduction in relation to any block of assets under this clause shall, in the case of a company, be restricted to seventy- five per cent of the amount calculated at the percentage, on the written down value of such assets, prescribed under this Act immediately before the commencement of the Taxation Laws Amendment Act, 1991 Explanation 1-Where the business or profession of the assessee is carried on in a building not owned by him but in respect of which the assessee holds a lease or other right of occupancy and any capital expenditure is incurred by the assessee for the purposes of the business or profession on the construction of any structure or doing of any work, in or in relation to, and by way of renovation or extension of, or improvement to, the building, then, the provisions of this clause shall apply as if the said structure or work is a building owned by the assessee. Explanation 2.- For the purposes of this clause written down value of the block of assets shall have the same meaning as in clause c of sub- section 6 of section 43
b any machinery or plant if the actual cost thereof is allowed as a deduction in one or more years under an agreement entered into by the Central Government under section 42 Provided also that where any asset falling within a block of assets is acquired by the assessee during the previous year and is put to use for the purposes of business or profession for a period of less than one hundred and eighty days in that previous year, the deduction under this clause in respect of such asset shall be restricted to fifty per cent of the amount calculated at the percentage prescribed under this clause in the case of block of assets comprising such asset 999999. i in the case of ships other than ships ordinarily plying on inland waters, such percentage on the actual cost thereof to the assesses as may, in any case or class of cases or in respect of any period or periods, be prescribed Provided that different percentages may be prescribed for different periods having regard to the date of acquisition of the ship 1. Substituted for in the case of buildings, machinery, plant or furniture, other than ships covered by clause i , such percentage on the written down value thereof as may in any case or class of cases be prescribed by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986, w. e. f. 1- 4- 1988. 3. Being omitted by the Finance Act, 1995, w. e. f. 1- 4- 1996. 4. Inserted by the Finance Act, 1966, w. e. f. 1- 4- 1966. 5. Substituted for seven hundred and fifty by the Finance Act, 1983, w. e. f. 1- 4- 1984. 6. Substituted by the Finance No. 2 Act, 1991, w. e. f. 1- 4- 1992. Prior to the substitution, the second proviso, as inserted by the Finance Act, 1975, w. e. f. 1- 4- 1975 and amended by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986, w. e. f. 1- 41988, read as under Provided further that no deduction shall be allowed under this clause in respect of any motor car manufactured outside India, where such motor car is acquired by the assessee after the 28th day of February, 1975, and is used otherwise than in a business of running it on hire for tourists 7. Being omitted by the Finance Act, 1995, w. e. f. 1- 4- 1996. 9. Being substituted by further by the Finance Act, 1995, w. e. f. 1- 4- 1996. Provided also that, in respect of the previous year relevant to the assessment year commencing on the 1st day of April, 1991 , the deduction in relation to any block of assets under this clause shall, in the case of a company, be restricted to seventy- five per cent of the amount calculated at the percentage, on the written down value of such assets, prescribed under this Act immediately before the commencement of the Taxation Laws Amendment Act, 1991 Explanation 1-Where the business or profession of the assessee is carried on in a building not owned by him but in respect of which the assessee holds a lease or other right of occupancy and any capital expenditure is incurred by the assessee for the purposes of the business or profession on the construction of any structure or doing of any work, in or in relation to, and by way of renovation or extension of, or improvement to, the building, then, the provisions of this clause shall apply as if the said structure or work is a building owned by the assessee. Explanation 2.- For the purposes of this clause written down value of the block of assets shall have the same meaning as in clause c of sub- section 6 of section 43
iia Omitted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986 , w. e. f 1- 4- 1988 . 1. Inserted by the Taxation Laws Amendment Act, 1991, w. e. f. 15- 1- 2 Inserted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986 , w. e. f. 1- 4- 1988 . 3 Prior to its omission, clause iia , as inserted by the Finance No. 2 Act, 1980 , w. e. f. 1- 4- 1981 , read as under iia in the case of any new machinery or plant other than ships and aircraft which has been installed after the 31st day of March, 1980 , but before the 1st day of April, 1985 , a further sum equal to one- half of the amount admissible under clause ii exclusive of extra allowance for double or multiple shift working of the machinery or plant and the extra allowance in respect of machinery or plant installed in any premises used as a hotel in respect of the previous year in which such machinery or plant is installed or, if the machinery or plant is first put to use in the immediately succeeding previous year, then, in respect of that previous year Provided that no deduction shall be allowed under this clause in respect of,- a any machinery or plant installed in any office premises or any residential accommodation b any office appliances or road transport vehicles and c any machinery or plant, the whole of the actual cost of which is allowed as a deduction whether by way of depreciation or otherwise in computing the income chargeable under the head Profits and gains of business or profession of any one previous year. Explanation.- For the purposes of this clause- a new machinery or plant shall have the meaning assigned to it in clause 2 of the Explanation below clause vi of this sub- section b residential accommodation includes accommodation in the nature of a guest house but does not include premises used as a hotel
a any machinery or plant installed in any office premises or any residential accommodation
b any office appliances or road transport vehicles and
c any machinery or plant, the whole of the actual cost of which is allowed as a deduction whether by way of depreciation or otherwise in computing the income chargeable under the head Profits and gains of business or profession of any one previous year. Explanation.- For the purposes of this clause-
a new machinery or plant shall have the meaning assigned to it in clause 2 of the Explanation below clause vi of this sub- section
b residential accommodation includes accommodation in the nature of a guest house but does not include premises used as a hotel
Omitted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986 , w. e. f. 1- 4- 1988 .
Omitted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986 , w. e. f. 1- 4- 1988 .
Omitted by the Taxation Laws Amendment and Miscellaneous 1. Prior to its omission, clause iii , as amended by the Finance Act, 1966, w. e. f. 1- 4- 1966 and the Finance No. 2 Act, 1967, w. e. f. 1- 4- 1967, read as under iii in the case of any building, machinery, plant or furniture which is sold, discarded, demolished or destroyed in the previous year other than the previous year in which it is first brought into use , the amount by which the moneys payable in respect of such building, machinery, plant or furniture, together with the amount of scrap value, if any, fall short of the written down value thereof Provided that such deficiency is actually written off in the books of the assessee. Explanation.- For the purposes of this clause,- 1 moneys payable in respect of any building, machinery, plant or furniture includes- a any insurance, salvage or compensation moneys payable in respect thereof b where the building, machinery, plant or furniture is sold, the price for which it is sold, so, however, that where the actual cost of a motor car is, in accordance with the proviso to clause 1 of section 43, taken to be twenty- five thousand rupees, the moneys payable in respect of such motor car shall be taken to be a sum which bears to the amount for which the motor car is sold or, as the case may be, the amount of any insurance, salvage or compensation moneys payable in respect thereof including the amount of scrap value, if any the same proportion as the amount of twenty- five thousand rupees bears to the actual cost of the motor car to the assessee as it would have been computed before applying the said proviso 2 sold includes a transfer by way of exchange or a compulsory acquisition under any law for the time being in force but does not include a transfer, in a scheme of amalgamation, of any asset by the amalgamating company to the amalgamated company where the amalgamated company is an Indian company 2. Prior to the omission, clause iv , as amended by the Finance Act, 1966, w. e. f. 1- 4- 1966 Finance Act, 1976, w. e. f. 1- 4- 1977, Finance Act, 1978, w. e. f. 1- 4- 1979 and Finance Act, 1983, w. e. f. 1- 4- 1984, read as under iv in the case of any building which has been newly erected after the 31st day of March, 1961, where the building is used solely for the purpose of residence of persons employed in the business and the income of each such person chargeable under the head Salaries is ten thousand rupees or less, or where the building is used solely or mainly for the welfare of such persons as a hospital, creche, school, canteen, library, recreational centre, shelter, restroom, or lunch room, a sum equal to forty per cent of the actual cost of the building to the assessee in respect of the previous year of erection of the building. 3. Prior to the omission, clause v , as inserted by the Finance No. 2 Act, 1967, w. e. f. 1- 4- 1968 and amended by the Finance Act, 1983, w. e. f. 1- 4- 1984, read as under v in the case of any new building, the erection of which is completed after the 31st day of March, 1967, where the building is owned by an Indian company and used by such company as a hotel and such hotel is for the time being approved in this behalf by the Central Government, a sum equal to Provisions Act, 1986 , w. e. f. 1- 4- 1988 .
Omitted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986 , w. e. f 1- 4- 1988 . 999999. -- twenty- five per cent of the actual cost of erection of the building to the assessee, in respect of the previous year in which the erection of the building is completed or, if such building is first brought into use as a hotel in the immediately succeeding previous year, then in respect of that previous year 1. Prior to the omission, clause vi , as inserted by the Direct Taxes Amendment Act, 1974, w. e. f. 1- 4- 1975 and amended by the Finance Act, 1976, w. e. f. 1- 4- 1976, read as under-. vi in the case of a new ship or a new aircraft acquired after the 31st day of May, 1974, by an assessee engaged in the business of the operation of ships or aircraft or in the case of the new machinery or plant other than the office appliances or road transport vehicles installed after that date for the purpose of business of generation or distribution of electricity or any other for- in of the power or of construction, manufacture or production of any one or more of the articles or things specified in items 1 to 24 both inclusive in the list in the Ninth Schedule or in the case of new machinery or plant other than office appliances or road transport vehicles installed after that date in a small scale industrial under- taking for the purposes of business of manufacture or production of any other articles or things, a sum equal to twenty per cent of the actual cost of the ship, aircraft, machinery or plant to the assessee, in respect of the previous year in which the ship or aircraft is acquired or the machinery or plant is installed or if the ship, aircraft, machinery or plant is first put to use in the immediately succeeding previous year, then, in respect of that previous year but any such sum shall not deductible in determining the written down value for the purposes of clause ii Provided that the assessee may, before the expiry of the time allowed under sub- section 1 or sub- section 2 of section 139, whether fixed originally or on extension, for furnishing the return of income for the assessment year in respect of which he first becomes entitled to deduction under this clause, furnish to the Income- tax Officer a declaration in writing that the provisions of this clause, shall not apply to him, and if he does so, the provisions of this clause shall not apply to him for that assessment year and for every subsequent assessment year so, however, that the assessee may, by notice in writing furnished to the Income- tax Officer before the expiry of the time allowed under sub- section 1 or sub- section 2 of section 139, whether fixed originally or on extension, for furnishing the return of income for any such subsequent assessment year, revoke his declaration and upon such revocation, the provisions of this clause shall apply to the assessee for that subsequent assessment year and for every assessment year thereafter Provided further that no deduction shall be allowed under this clause in respect of- a any machinery or plant installed in any office premises or any residential accommodation, including any accommodation in the nature of a guest house b any ship, aircraft, machinery or plant in respect of which the deduction by way of development rebate is allowable under section 33 and c any ship or aircraft acquired after the 31st day of March, 1976, or any machinery or plant installed after that date. Explanation.- For the purposes of this clause,- 1 new ship or new aircraft includes a ship or aircraft which before the date of the acquisition by the assessee was used by any other person, if it was not at any time previous to the date--
1A Omitted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986 , w. e. f. 1- 4- 1988 .
Where, in the assessment of the assessee 1 full effect cannot-- of such acquisition owned by any person resident in India 1. 2 new machinery or plant includes machinery or plant which before its installation by the assessee was used outside India by any other person, if the following conditions are fulfilled, namely- a such machinery or plant was not, at any time previous to the date of such installation by the assessee, used in India b such machinery or plant is imported into India from any country outside India and c no deduction on account of depreciation in respect of such machinery or plant has been allowed or is allowable under the provisions of the Indian Income- tax Act, 1922 11 of 1922 , or this Act in computing the total income of any person for any period prior to the date of the installation of the machinery or plant by the assessee 3 an industrial undertaking shall be deemed to be a small scale industrial undertaking, if the aggregate value of the machinery and plant installed, as on the last day of the previous year, for the purposes of the business of the undertaking does not exceed seven hundred and fifty thousand rupees and for this purpose the value of any machinery or plant shall be,- a in the case of any machinery or plant owned by the assessee, the actual cost thereof to the assessee and b in the case of any machinery or plant hired by the assessee, the actual cost thereof as in the case of the owner of such machinery or plant. 1. Prior to the omission, sub- section 1A , as inserted by the Taxation Laws Amendment Act, 1970, w. e. f. 1- 4- 197 1, read as under 1A Where the business or profession is carried on in a building not owned by the assessee but in respect of which the assessee holds a lease or other right of occupancy and any capital expenditure is incurred by the assessee for the purposes of the business or profession after the 31st day of March, 1970, on the construction of any structure or doing of any work in or in relation to, and by way of renovation or extension of, or improvement to, the building then, in respect of depreciation of such structure or work, the following deductions shall, subject to the provisions of section 34, be allowed- i such percentage on the written down value of the structure or work as may in any case or class of cases be prescribed ii in the case of any such structure or work which is sold, discarded, demolished, destroyed or is surrendered as a result of the determination of the lease or other right of occupancy in respect of the building in the previous year other than the previous year in which it is constructed or done the amount by which the moneys payable in respect of such structure or work together with the amount of scrap value if any, fall short of the written down value thereof Provided that such deficiency is actually written off in the books of the assessee. Explanation.- For the purposes of this clause,-, i moneys payable, in respect of any structure or work, includes- a any insurance or compensation moneys payable in respect thereof b where the structure or work is sold, the price for which it is sold and ii sold shall have the meaning assigned to it in the Explanation to clause iii of sub- section 1 . 2. The words or, if the assessee is a registered firm or an unregistered firm assessed as a registered firm, in the assessment of its partners omitted by the Finance be given to any allowance under clause ii of sub- section 1 in any previous year, owing to there being no profits or gains chargeable for that previous year, or owing to the profits or gains chargeable being less than the allowance, then, subject to the provisions of sub- section 2 of section 72 and sub- section 3 of section 73, the allowance or part of the allowance to which effect has not been given, as the case may be, shall be added to the amount of the allowance for depreciation for the following previous year and deemed to be part of that allowance, or if there is no such allowance for that previous year, be deemed to be the allowance for that previous year, and so on for the succeeding previous years. 1 Substituted for under clause i or clause ii or clause iia or clause iv or clause v or clause vi of sub- section 1 or under clause i of sub- section 1A by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986 , w. e. f. 1- 4- 1988 .