Conditions for depreciation allowance and development rebate 4
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. Inserted by the Finance No. 2 Act, 1967, w. e. f. 1- 4- 1967. 2. The deduction under this section has been discontinued from assessment year 1985 - 86 see proviso to the section. 3. Inserted by the Finance Act, 1984, w. e. f. 1- 4- 1985. 5. Prior to the omission, sub- section 1 , as amended by the Taxation laws Amendment Act, 1970, w. e. f. 1- 4- 1971, read as under 1 The deductions referred to in sub- section 1 or subsection 1A of section 32 shall be allowed only if the prescribed particulars have been furnished and the deduction referred to in section 33 shall be allowed only if the particulars prescribed for the purpose of clause i and clause ii of sub- section 1 of section 32 have been furnished by the assessee in respect of the ship or machinery or plant. 6. Prior to the omission, sub- section 2 , as amended by the Finance Act, 1965, w. e. f. 1- 4- 1965 the Finance No. 2 Act, 1967, w. e. f. 1- 4- 1967 the Taxation Laws Amendment Act, 1970, w. e. f. 1- 4- 1971 the Direct Taxes Amendment Act, 1974, w. e. f. 1- 4- 1975 and the Finance No. 2 Act, 1980, w. e. f. 1- 4- 1981, read as under Provisions Act, 1986 , w. e. f. 1- 4- 1988 .
Inserted by the Finance Act, 1966, w. e. f. 1- 4- 1966.
3 a The deduction referred to in section 33 shall not be allowed unless an amount equal to seventy- five per cent of the development rebate to be actually allowed is debited to the profit and loss account of any previous year in respect of which the deduction is to be allowed under sub- section 2 of that section or any earlier previous year being a previous year not earlier than the year in which the ship was acquired or the machinery or plant was installed or the ship, machinery or plant was first put to use and credited to a reserve account to be utilised by the assessee during the period of eight years next following for the purposes of the business of the undertaking, other than- i for distribution by way of dividends or profits or ii for remittance outside India as profits or for the creation of any asset outside India Provided that this clause shall not apply where the assessee is a company, being a licensee within the meaning of the Electricity Supply Act, 1948 54 of 1948 , or where the ship has been acquired or the machinery or plant has been installed before the 1st day of January, 1958 Provided further that where a ship has been acquired after the 28th day of February, 1966 , this clause shall have effect in respect of such ship as if for the words seventy- five, the word fifty had been substituted. 999999. 2 For the purposes of section 32- i the aggregate of all deductions in respect of depreciation made under sub- section 1 or sub- section 1A of section 32 or under the Indian Income- tax Act, 1922 11 of 1922 , or under any Act repealed by that Act or under the Indian Income- tax Act, 1886 2 of 1886 , shall, in no case, exceed the actual cost to the assessee of the building, machinery, plant, furniture, structure or work, as the case may be. Explanation Where a capital asset is transferred- i by a holding company to its subsidiary company or by a subsidiary company to its holding company, or ii by a company to another company in a scheme of amalgamation, and the conditions specified in clause iv or clause v or, as the case may be, clause vi of section 47 are satisfied, then, in determining the aggregate of all deductions in respect of depreciation under this clause, account shall also be taken of the deductions in respect of depreciation allowed in the case of the company from which the asset has been transferred ii nothing in clause i or clause ii or clause iia or clause iv or clause v or clause vi of sub- section 1 of section 32 shall be deemed to authorise the allowance for any previous year of any sum in respect of any building, machinery, plant or furniture sold, discarded, demolished or destroyed in that year iii nothing in clause i of sub- section 1A of section 32 shall be deemed to authorise the allowance for any previous year of any sum in respect of any structure or work in or in relation to a building referred to in that sub- section which is sold, discarded, demolished or destroyed or is surrendered as a result of the determination of the lease or other right of occupancy in respect of the building in that year. 1. Substituted for the relevant previous year by the Finance Act, 1990, w. r. e. f. 1- 4- 1962. 2. Inserted by the Finance Act, 1966, w. e. f. 1- 4- 1966. Explanation.- Omitted by the Finance Act, 1990 , w. r. e. f. 1- 4- 1962 . b If any ship, machinery or plant is sold or otherwise transferred by the assessee to any person at any time before the expiry of eight years from the end of the previous year in which it was acquired or installed, any allowance made under section 33 or under the corresponding provisions of the Indian Income- tax Act, 1922 11 of 1922 , in respect of that ship, machinery or plant shall be deemed to have been wrongly made for the- purposes of this Act, and the provisions of subsection 5 of section 155 shall apply accordingly Provided that this clause shall not apply,- i where the ship has been acquired or the machinery or plant has been installed before the 1st day of January, 1958 or ii where the ship, machinery or plant is sold or otherwise transferred by the assessee to the Government, a local authority, a corporation established by a Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 2 1 of 1956 or iii where the sale or transfer of the ship, machinery or plant is made in connection with the amalgamation or succession, referred to in sub- section 3 or sub- section 4 of section 33.
for distribution by way of dividends or profits or
for remittance outside India as profits or for the creation of any asset outside India Provided that this clause shall not apply where the assessee is a company, being a licensee within the meaning of the Electricity Supply Act, 1948 54 of 1948 , or where the ship has been acquired or the machinery or plant has been installed before the 1st day of January, 1958 Provided further that where a ship has been acquired after the 28th day of February, 1966 , this clause shall have effect in respect of such ship as if for the words seventy- five, the word fifty had been substituted. 999999. 2 For the purposes of section 32- i the aggregate of all deductions in respect of depreciation made under sub- section 1 or sub- section 1A of section 32 or under the Indian Income- tax Act, 1922 11 of 1922 , or under any Act repealed by that Act or under the Indian Income- tax Act, 1886 2 of 1886 , shall, in no case, exceed the actual cost to the assessee of the building, machinery, plant, furniture, structure or work, as the case may be. Explanation Where a capital asset is transferred- i by a holding company to its subsidiary company or by a subsidiary company to its holding company, or ii by a company to another company in a scheme of amalgamation, and the conditions specified in clause iv or clause v or, as the case may be, clause vi of section 47 are satisfied, then, in determining the aggregate of all deductions in respect of depreciation under this clause, account shall also be taken of the deductions in respect of depreciation allowed in the case of the company from which the asset has been transferred ii nothing in clause i or clause ii or clause iia or clause iv or clause v or clause vi of sub- section 1 of section 32 shall be deemed to authorise the allowance for any previous year of any sum in respect of any building, machinery, plant or furniture sold, discarded, demolished or destroyed in that year iii nothing in clause i of sub- section 1A of section 32 shall be deemed to authorise the allowance for any previous year of any sum in respect of any structure or work in or in relation to a building referred to in that sub- section which is sold, discarded, demolished or destroyed or is surrendered as a result of the determination of the lease or other right of occupancy in respect of the building in that year. 1. Substituted for the relevant previous year by the Finance Act, 1990, w. r. e. f. 1- 4- 1962. 2. Inserted by the Finance Act, 1966, w. e. f. 1- 4- 1966. Explanation.- Omitted by the Finance Act, 1990 , w. r. e. f. 1- 4- 1962 . b If any ship, machinery or plant is sold or otherwise transferred by the assessee to any person at any time before the expiry of eight years from the end of the previous year in which it was acquired or installed, any allowance made under section 33 or under the corresponding provisions of the Indian Income- tax Act, 1922 11 of 1922 , in respect of that ship, machinery or plant shall be deemed to have been wrongly made for the- purposes of this Act, and the provisions of subsection 5 of section 155 shall apply accordingly Provided that this clause shall not apply,-
If any ship, machinery or plant is sold or otherwise transferred by the assessee to any person at any time before the expiry of eight years from the end of the previous year in which it was acquired or installed, any allowance made under section 33 or under the corresponding provisions of the Indian Income- tax Act, 1922 11 of 1922 , in respect of that ship, machinery or plant shall be deemed to have been wrongly made for the- purposes of this Act, and the provisions of subsection 5 of section 155 shall apply accordingly Provided that this clause shall not apply,-
where the ship has been acquired or the machinery or plant has been installed before the 1st day of January, 1958 or
where the ship, machinery or plant is sold or otherwise transferred by the assessee to the Government, a local authority, a corporation established by a Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 2 1 of 1956 or
where the sale or transfer of the ship, machinery or plant is made in connection with the amalgamation or succession, referred to in sub- section 3 or sub- section 4 of section 33.