Income Tax Act, 2025
Section 6: Ins. by Act 13 of 1966, s. 9 (w.e.f. 11966).
6. Ins. by Act 13 of 1966, s. 9 (w.e.f. 11966).
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(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 33or 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 sub-section (5) of section 155shall
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 (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.
2[34A. Restriction on unabsorbed depreciation and unabsorbed investment allowance for
limited period in case of certain domestic companies.—(1) In computing the profits and gains of the
business of a domestic company in relation to the previous year relevant to the assessment year
commencing on the 1st day of April, 1992, where effect is to be given to the unabsorbed depreciation
allowance or unabsorbed investment allowance or both in relation to any previous year relevant to the
assessment year commencing on or before the 1st day of April, 1991, the deduction shall be restricted to
two-third of such allowance or allowances and the balance,—
(a) where it relates to depreciation allowance, be added to the depreciation allowance for the
previous year relevant to the assessment year commencing on the 1st day of April, 1993 and be
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;
(b) where it relates to investment allowance, be carried forward to the assessment year
commencing on the 1st day of April, 1993 and the balance of the investment allowance, if any, still
outstanding shall be carried forward to the following assessment year and where the period of eight
years has expired before the portion of such balance is adjusted, the said period shall be extended
beyond eight years till such time the portion of the said balance is absorbed in the profits and gains of
the business of the domestic company.
(2) For the assessment year commencing on the 1st day of April, 1992, the provisions of
sub-section (2) of section 32 and sub-section (3) of section 32Ashall apply to the extent such provisions
are not inconsistent with the provisions of sub-section (1) of this section.
(3) Nothing contained in sub-section (1) shall apply where the amount of unabsorbed depreciation
allowance or of the unabsorbed investment allowance, as the case may be, or the aggregate amount of
such allowances in the case of a domestic company is less than one lakh rupees.
(4) Nothing contained in sections 234B and 234Cshall apply to any shortfall in the payment of any
tax due on the assessed tax or, as the case may be, returned income where such shortfall is on account of
restricting the amount of depreciation allowance or investment allowance under this section and the
assessee has paid the amount of shortfall before furnishing the return of income under sub-section (1) of
section 139.]
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 33or 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 sub-section
of section 155shall
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 (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
or sub-section
of section 33.
2[34A. Restriction on unabsorbed depreciation and unabsorbed investment allowance for
limited period in case of certain domestic companies.—
In computing the profits and gains of the
business of a domestic company in relation to the previous year relevant to the assessment year
commencing on the 1st day of April, 1992, where effect is to be given to the unabsorbed depreciation
allowance or unabsorbed investment allowance or both in relation to any previous year relevant to the
assessment year commencing on or before the 1st day of April, 1991, the deduction shall be restricted to
two-third of such allowance or allowances and the balance,—
where it relates to depreciation allowance, be added to the depreciation allowance for the
previous year relevant to the assessment year commencing on the 1st day of April, 1993 and be
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;
where it relates to investment allowance, be carried forward to the assessment year
commencing on the 1st day of April, 1993 and the balance of the investment allowance, if any, still
outstanding shall be carried forward to the following assessment year and where the period of eight
years has expired before the portion of such balance is adjusted, the said period shall be extended
beyond eight years till such time the portion of the said balance is absorbed in the profits and gains of
the business of the domestic company.
For the assessment year commencing on the 1st day of April, 1992, the provisions of
sub-section
of section 32 and sub-section
of section 32Ashall apply to the extent such provisions
are not inconsistent with the provisions of sub-section
of this section.
Nothing contained in sub-section
shall apply where the amount of unabsorbed depreciation
allowance or of the unabsorbed investment allowance, as the case may be, or the aggregate amount of
such allowances in the case of a domestic company is less than one lakh rupees.
Nothing contained in sections 234B and 234Cshall apply to any shortfall in the payment of any
tax due on the assessed tax or, as the case may be, returned income where such shortfall is on account of
restricting the amount of depreciation allowance or investment allowance under this section and the
assessee has paid the amount of shortfall before furnishing the return of income under sub-section
of
section 139.]