Income Tax Act, 2025
Section 3: Subs. by Act 20 of 1967, s. 9, for sub-section (3) (w.e.f. 11967).
3. Subs. by Act 20 of 1967, s. 9, for sub-section (3) (w.e.f. 11967).
171
Explanation.—The provisions of this clause shall apply only where—
(i) all the property of the firm relating to the business immediately before the succession
becomes the property of the company;
(ii) all the liabilities of the firm relating to the business immediately before the succession
become the liabilities of the company; and
(iii) all the shareholders of the company were partners of the firm immediately before the
succession.
1[(5) The Central Government, if it considers it necessary or expedient so to do, may, by notification
in the Official Gazette, direct that the deduction allowable under this section shall not be allowed in
respect of a ship acquired or machinery or plant installed after such date, not being earlier than three years
from the date of such notification, as may be specified therein.]
2[(6) Notwithstanding anything contained in the foregoing provisions of this section, no deduction by
way of development rebate shall be allowed in respect of any machinery or plant installed after the 31st
day of March, 1965, in any office premises or any residential accommodation, including any
accommodation in the nature of a guest-house:]
3[Provided that the provisions of this sub-section shall not apply in the case of an assessee being an
Indian company, in respect of any machinery or plant installed by it in premises used by it as a hotel,
where the hotel is for the time being approved in this behalf by the Central Government.]
4[33A. Development allowance.—(1) In respect of planting of tea bushes on any land in India owned
by an assessee who carries on business of growing and manufacturing tea in India, a sum by way of
development allowance equivalent to—
(i) where tea bushes have been planted on any land not planted at any time with tea bushes or on
any land which had been previously abandoned, 5[fifty per cent..] of the actual cost of planting; and
(ii) where tea bushes are planted in replacement of tea bushes that have died or have become
permanently useless on any land already planted, 6[thirty per cent..] of the actual cost of planting,
shall, subject to the provisions of this section, 7[be allowed as a deduction in the manner specified
hereunder, namely:—
(a) the amount of the development allowance shall, in the first instance, be computed with
reference to that portion of the actual cost of planting which is incurred during the previous year in
which the land is prepared for planting or replanting, as the case may be, and in the previous year
next following, and the amount so computed shall be allowed as a deduction in respect of such
previous year next following; and
(w.e.f. 11967).
171
Explanation.—The provisions of this clause shall apply only where—
all the property of the firm relating to the business immediately before the succession
becomes the property of the company;
all the liabilities of the firm relating to the business immediately before the succession
become the liabilities of the company; and
all the shareholders of the company were partners of the firm immediately before the
succession.
1[
The Central Government, if it considers it necessary or expedient so to do, may, by notification
in the Official Gazette, direct that the deduction allowable under this section shall not be allowed in
respect of a ship acquired or machinery or plant installed after such date, not being earlier than three years
from the date of such notification, as may be specified therein.]
2[
Notwithstanding anything contained in the foregoing provisions of this section, no deduction by
way of development rebate shall be allowed in respect of any machinery or plant installed after the 31st
day of March, 1965, in any office premises or any residential accommodation, including any
accommodation in the nature of a guest-house:]
3[Provided that the provisions of this sub-section shall not apply in the case of an assessee being an
Indian company, in respect of any machinery or plant installed by it in premises used by it as a hotel,
where the hotel is for the time being approved in this behalf by the Central Government.]
4[33A. Development allowance.—
In respect of planting of tea bushes on any land in India owned
by an assessee who carries on business of growing and manufacturing tea in India, a sum by way of
development allowance equivalent to—
where tea bushes have been planted on any land not planted at any time with tea bushes or on
any land which had been previously abandoned, 5[fifty per cent..] of the actual cost of planting; and
where tea bushes are planted in replacement of tea bushes that have died or have become
permanently useless on any land already planted, 6[thirty per cent..] of the actual cost of planting,
shall, subject to the provisions of this section, 7[be allowed as a deduction in the manner specified
hereunder, namely:—
the amount of the development allowance shall, in the first instance, be computed with
reference to that portion of the actual cost of planting which is incurred during the previous year in
which the land is prepared for planting or replanting, as the case may be, and in the previous year
next following, and the amount so computed shall be allowed as a deduction in respect of such
previous year next following; and