Income Tax Act, 2025
Section 4: Subs. by Act 14 of 2001, s. 21, for sub-section (2) (w.e.f. 12002).
4. Subs. by Act 14 of 2001, s. 21, for sub-section (2) (w.e.f. 12002).
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1[32A. Investment allowance.—(1) In respect of a ship or an aircraft or machinery or plant specified
in sub-section (2), which is owned by the assessee and is wholly used for the purposes of the business
carried on by him, there shall, in accordance with and subject to the provisions of this section, be allowed
a deduction, in respect of the previous year in which the ship or aircraft was acquired or the machinery or
plant was 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, of a sum by way of investment allowance
equal to twenty-five per cent.. of the actual cost of the ship, aircraft, machinery or plant to the assessee:
2[Provided that in respect of a ship or an aircraft or machinery or plant specified in sub-section (8B),
this sub-section shall have effect as if for the words “twenty-five per cent.”, the words “twenty per cent.”
had been substituted:
Provided further that] no deduction shall be allowed under this section 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) anyoffice appliances or road transport vehicles;
(c) any ship, machinery or plant in respect of which the deduction by way of development rebate
is allowable under section 33; and
(d) 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.
2[Explanation.—For the purposes of this sub-section, “actual cost” means the actual cost of the
ship, aircraft, machinery or plant to the assessee as reduced by that part of such cost which has been
met out of the amount released to the assessee under sub-section (6) of section 32AB.]
(2) The ship or aircraft or machinery or plant referred to in sub-section (1) shall be the following,
namely:—
(a) a new ship or new aircraft acquired after the 31st day of March, 1976, by an assessee engaged
in the business of operation of ships or aircraft ;
(b) any new machinery or plant installed after the 31st day of March, 1976,—
(i) for the purposes of business of generation or distribution of electricity or any other form
of power; or
3[(ii) in a small-scale industrial undertaking for the purposes of business of manufacture or
production of any article or thing ; or
(iii) in any other industrial undertaking for the purposes of business of construction,
manufacture or productionof any article or thing, not being an article or thing specified in the list
in the Eleventh Schedule:]
2[Provided that nothing contained in clauses (a) and (b) shall apply in relation to,—
(i) a new ship or new aircraft acquired, or
(w.e.f. 12002).
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1[32A. Investment allowance.—
In respect of a ship or an aircraft or machinery or plant specified
in sub-section
any machinery or plant installed in any office premises or any residential accommodation,
including any accommodation in the nature of a guest-house ;
anyoffice appliances or road transport vehicles;
any ship, machinery or plant in respect of which the deduction by way of development rebate
is allowable under section 33; and
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.
2[Explanation.—For the purposes of this sub-section, “actual cost” means the actual cost of the
ship, aircraft, machinery or plant to the assessee as reduced by that part of such cost which has been
met out of the amount released to the assessee under sub-section
of section 32AB.]
The ship or aircraft or machinery or plant referred to in sub-section
shall be the following,
namely:—
a new ship or new aircraft acquired after the 31st day of March, 1976, by an assessee engaged
in the business of operation of ships or aircraft ;
any new machinery or plant installed after the 31st day of March, 1976,—
for the purposes of business of generation or distribution of electricity or any other form
of power; or
3[
in a small-scale industrial undertaking for the purposes of business of manufacture or
production of any article or thing ; or
in any other industrial undertaking for the purposes of business of construction,
manufacture or productionof any article or thing, not being an article or thing specified in the list
in the Eleventh Schedule:]
2[Provided that nothing contained in clauses
and
shall apply in relation to,—
a new ship or new aircraft acquired, or