Income Tax Act, 2025
Section 1: Subs. by Act 3 of 1989, s. 7, for sub-section (10) (w.e.f. 11989).
1. Subs. by Act 3 of 1989, s. 7, for sub-section (10) (w.e.f. 11989).
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1[32AC. Investment in new plant or machinery.—(1) Where an assessee, being a company,
engaged in the business of manufacture or production of any article or thing, acquires and installs new
asset after the 31st day of March, 2013 but before the 1st day of April, 2015 and the aggregate amount of
actual cost of such new assets exceeds one hundred crore rupees, then, there shall be allowed a
deduction,—
(a) for the assessment year commencing on the 1st day of April, 2014, of a sum equal to fifteen
per cent. of the actual cost of new assets acquired and installed after the 31st day of March, 2013 but
before the 1st day of April, 2014, if the aggregate amount of actual cost of such new assets exceeds
one hundred crore rupees; and
(b) for the assessment year commencing on the 1st day of April, 2015, of a sum equal to fifteen
per cent. of the actual cost of new assets acquired and installed after the 31st day of March, 2013 but
before the 1st day of April, 2015, as reduced by the amount of deduction allowed, if any, under
clause (a).
2[(1A) Where an assessee, being a company, engaged in the business of manufacture or production of
any article or thing, acquires and installs new assets and the amount of actual cost of such new assets
3[acquired during any previous year exceeds twenty-five crore rupees and such assets are installed on or
before the 31st day of March, 2017], then, there shall be allowed a deduction of a sum equal to fifteen per
cent. of the actual cost of such new assets for the assessment year relevant to that previous year:
4[Provided that where the installation of the new assets are in a year other than the year of acquisition,
the deduction under this sub-section shall be allowed in the year in which the new assets are installed:]
5[Provided further that] no deduction under this sub-section shall be allowed for the assessment year
commencing on the 1st day of April, 2015 to the assessee, which is eligible to claim deduction under
sub-section (1) for the said assessment year.
(1B) No deduction under sub-section (1A) shall be allowed for any assessment year commencing on
or after the 1st day of April, 2018.]
(2) If any new asset acquired and installed by the assessee is sold or otherwise transferred, except in
connection with the amalgamation or demerger, within a period of five years from the date of its
installation, the amount of deduction allowed under sub-section (1) 6[or sub-section (1A)] in respect of
such new asset shall be deemed to be the income of the assessee chargeable under the head “Profits and
gains of business or profession” of the previous year in which such new asset is sold or otherwise
transferred, in addition to taxability of gains, arising on account of transfer of such new asset.
(3) Where the new asset is sold or otherwise transferred in connection with the amalgamation or
demerger within a period of five years from the date of its installation, the provisions of sub-section (2)
shall apply to the amalgamated company or the resulting company, as the case may be, as they would
have applied to the amalgamating company or the demerged company.
(4) For the purposes of this section, “new asset” means any new plant or machinery (other than ship
or aircraft) but does not include—
(i) any plant or machinery which before its installation by the assessee was used either within or
outside India by any other person;
(ii) any plant or machinery installed in any office premises or any residential accommodation,
including accommodation in the nature of a guest house;
(w.e.f. 11989).
166
1[32AC. Investment in new plant or machinery.—
Where an assessee, being a company,
engaged in the business of manufacture or production of any article or thing, acquires and installs new
asset after the 31st day of March, 2013 but before the 1st day of April, 2015 and the aggregate amount of
actual cost of such new assets exceeds one hundred crore rupees, then, there shall be allowed a
deduction,—
for the assessment year commencing on the 1st day of April, 2014, of a sum equal to fifteen
per cent. of the actual cost of new assets acquired and installed after the 31st day of March, 2013 but
before the 1st day of April, 2014, if the aggregate amount of actual cost of such new assets exceeds
one hundred crore rupees; and
for the assessment year commencing on the 1st day of April, 2015, of a sum equal to fifteen
per cent. of the actual cost of new assets acquired and installed after the 31st day of March, 2013 but
before the 1st day of April, 2015, as reduced by the amount of deduction allowed, if any, under
clause
Where an assessee, being a company, engaged in the business of manufacture or production of
any article or thing, acquires and installs new assets and the amount of actual cost of such new assets
3[acquired during any previous year exceeds twenty-five crore rupees and such assets are installed on or
before the 31st day of March, 2017], then, there shall be allowed a deduction of a sum equal to fifteen per
cent. of the actual cost of such new assets for the assessment year relevant to that previous year:
4[Provided that where the installation of the new assets are in a year other than the year of acquisition,
the deduction under this sub-section shall be allowed in the year in which the new assets are installed:]
5[Provided further that] no deduction under this sub-section shall be allowed for the assessment year
commencing on the 1st day of April, 2015 to the assessee, which is eligible to claim deduction under
sub-section
for the said assessment year.
No deduction under sub-section
shall be allowed for any assessment year commencing on
or after the 1st day of April, 2018.]
If any new asset acquired and installed by the assessee is sold or otherwise transferred, except in
connection with the amalgamation or demerger, within a period of five years from the date of its
installation, the amount of deduction allowed under sub-section
6[or sub-section
Where the new asset is sold or otherwise transferred in connection with the amalgamation or
demerger within a period of five years from the date of its installation, the provisions of sub-section
shall apply to the amalgamated company or the resulting company, as the case may be, as they would
have applied to the amalgamating company or the demerged company.
For the purposes of this section, “new asset” means any new plant or machinery (other than ship
or aircraft) but does not include—
any plant or machinery which before its installation by the assessee was used either within or
outside India by any other person;
any plant or machinery installed in any office premises or any residential accommodation,
including accommodation in the nature of a guest house;