Income Tax Act, 2025
Section 9: Subs. by Act 3 of 1989, s. 25, for “the proviso” (w.e.f. 11989).
9. Subs. by Act 3 of 1989, s. 25, for “the proviso” (w.e.f. 11989).
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(iii) for any other purpose which is not a purpose of the business of the undertaking,
the investment allowance originally allowed shall be deemed to have been wrongly allowed, and the
1[Assessing Officer] may, notwithstanding anything contained in this Act, recompute the total income of
the assessee for the relevant previous year and make the necessary amendment; and the provisions
of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7)
of that section being reckoned,—
(i) in a case referred to in clause (a), from the end of the previous year in which the sale or other
transfer took place;
(ii) in a case referred to in clause (b), from the end of the ten years referred to in that clause;
(iii) in a case referred to in clause (c), from the end of the previous year in which the amount was
utilised.
Explanation.—For the purposes of clause (b), “new ship” or “new aircraft” or “new machinery or
plant” shall have the same meanings as in the2[Explanation below sub-section (2) of section 32A].]
(5) Where an allowance by way of development rebate has been made wholly or partly to an assessee
in respect of a ship, machinery or plant installed after the 31st day of December, 1957, in any assessment
year under section 33 or under the corresponding provisions of the Indian Income-tax Act, 1922 (11 of
1922), and subsequently—
(i) at any time before the expiry of eight years from the end of the previous year in which the ship
was acquired or the machinery or plant was installed, the ship, machinery or plant is sold or otherwise
transferred by the assessee to any person other than 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 in connection with any amalgamation or succession
referred to in sub-section (3) or sub-section (4) of section 33; or
(ii) at any time before the expiry of the eight years referred to in sub-section (3) of section 34, the
assesseeutilises the amount credited to the reserve account under clause (a) of that sub-section—
(a) for distribution by way of dividends or profits; or
(b) for remittance outside India as profits or for the creation of any asset outside India; or
(c) for any other purpose which is not a purpose of the business of the undertaking,
the development rebate originally allowed shall be deemed to have been wrongly allowed, and the
1[Assessing Officer] may, notwithstanding anything contained in this Act, recompute the total income of
the assessee for the relevant previous year and make the necessary amendment; and the provisions
of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7)
of that section being reckoned from the end of the previous year in which the sale or transfer took place or
the money was so utilised.
3[(5A) Where an allowance by way of development allowance has been made wholly or partly to an
assessee in respect of the cost of planting in any area in any assessment year under section 33A and
subsequently—
(i) at any time before the expiry of eight years from the end of the previous year in which such
allowance was made, the land is sold or otherwise transferred by the assessee to any person other than
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 in
connection with any amalgamation or succession referred to in sub-section (5) or sub-section (6) of
section 33A; or
for any other purpose which is not a purpose of the business of the undertaking,
the investment allowance originally allowed shall be deemed to have been wrongly allowed, and the
1[Assessing Officer] may, notwithstanding anything contained in this Act, recompute the total income of
the assessee for the relevant previous year and make the necessary amendment; and the provisions
of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section
of that section being reckoned,—
in a case referred to in clause
in a case referred to in clause
in a case referred to in clause
of section 32A].]
Where an allowance by way of development rebate has been made wholly or partly to an assessee
in respect of a ship, machinery or plant installed after the 31st day of December, 1957, in any assessment
year under section 33 or under the corresponding provisions of the Indian Income-tax Act, 1922 (11 of
1922), and subsequently—
at any time before the expiry of eight years from the end of the previous year in which the ship
was acquired or the machinery or plant was installed, the ship, machinery or plant is sold or otherwise
transferred by the assessee to any person other than 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 in connection with any amalgamation or succession
referred to in sub-section
or sub-section
of section 33; or
at any time before the expiry of the eight years referred to in sub-section
of section 34, the
assesseeutilises the amount credited to the reserve account under clause
of that sub-section—
for distribution by way of dividends or profits; or
for remittance outside India as profits or for the creation of any asset outside India; or
for any other purpose which is not a purpose of the business of the undertaking,
the development rebate originally allowed shall be deemed to have been wrongly allowed, and the
1[Assessing Officer] may, notwithstanding anything contained in this Act, recompute the total income of
the assessee for the relevant previous year and make the necessary amendment; and the provisions
of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section
of that section being reckoned from the end of the previous year in which the sale or transfer took place or
the money was so utilised.
3[
Where an allowance by way of development allowance has been made wholly or partly to an
assessee in respect of the cost of planting in any area in any assessment year under section 33A and
subsequently—
at any time before the expiry of eight years from the end of the previous year in which such
allowance was made, the land is sold or otherwise transferred by the assessee to any person other than
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 in
connection with any amalgamation or succession referred to in sub-section
or sub-section
of
section 33A; or