India - Income Tax Act 2010 - Saarc

1.173 CH. IV - COMPUTATION OF BUSINESS INCOME S. 32Ain the immediately succeeding previous year, then, in respect of that previousyear, of a sum by way of investment allowance equal to twenty-five per cent ofthe actual cost of the ship, aircraft, machinery or plant to the assessee :14[Provided that in respect of a ship or an aircraft or machinery or plant specifiedin sub-section (8B), this sub-section shall have effect as if for the words “twentyfiveper cent”, the words “twenty per cent” had been substituted :]Provided 14 [further] that no deduction shall be allowed under this section inrespect of—(a) any machinery or plant installed in any office premises or anyresidential accommodation, including any accommodation in thenature of a guest house ;(b) any office appliances or road transport vehicles ;(c) any ship, machinery or plant in respect of which the deduction by wayof development rebate is allowable under section 33 ; and(d) any machinery or plant, the whole of the actual cost of which isallowed as a deduction (whether by way of depreciation or otherwise)in computing the income chargeable under the head “Profits andgains of business or profession” of any one previous year.14[Explanation.—For the purposes of this sub-section, “actual cost” means theactual cost of the ship, aircraft, machinery or plant to the assessee as reduced bythat part of such cost which has been met out of the amount released to theassessee under sub-section (6) of section 32AB.](2) The ship or aircraft or machinery or plant referred to in sub-section (1) shallbe 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 oraircraft ;(b) any new machinery or plant installed after the 31st day of March,1976,—(i) for the purposes of business of generation or distribution ofelectricity or any other form of power ; or15[(ii) in a small-scale industrial undertaking 16 for the purposes ofbusiness of manufacture 16 or production 16 of any article orthing 16 ; or(iii) in any other industrial undertaking 16 for the purposes of businessof construction, manufacture 16 or production 16 of any article orthing 16 , not being an article or thing 16 specified in the list in theEleventh Schedule :]17[Provided that nothing contained in clauses (a) and (b) shall apply inrelation to,—14. Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.15. Substituted by the Finance (No. 2) Act, 1977, w.e.f. 1-4-1978.16. For the meaning of the terms/expressions “industrial undertaking”, “manufacture”,“production” and “article or thing”, see Taxmann’s Direct Taxes Manual, Vol. 3.17. Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.