India - Income Tax Act 2010 - Saarc

1.181 CH. IV - COMPUTATION OF BUSINESS INCOME S. 32ABProvided that nothing contained in sub-section (1) shall entitle theassessee to claim deduction in respect of a ship or aircraft ormachinery or plant referred to in this clause in any previous yearexcept the previous year relevant to the assessment year commencingon the 1st day of April, 1989;(b) a new ship or new aircraft acquired or any new machinery or plantinstalled after the 31st day of March, 1988, but before such date as theCentral Government, if it considers necessary or expedient so to do,may, by notification in the Official Gazette 41 , specify in this behalf.(8C) Subject to the provisions of clause (ii) of sub-section (3), where a deductionhas been allowed to an assessee under sub-section (1) in any assessment year, nodeduction shall be allowed to the assessee under section 32AB in the saidassessment year (hereinafter referred to as the initial assessment year) and ablock of further period of four years beginning with the assessment yearimmediately succeeding the initial assessment year.](9) [Omitted by the Finance Act, 1990, w.r.e.f. 1-4-1976.]42[Investment deposit account.32AB. (1) Subject to the other provisions of this section, where an assessee,whose total income includes income chargeable to tax under the head“Profits and gains of business or profession”, has, out of such income,—(a) deposited any amount in an account (hereafter in this section referredto as deposit account) maintained by him with the DevelopmentBank before the expiry of six months from the end of theprevious year or before furnishing the return of his income, whicheveris earlier; or(b) utilised any amount during the previous year for the purchase of anynew ship, new aircraft, new machinery or plant, without depositingany amount in the deposit account under clause (a),in accordance with, and for the purposes specified in, a scheme 43 (hereafter inthis section referred to as the scheme) to be framed by the Central Government,or if the assessee is carrying on the business of growing and manufacturing teain India, to be approved in this behalf by the Tea Board, the assessee shall beallowed a deduction 44 [(such deduction being allowed before the loss, if any,brought forward from earlier years is set off under section 72)] of—(i) a sum equal to the amount, or the aggregate of the amounts, sodeposited and any amount so utilised; or(ii) a sum equal to twenty per cent of the profits of 45 [***] business orprofession as computed in the accounts of the assessee audited inaccordance with sub-section (5),whichever is less :41. See footnote 11 on page 1.172 ante.42. Inserted by the Finance Act, 1986, w.e.f. 1-4-1987.43. Investment Deposit Account Scheme, 1986 is the scheme framed by the Governmentunder sub-section (1). For details of the Scheme, see Taxmann’s Direct Taxes Circulars.44. Inserted by the Finance Act, 1987, w.e.f. 1-4-1987.45. Word “eligible” omitted by the Finance Act, 1989, w.e.f. 1-4-1991.