India - Income Tax Act 2010 - Saarc

1.189 CH. IV - COMPUTATION OF BUSINESS INCOME S. 33Explanation.—Where for any assessment year development rebate is to beallowed in accordance with the provisions of sub-section (2) in respect of shipsacquired or machinery or plant installed in more than one previous year, and thetotal income of the assessee assessable for that assessment year (the total incomefor this purpose being computed without making any allowance under subsection(1) 78 [or sub-section (1A)] 79 [of this section or sub-section (1) of section33A] 80 [or any deduction under Chapter VI-A 81 [***]]) is less than the aggregate ofthe amounts due to be allowed in respect of the assets aforesaid for thatassessment year, the following procedure shall be followed, namely :—(i) the allowance under clause (ii) of sub-section (2) shall be made beforeany allowance under clause (i) of that sub-section is made; and(ii) where an allowance has to be made under clause (ii) of sub-section (2)in respect of amounts carried forward from more than one assessmentyear, the amount carried forward from an earlier assessmentyear shall be allowed before any amount carried forward from a laterassessment year.82[(3) Where, in a scheme of amalgamation, the amalgamating company sells orotherwise transfers to the amalgamated company any ship, machinery or plantin respect of which development rebate has been allowed to the amalgamatingcompany under sub-section (1) or sub-section (1A),—(a) the amalgamated company shall continue to fulfil the conditionsmentioned in sub-section (3) of section 34 in respect of the reservecreated by the amalgamating company and in respect of the periodwithin which such ship, machinery or plant shall not be sold orotherwise transferred and in default of any of these conditions, theprovisions of sub-section (5) of section 155 shall apply to the amalgamatedcompany as they would have applied to the amalgamatingcompany had it committed the default; and(b) the balance of development rebate, if any, still outstanding to theamalgamating company in respect of such ship, machinery or plantshall be allowed to the amalgamated company in accordance with theprovisions of sub-section (2), so, however, that the total period forwhich the balance of development rebate shall be carried forward inthe assessments of the amalgamating company and the amalgamatedcompany shall not exceed the period of eight years specified in subsection(2) and the amalgamated company shall be treated as theassessee in respect of such ship, machinery or plant for the purposesof this section and section 34.]78. Inserted by the Finance Act, 1964, w.e.f. 1-4-1964.79. Inserted by the Finance Act, 1965, w.e.f. 1-4-1965.80. Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.81. “or section 280-O” omitted by the Finance Act, 1988, w.e.f. 1-4-1988.82. Substituted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967. Sub-section (3) was firstamended by the Finance Act, 1964, w.e.f. 1-4-1964 and then by the Finance Act, 1966, w.e.f.1-4-1966.