India - Income Tax Act 2010 - Saarc

S. 33 I.T. ACT, 1961 1.190(4) Where a firm is succeeded to by a company in the business carried on by itas a result of which the firm sells or otherwise transfers to the company any ship,machinery or plant, the provisions of clauses (a) and (b) of sub-section (3) shall,so far as may be, apply to the firm and the company.Explanation.—The provisions of this clause shall apply only where—(i) all the property of the firm relating to the business immediatelybefore the succession becomes the property of the company;(ii) all the liabilities of the firm relating to the business immediatelybefore the succession become the liabilities of the company; and(iii) all the shareholders of the company were partners of the firmimmediately before the succession.83[(5) The Central Government, if it considers it necessary or expedient so to do,may, by notification 84 in the Official Gazette, direct that the deduction allowableunder this section shall not be allowed in respect of a ship acquired or machineryor plant installed after such date, not being earlier than three years from the dateof such notification, as may be specified therein.]85[(6) Notwithstanding anything contained in the foregoing provisions of thissection, no deduction by way of development rebate shall be allowed in respectof any machinery or plant installed after the 31st day of March, 1965, in any officepremises or any residential accommodation, including any accommodation inthe nature of a guest-house:]86[Provided that the provisions of this sub-section shall not apply in the case of anassessee being an Indian company, in respect of any machinery or plant installedby it in premises used by it as a hotel, where the hotel is for the time beingapproved in this behalf by the Central Government.]83. Inserted by the Finance Act, 1964, w.e.f. 1-4-1964.84. In terms of Notification No. SO 2167, dated 28-5-1971 issued under sub-section (5) ofsection 33, the grant of development rebate has been discontinued in respect of shipsacquired or machinery or plant installed after 31-5-1974. However, section 16 of theFinance Act, 1974, as amended by section 30 of the Finance Act, 1975, has made anindependent provision for the continuance of development rebate for a limited period incertain cases. As a result grant of the rebate was continued, subject to certain conditions,for limited period, i.e., from 1-6-1974 to 31-5-1977 in respect of—(a) ship which was acquired after 31-5-1974 but before 1-1-1977;(b) any machinery or plant [other than mentioned in (c) below] which was installedafter 31-5-1974 but before 1-6-1975; and(c) coal-fired equipment or any machinery or plant for converting oil-fired equipmentinto coal-fired equipment which was installed after 31-5-1974 but before 1-6-1977.See Taxmann’s Direct Taxes Circulars.85. Inserted by the Finance Act, 1965, w.e.f. 1-4-1965.86. Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.