India - Income Tax Act 2010 - Saarc

1.191 CH. IV - COMPUTATION OF BUSINESS INCOME S. 33A87[Development allowance.8833A. (1) In respect of planting of tea bushes on any land in India owned by anassessee who carries on business of growing and manufacturing tea inIndia, a sum by way of development allowance equivalent to—(i) where tea bushes have been planted on any land not planted at anytime with tea bushes or on any land which had been previouslyabandoned, 89 [fifty] per cent of the actual cost of planting; and(ii) where tea bushes are planted in replacement of tea bushes that havedied or have become permanently useless on any land alreadyplanted, 90 [thirty] per cent of the actual cost of planting,shall, subject to the provisions of this section, be allowed as a deduction 91 [in themanner specified hereunder, namely :—(a) the amount of the development allowance shall, in the first instance,be computed with reference to that portion of the actual cost ofplanting which is incurred during the previous year in which the landis prepared for planting or replanting, as the case may be, and in theprevious year next following, and the amount so computed shall beallowed as a deduction in respect of such previous year next following;and(b) thereafter, the development allowance shall again be computed withreference to the actual cost of planting, and if the sum so computedexceeds the amount allowed as a deduction under clause (a), theamount of the excess shall be allowed as a deduction in respect of thethird succeeding previous year next following the previous year inwhich the land has been prepared for planting or replanting, as thecase may be :]92[Provided that no deduction under clause (i) shall be allowed unless the plantinghas commenced after the 31st day of March, 1965, and been completed beforethe 1st day of April, 1990 :Provided further that no deduction shall be allowed under clause (ii) unless theplanting has commenced after the 31st day of March, 1965, and been completedbefore the 1st day of April, 1970.](2) Where the total income of the assessee assessable for the assessment yearrelevant to 93 [the previous year in respect of which the deduction is required to87. Inserted by the Finance Act, 1965, w.e.f. 1-4-1965.88. See also Circular No. 325, dated 3-2-1982. For details, see Taxmann’s Master Guide toIncome-tax Act.89. Substituted for “forty” by the Finance Act, 1966, w.e.f. 1-4-1966.90. Substituted for “twenty”, ibid.91. Substituted for “in respect of the third succeeding previous year next following theprevious year in which the land is prepared for planting or replanting, as the case may be”,ibid.92. Substituted by the Finance Act, 1990, w.e.f. 1-4-1990.93. Substituted for “the third succeeding previous year next following the previous year inwhich the land has been prepared” by the Finance Act, 1966, w.e.f. 1-4-1966.