India - Income Tax Act 2010 - Saarc

1.205 CH. IV - COMPUTATION OF BUSINESS INCOME S. 34assessee, he shall, in respect of the previous year in which the business is sore-established, reconstructed or revived, be allowed a deduction of a sum byway of rehabilitation allowance equivalent to sixty per cent of the amount ofthe deduction allowable to him under clause (iii) of sub-section (1) of section32 in respect of the building, machinery, plant or furniture so damaged ordestroyed :44[Provided that no deduction under this section shall be allowed in relation to theassessment year commencing on the 1st day of April, 1985, or any subsequentassessment year.]Explanation.—In this section, “industrial undertaking” means any undertakingwhich is mainly engaged in the business of generation or distribution ofelectricity or any other form of power or in the construction of ships or in themanufacture or processing of goods or in mining.]Conditions for depreciation allowance and development rebate.34. (1) 45 [***](2) 46 [***](3)(a) The deduction referred to in section 33 shall not be allowed unless anamount equal to seventy-five per cent of the development rebate to be actuallyallowed is debited to the profit and loss account of 47 [any previous year inrespect of which the deduction is to be allowed under sub-section (2) of thatsection or any earlier previous year (being a previous year not earlier than theyear in which the ship was acquired or the machinery or plant was installed orthe ship, machinery or plant was first put to use)] and credited to a reserveaccount to be utilised by the assessee during a period of eight years nextfollowing for the purposes of the business of the undertaking, other than—(i) for distribution by way of dividends or profits ; or(ii) for remittance outside India as profits or for the creation of any assetoutside India :Provided that this clause shall not apply where the assessee is a company, beinga licensee within the meaning of the Electricity (Supply) Act, 1948 (54 of 1948) 48 ,or where the ship has been acquired or the machinery or plant has been installedbefore the 1st day of January, 1958 :49[Provided further that where a ship has been acquired after the 28th day ofFebruary, 1966, this clause shall have effect in respect of such ship as if for thewords “seventy-five”, the word “fifty” had been substituted.]44. Inserted by the Finance Act, 1984, w.e.f. 1-4-1985.45. Omitted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f.1-4-1988. Original sub-section (1) was amended by the Taxation Laws (Amendment) Act,1970, w.e.f. 1-4-1971.46. Omitted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f.1-4-1988. Original sub-section (2) was amended by the Finance Act, 1965, w.e.f. 1-4-1965,the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967, the Taxation Laws (Amendment) Act, 1970,w.e.f. 1-4-1971, the Direct Taxes (Amendment) Act, 1974, w.e.f. 1-4-1975 and the Finance(No. 2) Act, 1980, w.e.f. 1-4-1981.47. Substituted for “the relevant previous year” by the Finance Act, 1990, w.r.e.f. 1-4-1962.48. For the meaning of the expression “a licensee within the meaning of the Electricity(Supply) Act, 1948 (54 of 1948)”, see Taxmann’s Direct Taxes Manual, Vol. 3.49. Inserted by the Finance Act, 1966, w.e.f. 1-4-1966.