India - Income Tax Act 2010 - Saarc

S. 34A I.T. ACT, 1961 1.206Explanation.—[Omitted by the Finance Act, 1990, w.r.e.f. 1-4-1962. Earlier, it wasinserted by the Finance Act, 1966, w.r.e.f. 1-4-1962.](b) If any ship, machinery or plant is sold or otherwise transferred by the assesseeto any person at any time before the expiry of eight years from the end of theprevious year in which it was acquired or installed, any allowance made undersection 33 or under the corresponding provisions of the Indian Income-tax Act,1922 (11 of 1922), in respect of that ship, machinery or plant shall be deemed tohave been wrongly made for the purposes of this Act, and the provisions of subsection(5) of section 155 shall apply accordingly :Provided that this clause shall not apply—(i) where the ship has been acquired or the machinery or plant has beeninstalled before the 1st day of January, 1958 ; or(ii) where the ship, machinery or plant is sold or otherwise transferred bythe assessee to the Government, a local authority, a corporationestablished by a Central, State or Provincial Act or a 50 Governmentcompany as defined in section 617 of the Companies Act, 1956 (1 of1956) ; or(iii) where the sale or transfer of the ship, machinery or plant is made inconnection with the amalgamation or succession, referred to in subsection(3) or sub-section (4) of section 33.51[Restriction on unabsorbed depreciation and unabsorbed investment allowancefor limited period in case of certain domestic companies.34A. (1) In computing the profits and gains of the business of a domesticcompany in relation to the previous year relevant to the assessment yearcommencing on the 1st day of April, 1992, where effect is to be given to theunabsorbed depreciation allowance or unabsorbed investment allowance orboth in relation to any previous year relevant to the assessment year commencingon or before the 1st day of April, 1991, the deduction shall be restricted to twothirdof such allowance or allowances and the balance,—(a) where it relates to depreciation allowance, be added to the depreciationallowance for the previous year relevant to the assessment yearcommencing on the 1st day of April, 1993 and be deemed to be partof that allowance or if there is no such allowance for that previousyear, be deemed to be the allowance for that previous year and so onfor the succeeding previous years ;(b) where it relates to investment allowance, be carried forward to theassessment year commencing on the 1st day of April, 1993 and thebalance of the investment allowance, if any, still outstanding shall becarried forward to the following assessment year and where theperiod of eight years has expired before the portion of such balanceis adjusted, the said period shall be extended beyond eight years tillsuch time the portion of the said balance is absorbed in the profits andgains of the business of the domestic company.(2) For the assessment year commencing on the 1st day of April, 1992, theprovisions of sub-section (2) of section 32 and sub-section (3) of section 32A shall50. For definition of “Government company”, see footnote 71 on p. 1.23 ante.51. Inserted by the Finance Act, 1992, w.e.f. 1-4-1992.