India - Income Tax Act 2010 - Saarc

S. 43 I.T. ACT, 1961 1.26863[Provided that where the actual cost of an asset, being a motor carwhich is acquired by the assessee after the 31st day of March, 1967,64[but before the 1st day of March, 1975,] and is used otherwise thanin a business of running it on hire for tourists, exceeds twenty-fivethousand rupees, the excess of the actual cost over such amount shallbe ignored, and the actual cost thereof shall be taken to be twenty-fivethousand rupees.]Explanation 1.—Where an asset is used in the business after it ceasesto be used for scientific research related to that business and adeduction has to be made under 65 [clause (ii) of sub-section (1)] ofsection 32 in respect of that asset, the actual cost of the asset to theassessee shall be the actual cost to the assessee as reduced by theamount of any deduction allowed under clause (iv) of sub-section (1)of section 35 or under any corresponding provision of the IndianIncome-tax Act, 1922 (11 of 1922).66[Explanation 2.—Where an asset is acquired by the assessee by wayof gift or inheritance, the actual cost of the asset to the assessee shallbe the actual cost to the previous owner, as reduced by—(a) the amount of depreciation actually allowed under this Act andthe corresponding provisions of the Indian Income-tax Act, 1922(11 of 1922), in respect of any previous year relevant to theassessment year commencing before the 1st day of April, 1988;and(b) the amount of depreciation that would have been allowable to theassessee for any assessment year commencing on or after the 1stday of April, 1988, as if the asset was the only asset in the relevantblock of assets.]Explanation 3.—Where, before the date of acquisition by the assessee,the assets were at any time used by any other person for the purposesof his business or profession and the 67 [Assessing] Officer is satisfiedthat the main purpose of the transfer of such assets, directly orindirectly to the assessee, was the reduction of a liability to incometax(by claiming depreciation with reference to an enhanced cost), theactual cost to the assessee shall be such an amount as the 67 [Assessing]63. Substituted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968. Original proviso was insertedby the Finance Act, 1966, w.e.f. 1-4-1966.64. Inserted by the Finance Act, 1975, w.e.f. 1-4-1975.65. Substituted for “clause (i), clause (ii) or clause (iii) of sub-section (1) or sub-section (1A)”by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 1-4-1988.Italicised words were inserted by the Taxation Laws (Amendment) Act, 1970, w.e.f.1-4-1971.66. Substituted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986,w.e.f. 1-4-1988.67. Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.