Section 5 - Amendment of section 32 - Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986

5. Amendment of section 32. In section 32 of the Income-tax Act. with effect from the 1st day of April, 1988, - (1) in sub-section (1),- (a) clause (i) shall be omitted; (b) in clause (ii),- (i) for the opening paragraph, the following shall be substituted, namely :- in the case of any block of assets, such percentage on the written down value thereof as may be prescribed; ; (ii) in the second proviso, the words, brackets and figures or clause (iii) shall be omitted; (iii) after the second proviso, the following Explanations shall be inserted, namely :- Explanation 1.- Where the business or profession of the assessee is carried on in a building not owned by him but in respect of which the assessee holds a lease or other right of occupancy and any capital expenditure is incurred by the assessee for the purposes of the business or profession on the construction of any structure or doing of any work in or in relation to, and by way of renovation or extension of, or improvement to, the building, then, the provisions of this clause shall apply as if the said structure or work is a building owned by the assessee. Explanation 2.- For the purposes of this clause written down value of the block of assets shall have the same meaning as in clause (c) of sub-section (6) of section 43; ; (c) clauses (iia), (iii), (iv), (v) and (vi) shall be omitted; (2) sub-section (1A) shall be omitted; (3) in sub-section (2), for the words, brackets, figures and letters under clause (i) or clause (ii) or clause (iia) or clause (iv) or clause (v) or clause (vi) of sub-section (1) or under clause (i) of sub-section (1A) , the words, brackets and figures under clause (ii) of sub-section (1) shall be substituted.