TMI BlogInvestment deposit accountX X X X Extracts X X X X X X X X Extracts X X X X ..... ase of any new ship, new aircraft, new machinery or plant, without depositing any amount in the deposit account under clause ( a ), in accordance with, and for the purposes specified in, a scheme (hereafter in this section referred to as the scheme) to be framed by the Central Government, or if the assessee is carrying on the business of growing and manufacturing tea in India, to be approved in this behalf by the Tea Board, the assessee shall be allowed a deduction 2 [ (such deduction being allowed before the loss, if any, brought forward from earlier years is set off under section 72) ] of- ( i ) a sum equal to the amount, or the aggregate of the amounts, so deposited and any amount so utilised; or ( ii ) a sum equal to twenty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been allowed or is allowable under this Act in computing the total income of any person for any period prior to the date of the installation of the machinery or plant by the assessee; ( iv ) Tea Board means the Tea Board established under section 4 of the Tea Act, 1953 (29 of 1953). ] (3) 8 [ The profits of business or profession of an assessee for the purposes of sub-section (1) shall] be an amount arrived at after deducting an amount equal to the depreciation computed in accordance with the provisions of sub-section (1) of section 32 from the amounts of profits computed in accordance with the requirements of Parts II and III of the 9 [ Schedule VI ] to the Companies Act, 1956 (1 of 1956), 10 [ as increased by the aggre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dertaking, other than a small-scale industrial undertaking, as defined in section 80HHA, for the purposes of business of construction, manufacture or production of any article or thing specified in the list in the Eleventh Schedule .] (5) The deduction under sub-section (1) shall not be admissible unless the accounts of the business or profession of the assessee for the previous year relevant to the assessment year for which the deduction is claimed have been audited by an accountant as defined in the Explanation below sub-section (2) of section 288 24 [ before the specified date referred to in section 44AB and the assessee furnishes by that date ] the report of such audit in the prescribed form duly signed and verified by such a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le of such amount shall be deemed to be the profits and gains of business or profession of that previous year and shall accordingly be chargeable to income-tax as the income of that previous year, as if the business had not closed or, as the case may be, the firm had not been dissolved. ] 18 [ (5B) Where any amount standing to the credit of the assessee in the deposit account is utilised by the assessee for the purposes of any expenditure in connection with the 19 [ *** ] business or profession in accordance with the scheme, such expenditure shall not be allowed in computing the income chargeable under the head Profits and gains of business or profession .] (6) Where any amount, standing to the credit of the assessee in the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956); or ( ii ) where the sale or transfer of the asset is made in connection with the succession of a firm by a company in the business or profession carried on by the firm as a result of which the firm sells or otherwise transfers to the company any asset and the scheme continues to apply to the company in the manner applicable to the firm. Explanation .-The provisions of clause ( ii ) of the proviso shall apply only where- ( i ) all the properties of the firm relating to the business or profession immediately before the succession become the properties of the company; ( ii ) all the liabilities of the firm rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... griculture and Rural Development Act, 1981 (61 of 1981); ( ii ) in the case of other assessees, the Industrial Development Bank of India established under the Industrial Development Bank of India Act, 1964 (18 of 1964) and includes such bank or institution as may be specified in the scheme in this behalf. ] ------------------------------------- Notes :- 1. Inserted by the Finance Act, 1986, w.e.f. 1-4-1987. 2. Inserted by the Finance Act, 1987, w.e.f. 1-4-1987. 3. Word eligible omitted by the Finance Act, 1989, w.e.f. 1-4-1991. 4. Inserted by the Finance Act, 1987, w.e.f. 1-4-1987. 5. Inserted by the Finance Act, 1990, w.e.f. 1-4-1990. 6. Omitted by the Finance Act, 1989, w.e.f. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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