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TMI BlogDevelopment allowanceX X X X Extracts X X X X X X X X Extracts X X X X ..... g, shall, subject to the provisions of this section, be allowed as a deduction 4[in the manner specified hereunder, namely :- (a) the amount of the development allowance shall, in the first instance, be computed with reference to that portion of the actual cost of planting which is incurred during the previous year in which the land is prepared for planting or replanting, as the case may be, and in the previous year next following, and the amount so computed shall be allowed as a deduction in respect of such previous year next following; and (b) thereafter, the development allowance shall again be computed with reference to the actual cost of planting, and if the sum so computed exceeds the amount allowed as a deduction under clause (a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which it has not been allowed as aforesaid, shall be carried forward to the following assessment year, and the development allowance to be allowed for the following assessment year shall be such amount as is sufficient to reduce the total income of the assessee assessable for that assessment year, computed in the manner aforesaid, to nil, and the balance of the development allowance, if any, still outstanding shall be carried forward to the following assessment year and so on, so, however, that no portion of the development allowance shall be carried forward for more than eight assessment years immediately succeeding the assessment year in which the deduction was first allowable. Explanation.-Where for any assessment year development allow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eserve account to be utilised by the assessee during a period of eight years next following for the purposes of the business of the undertaking, other than- (a) for distribution by way of dividends or profits; or (b) for remittance outside India as profits or for the creation of any asset outside India; and (iii) such other conditions as may be prescribed. (4) If any such land is sold or otherwise transferred by the assessee to any person at any time before the expiry of eight years from the end of the previous year in which the deduction under sub-section (1) was allowed, any allowance under this section shall be deemed to have been wrongly made for the purposes of this Act, and the provisions of sub-section (5A) of section 155 shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pment allowance shall be carried forward in the assessments of the amalgamating company and the amalgamated company shall not exceed the period of eight years specified in sub-section (2) and the amalgamated company shall be treated as the assessee in respect of such land for the purposes of this section.] (6) Where a firm is succeeded to by a company in the business carried on by it as a result of which the firm sells or otherwise transfers to the company any land on which development allowance has been allowed, the provisions of clauses (a) and (b) of sub-section (5) shall, so far as may be, apply to the firm and the company. Explanation.-The provisions of this sub-section shall apply if the conditions laid down in the Explanation to su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he purposes of this section, an assessee having a leasehold or other right of occupancy in any land shall be deemed to own such land and where the assessee transfers such right, he shall be deemed to have sold or otherwise transferred such land.] ------------------------------ Notes :- 1. Inserted by the Finance Act, 1965, w.e.f. 1-4-1965. 2. Substituted for "forty" by the Finance Act, 1966, w.e.f. 1-4-1966. 3. Substituted for "twenty" by the Finance Act, 1966, w.e.f. 1-4-1966. 4. Substituted for "in respect of the third succeeding previous year next following the previous year in which the land is prepared for planting or replanting, as the case may be" by the Finance Act, 1966, w.e.f. 1-4-1966. 5. Subs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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