Depreciation-Initial depreciation under sec. 32(1)(iv) and investment allowance under sec. 32A of the Income-tax Act, 1961-Definition of "small scale industrial undertaking"- Clarification regarding

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..... cale industrial undertaking"- Clarification regarding Circular No. 314 Dated 17/9/1981 To All Commissioners of Income-tax. Subject: Depreciation-Initial depreciation under sec. 32(1)(iv) and investment allowance under sec. 32A of the Income-tax Act, 1961-Definition of "small scale industrial undertaking"- Clarification regarding. Sir, Section 32A was introduced by the Finance Act, 1976, to .....

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..... cording to the norms laid down by the Department of Industries in this regard. According to the Department of Industries, the cost of generating sets and of extra transformers, etc., which have to be installed by the assessee as required by the State Electricity Boards will be excluded. 3. The question has been considered in consultation with the Ministry of Law. There is no express or implied le .....

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..... mutandis, in the case of "initial depreciation" under section 32(1)(vi). However, the definition of "small scale industrial undertaking" for the purpose of initial depreciation given in Explanation (3) to section 32(1)(vi) is slightly different from that given for the purpose of investment allowance inasmuch as the cost of tools, jigs, dies and moulds is not to be excluded in arriving at the mone .....

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