Finance Act, 1956
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Amendment of allowances under Rules 6 and 7 of Rules applicable to Cases I and II of Schedule D. |
24.—(1) Where, in charging the profits or gains of a trade, a deduction is to be allowed to any person under paragraph (1) of Rule 6 of the Rules applicable to Cases I and II of Schedule D of the Income Tax Act, 1918, as representing the diminished value by reason of wear and tear during the year of assessment of any machinery or plant, the value at the commencement of the year of such machinery or plant shall be taken to be the actual cost to that person of such machinery or plant reduced by the total of any deductions allowed under the said Rule 6 and any initial allowances made under this Part of this Act for previous years of assessment. | |
(2) Paragraph (2) of Rule 6 of the Rules applicable to Cases I and II of Schedule D of the Income Tax Act, 1918, as amended by section 2 of the Finance Act, 1944 (No. 18 of 1944), paragraphs (3) and (5) of the said Rule 6, Rule 7 of the said Rules and section 4 of the Finance Act, 1937 (No. 18 of 1937), shall apply in relation to an initial allowance as they apply in relation to deductions allowable in respect of wear and tear of machinery or plant. | ||
(3) In paragraph (6) of Rule 6 of the Rules applicable to Cases I and II of Schedule D of the Income Tax Act, 1918, the expression “the deductions allowed on that account for any previous years to the person by whom the trade is carried on”, and the expression “the deductions” where that expression occurs before the word “exceed”, shall each be construed as including a reference to any initial allowance made, in relation to the machinery or plant, to the person by whom the trade is carried on. |