Finance Act, 1970
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Amendment of section 241 of Income Tax Act, 1967. |
14.—(1) In this section— | |
“wear and tear allowance” means a deduction allowed under section 241 of the Income Tax Act, 1967 , otherwise than by virtue of section 11 of the Finance Act, 1967 , or section 4 of the Finance Act, 1969 ; | ||
“normal wear and tear allowance” means such wear and tear allowance or greater wear and tear allowance, if any, as would have fallen to be made to a person in respect of any machinery or plant used by him during any year of assessment if all the conditions specified in subsection (3) had been fulfilled in relation to that year. | ||
(2) Where for any year of assessment (including a year of assessment before the year 1970-71) during which any machinery or plant has been used by a person, no wear and tear allowance or a wear and tear allowance less than the normal wear and tear allowance is made to that person in respect of the machinery or plant, the normal wear and tear allowance shall be deemed, for the purposes of subsections (6) and (7) of the said section 241, to have been made to him in respect of the machinery or plant for that year. | ||
(3) The conditions referred to in subsection (1) are: | ||
(a) that the trade had been carried on by the person in question ever since the date on which he acquired the machinery or plant and had been so carried on by him in such circumstances that the full amount of the profits or gains thereof was liable to be charged to income tax, | ||
(b) that the trade had at no time consisted wholly or partly of exempted trading operations within the meaning of Chapter I of Part XXV of the Income Tax Act, 1967 , | ||
(c) that the machinery or plant had been used by him solely for the purposes of the trade ever since that date, | ||
(d) that a proper claim had been duly made by him for wear and tear allowance in respect of the machinery or plant for every relevant year of assessment, and | ||
(e) that no question arose in connection with any year of assessment as to there being payable to him, directly or indirectly, any sums in respect of, or taking account of, the wear and tear of the machinery or plant. | ||
(4) The preceding provisions of this section shall, with any necessary modifications, apply in relation to professions, employments and offices as they apply in relation to trades. | ||
(5) Section 241 (7) of the Income Tax Act, 1967 , is hereby amended by the substitution of “trade, profession, employment or office” for “trade or profession”. |