Section 8 - Amendment of section 33 - Finance Act, 1964

8. Amendment of section 33 In section 33 of the Income-tax Act,- (i) after sub-section (1), the following sub-section shall be inserted, namely:- (1A) (a) An assessee who, after the 31st day of March, 1964, acquires any ship which before the date of acquisition by him was used by any other person shall, subject to the provisions of section 34, also be allowed as a deduction a sum by way of development rebate at such rate or rates as may be prescribed, provided that the following conditions are fulfilled, namely:- (i) such ship was not previous to the date of such acquisition owned at any time by any person resident in India; (ii) such ship is wholly used for the purposes of the business carried on by the assessee; and (iii) such other conditions as may be prescribed. (b) An assessee who installs any machinery or plant (other than office appliances or rood transport vehicles) which before such installation by the assessee was used outside India by any other person shall, subject to the provisions of section 34, also be allowed as a deduction a sum by way of development rebate at such rate or rates as may be prescribed, provided that the following conditions are fulfilled, namely:- (i) such machinery or plant was not used in India at any time previous to the date of such installation by the assessee; (ii) it is imported in India by the assessee from any country outside India; (iii) no deduction on account of depreciation or development rebate in respect of such machinery or plant has been allowed or is allowable under the provisions of the Indian Income-tax Act, 1922 (11 of 1922) or 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) such machinery or plant is wholly used for the purposes of the business carried on by the assessee; and (v) such other conditions as may be prescribed. (c) The development rebate under this sub-section shall be allowed as a deduction in respect of the previous year in which the ship was acquired or the machinery or plant was installed or, if the ship, machinery or plant is first put to use in the immediately succeeding previous year, then, in respect of that previous year. ; (ii) for the words, brackets and figure under sub-section (1) wherever they occur, the words, brackets, figures and letter under sub-section (1) or sub-section (1A) shall be substituted; (iii) in sub-section (2), for the words at the rate applicable thereto under that sub-section , the words, brackets, figures and letter at the rate applicable thereto under sub-section (1) or sub-section (1A), as the case may be shall be substituted; (iv) in clause (b) of sub-section (3), for the words and figures section 33 and section 34 , the words and figures this section and section 34 shall be substituted; (v) after sub-section (4), the following sub-section shall be Inserted, namely:- (5) The Central Government, if it considers necessary or expedient so to do, may, by notification in the Official Gazette, direct that the deduction allowable under this section shall not be allowed in respect of a ship acquired or machinery or plant installed after such date, not being earlier than three years from the date of such notification, as may be specified therein. .