Section 17 - Amendment of section 43 - Finance (No. 2) Act, 1996

17. Amendment of section 43 In section 43 of the Income-tax Act, in clause (1), after Explanation 4, the following Explanation shall be inserted with effect from the 1st day of October, 1996, namely :- Explanation 4A : Where before the date of acquisition by the assessee (hereinafter referred to as the first mentioned person), the assets were at any time used by any other person (hereinafter referred to as the second mentioned person) for the purposes of his business or profession and depreciation allowance has been claimed in respect of such assets in the case of the second mentioned person and such person acquires on lease, hire or otherwise assets from the first mentioned person, then, notwithstanding anything contained in Explanation 3, the actual cost of the transferred assets, in the case of first mentioned person, shall be the same as the written down value of the said assets at the time of transfer thereof by the second mentioned person. .