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Section 5 - Amendment of section 32 - Taxation Laws (Amendment) Act, 1970Extract 5. Amendment of section 32. In section 32 of the Income-tax Act,- (a) after sub-section (1), the following sub-section shall be inserted, namely: (1A) Where the business or profession is carried on in a building not owned by the assessee but in respect of which the assessee holds a lease or other right of occupancy and any capital expenditure is incurred by the assessee for the purposes of the business or profession after the 31st day of March, 1970 on the construction of any structure or doing of any work in or in relation to, and by way of renovation or extension of, or improvement to, the building, then, in respect of depreciation of such structure or work, the following deductions shall, subject to the provisions of section 34, be allowed- (i) such percentage on the written down value of the structure or work as may in any case or class of cases be prescribed; (ii) in the case of any such structure or work which is sold, discarded, demolished, destroyed or is surrendered as a result of the determination of the lease or other right of occupancy in respect of the building in the previous year (other than the previous year in which it is constructed or done) the amount by which the moneys payable in respect of such structure or work together with the amount of scrap value, if any, fall short of the written down value thereof: Provided that such deficiency is actually written off in the books of the assessee. Explanation. For the purposes of this clause,- (i) moneys payable , in respect of any structure or work, includes (a) any insurance or compensation moneys payable in respect thereof; (b) where the structure or work is sold, the price for which it is sold; and (ii) sold shall have the meaning assigned to it in the Explanation to clause (iii) of sub-section (1). ; (b) in sub-section (2), after the words, brackets and figure of sub-section (1) , the words, brackets, figures and letter or under clause (i) of sub-section (1A) shall be inserted.
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