Coming into effect of provisions of Sec. 80-VVA. - Income Tax - 1672/CBDT

INSTRUCTION NO. 1672/CBDT Dated: June 12, 1985 Attention is invited to Board's Inst. of even No. dated 12th Sept., 1985 wherein the Board have clarified that the interest relating to the period after commencement of production of installation of machinery cannot be capitalised and, therefore, no investment allowance or depreciation can be allowed on the capitalised amount consisting of such interest including future interest thereon. 2. In para 2 of the said Instruction a reference has been made to provisions of sec. 80-VVA of the Income-tax Act, which are effective from 1-4-1984 but have been mentioned as effective from 1-4-1985, through oversight. This para may please be treated to have been modified to this extent. The above instructions may please be brought to the notice of all the Officers working under you. Hindi version will follow shortly.