Investment allowance under section 32A of the Income-tax Act, 1961-Item 21 of the Ninth Schedule-Textiles made wholly or mainly of cotton-Clarification regarding

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..... ular No. 213 Dated 14/3/1977 To All Commissioners of Income-tax Sir, Section 32A of the Income-tax Act, 1961, introduced by the Finance Act, 1976, provides for a deduction at a specified rate by way of investment allowance in respect, inter alia, of machinery or plant installed after 31st March, 1976, for the purposes of business of construction, manufacture or production .....

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..... ein that if the income attributable to such activities is not less than 51 per cent. of the total income, it would be treated as an "industrial company". Keeping this in view, it can be said that for the purposes of item 21 of the Ninth Schedule to the Income-tax Act, 1961, the cotton content of the textiles manufactured should not be less than 51 per cent. The percentage of cotton content will be .....

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..... duced by the use of the machinery in respect of which investment allowance is allowable should be 51 per cent. or more. 4. The above legal position may please be brought to the notice of all the officers working in your charge for their information and guidance. - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanagement - .....

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