Investment allowance under section 32A-Tea companies-Creation of reserve

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of reserve. Attention is invited to the provisions of section 32A of the Income-tax Act, 1961, which provide for the grant of investment allowance in respect of new machinery and plant installed, inter alia, for the purposes of construction, manufacture or production of articles or things not included in Schedule XI to the Income-tax Act. The allowance which is equal to 25 per cent. of the cost .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ast with regard to the quantum of reserve to be created for the grant of development rebate in respect of new machinery and plant installed by tea companies. It was clarified by the Board's Circular letter F. No. 1(8)-58-PL dated 1st November, 1958, that in the case of a tea company, it would be sufficient compliance if the tea company created a reserve equal to 75 per cent. of the amount of devel .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X