1 * * * * *
(3) (a) The deduction referred to in section 33 shall not be allowed unless an
amount equal to seventy-five per cent.. of the development rebate to be actually
allowed is debited to the profit and loss account of 2 any previous year in
respect of which the deduction is to be allowed under sub-section (2) of that
section or any earlier previous year (being a previous year not earlier than the
year in which the ship was acquired or the machinery or plant was installed or
the ship, machinery or plant was first put to use) and credited to a reserve
account to be utilised by the assessee during a period of eight years next
following for the purposes of the business of the undertaking, other than-
(i) for distribution by way of dividends or profits; or
(ii) for remittance outside India as profits or for the creation of any asset
outside India:
Provided that this clause shall not apply where the assessee is a company, being
a licensee within the meaning of the Electricity (Supply) Act, 1948 (54 of
1948), or where the ship has been acquired or the machinery or plant has been
installed before the 1st day of January, 1958:
3 Provided further that where a ship has been acquired after the 28th day of February, 1966, this clause shall have effect in respect of such ship as if for the words "seventy-five", the word "fifty" had been substituted.
4 * * * * *
(b) If any ship, machinery or plant is sold or otherwise transferred by the assessee to any person at any time before the expiry of eight years from the end of the previous year in which it was acquired or installed, any allowance made under section 33or under the corresponding provisions of the Indian Income-tax Act, 1922 (11 of 1922), in respect of that ship, machinery or plant shall be deemed to have been wrongly made for the purposes of this Act, and the provisions of sub-section (5) of section 155shall apply accordingly:
Provided that this clause shall not apply-
(i) where the ship has been acquired or the machinery or plant has been installed before the 1st day of January, 1958; or
(ii) where the ship, machinery or plant is sold or otherwise transferred by the assessee to the Government, a local authority, a corporation established by a Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956); or
(iii) where the sale or transfer of the ship, machinery or plant is made in
connection with the amalgamation or succession, referred to in sub-section (3)
or sub-section (4) of section 33.
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1. Sub-sections (1) and (2) omitted by 46 of 1986, s. 6 (w.e.f. 1-4-1988).
2. Subs. by Act 12 of 1990, s. 11, for "the relevant previous year" (w.e.f. 1-4-1962).
3. Ins. by Act 13 of 1966, s. 9 (w.e.f. 1-4-1966).
4. The Explanation omitted by Act 12 of 1990, s. 11 (w.e.f. 1-4-1962).
Section 33A Development allowance
Section 33AB Tea development account, coffee development account and rubber development account
Section 33ABA Site Restoration Fund
Section 33AC Reserves for shipping business
Section 33B Rehabilitation allowance
Section 34 Conditions for depreciation allowance and development rebate