1(1) In computing the profits and gains of the business of a domestic company in relation to the previous year relevant to the assessment year commencing on the 1st day of April, 1992, where effect is to be given to the unabsorbed depreciation allowance or unabsorbed investment allowance or both in relation to any previous year relevant to the assessment year commencing on or before the 1st day of April, 1991, the deduction shall be restricted to two-third of such allowance or allowances and the balance,-
(a) where it relates to depreciation allowance, be added to the depreciation allowance for the previous year relevant to the assessment year commencing on the 1st day of April, 1993 and be deemed to be part of that allowance or if there is no such allowance for that previous year, be deemed to be the allowance for that previous year and so on for the succeeding previous years;
(b) where it relates to investment allowance, be carried forward to the assessment year commencing on the 1st day of April, 1993 and the balance of the investment allowance, if any, still outstanding shall be carried forward to the following assessment year and where the period of eight years has expired before the portion of such balance is adjusted, the said period shall be extended beyond eight years till such time the portion of the said balance is absorbed in the profits and gains of the business of the domestic company.
(2) For the assessment year commencing on the 1st day of April, 1992, the provisions of sub-section (2) of section 32 and sub-section (3) of section 32Ashall apply to the extent such provisions are not inconsistent with the provisions of sub-section (1) of this section.
(3) Nothing contained in sub-section (1) shall apply where the amount of unabsorbed depreciation allowance or of the unabsorbed investment allowance, as the case may be, or the aggregate amount of such allowances in the case of a domestic company is less than one lakh rupees.
(4) Nothing contained in sections 234B and 234Cshall apply to any shortfall
in the payment of any tax due on the assessed tax or, as the case may be,
returned income where such shortfall is on account of restricting the amount of
depreciation allowance or investment allowance under this section and the
assessee has paid the amount of shortfall before furnishing the return of income
under sub-section (1) of section 139.
--------------------
1. Ins. by Act 18 of 1992, s. 13 (w.e.f. 1-4-1992).
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