Finance Act, 1967
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Wear and tear allowances for certain machinery and plant in undeveloped areas. |
11.—(1) In this section— | |
“qualifying machinery or plant” means machinery or plant (other than vehicles suitable for the conveyance by road of persons or goods or the haulage by road of other vehicles) which on or after the 1st day of April, 1967, is provided for use in any undeveloped area for the purposes of a trade or profession and which, at the time it is so provided, is unused and not secondhand; | ||
“undeveloped area” has the same meaning as in the Undeveloped Areas Act, 1952. | ||
(2) Subject to the provisions of this section, where for any year of assessment a deduction falls to be allowed under section 241 of the Income Tax Act, 1967 , for wear and tear of any qualifying machinery or plant, the deduction shall, subject to subsection (6) of that section, be increased by such amount as is specified by the person to whom the deduction is to be allowed in making his claim for the deduction; and, in relation to a case in which this subsection has had effect, any reference in the Income Tax Acts to a deduction allowed under the said section 241 shall be construed as a reference to that deduction as increased under this subsection. | ||
(3) Subsection (2) shall not apply to qualifying machinery or plant which is let to a person on the terms mentioned in section 241 (2) of the Income Tax Act, 1967 , unless the contract of letting provides that the person shall or may become the owner of the machinery or plant on the performance of the contract; and where the contract so provides, but without becoming the owner of the machinery or plant he ceases to be entitled (otherwise than on his death) to the benefit of the contract so far as it relates to the machinery or plant, subsection (2) shall be deemed not to have applied in relation to the machinery or plant and there shall be made accordingly all such additional assessments and adjustments of assessments as may be appropriate. | ||
(4) Where for any year of assessment the deduction under section 241 of the Income Tax Act, 1967 , for wear and tear of any machinery or plant is increased under this section, no allowance under Chapter I of Part XV of the said Act shall be made in relation to the machinery or plant for that or any subsequent year of assessment. |