Income Tax Act, 1967.

Amount of assessment under section 434 to be allowed as a loss for certain purposes.

316.—(1) Subject to the provisions of this section, where a person has been assessed to tax for the year 1963-64 or a subsequent year of assessment under section 434, in respect of a payment made wholly and exclusively for the purposes of a trade or profession, the amount on which tax has been paid under that assessment shall, for the purposes of sections 309 and 311 to 315, be treated as though it were a loss sustained in that trade or profession and relief in respect thereof shall be allowed accordingly:

Provided that no relief shall be allowed under this section in respect of any such payment or any part of such payment which is not ultimately borne by the person assessed or which is charged to capital.

(2) This section shall not apply to any sum assessed under section 434 by virtue of Chapter II of Part XII or section 221 (2) (b), 288, 363 or 435.