Finance Act, 1969

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Deductions in respect of decimalised machinery or plant.

4.—(1) In this section—

“conversion”, in relation to machinery or plant, means any conversion or adaptation of the machinery or plant which is made because of the introduction in the State of a system of decimal currency;

“decimalised machinery or plant” means machinery or plant—

(a) which before the 6th day of April, 1971, is provided for use in any area other than an undeveloped area for the purposes of a trade or profession and which, at the time it is so provided, is unused and not secondhand,

(b) which is of a kind which is so provided because of the introduction in the State of a system of decimal currency, and

(c) which is not so provided for use in the manufacture of machinery or plant;

“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 decimalised 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 decimalised 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, if the person 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, but without having become the owner of the machinery or plant, subsection (2) shall be deemed not to have applied in relation to the machinery or plant, and, accordingly, there shall be made 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.

(5) Where before the 6th day of April, 1971, a person carrying on a trade or profession incurs expenditure on the conversion of machinery or plant which is in use for the purposes of the trade or profession and is not in use for the purpose of manufacturing machinery or plant, the amount of the said expenditure shall (if not otherwise so allowable) be allowable as a deduction in computing for the purposes of income tax the profits or gains or losses of the trade or profession, and, where it is so allowed, shall not be regarded as capital expenditure for any of the purposes of the Income Tax Acts.