Finance Act, 1973
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Amendment of section 272 of Income Tax Act, 1967. |
11.—(1) Section 272 of the Income Tax Act, 1967 , is hereby amended by the substitution for subsection (5) of the following subsections: | |
“(5) Where the aggregate amount of initial allowances and wear and tear allowances made to any person in respect of any machinery or plant exceeds the actual amount of the expenditure incurred by him on the provision of the said machinery or plant, | ||
the amount of such excess (in this subsection referred to as the excess amount) shall, on the occurrence of an event falling within any of the paragraphs (a), (b) or (c) of subsection (1), be deemed to be a payment of an equal amount received by the person on account of sale, insurance, salvage or compensation moneys and shall be added to any other such moneys received in respect of the said machinery or plant and a balancing charge shall be made, and the amount on which it is made shall be an amount equal to— | ||
(a) where there are no sale, insurance, salvage or compensation moneys, the said excess amount, or | ||
(b) where there are sale, insurance, salvage or compensation moneys, the aggregate of such moneys and the said excess amount. | ||
(5A) Where, as respects any machinery or plant, an event falling within any of the paragraphs (a), (b) or (c) of subsection (1) is followed by another event falling within any of those paragraphs, any balancing allowance or balancing charge made to or on a person by virtue of the happening of the later event shall take account of any balancing allowance or balancing charge previously made to or on that person in respect of the expenditure incurred by him on the provision of that machinery or plant.”. | ||
(2) This section shall have effect where, as respects any machinery or plant, the event giving rise to a balancing charge in respect of that machinery or plant occurs or occurred on or after the 3rd day of July, 1973. |