Finance Act, 1937

Carrying forward of losses in certain cases.

4.—(1) Where—

(a) a loss sustained by a person has been carried forward under section 14 of the Finance Act, 1929 (No. 32 of 1929), and

(b) owing to the allowance (under Rule 6 of the Rules applicable to Cases I and II of Schedule D of the Income Tax Act, 1918) in the assessments for the six years next following the year in which such loss was sustained of deductions for wear and tear of machinery or plant, a deduction or set-off cannot be given under the said section 14 in respect of such loss or a part thereof from or against the profits or gains on which such person is assessed under the said Schedule D for the said six years,

then and in such case, so much of such loss as represents the amount thereof in respect of which relief was not given but could have been given were it not for the allowance aforesaid shall be further carried forward and deducted or set-off under and in accordance with the said section 14, with the modification that, for the purpose of such further carrying forward, the words “the six following years of assessment” shall be deemed to be deleted from sub-section (1) of the said section and the words “all subsequent years of assessment” to be substituted for the words so deleted.

(2) The same deduction for wear and tear of machinery or plant to which effect is given in any year of assessment shall not be taken into account more than once for the purposes of this section.

(3) Any relief given under the said section 14 of the Finance Act, 1929 , (otherwise than by virtue of this section) from an assessment shall be given in respect of a loss sustained in a year within the six years immediately preceding the year of assessment before any relief is given by virtue of this section in respect of a loss sustained in a year not within those six years.

(4) This section shall be deemed to have come into operation on the 6th day of April, 1936, and shall have and be deemed to have had effect as on and from that date.