Finance Act, 1957

Amendment of Rule 6 of Rules applicable to Cases I and II of Schedule D of Income Tax Act, 1918.

2.—(1) The amount of any deduction under Rule 6 of the Rules applicable to Cases I and II of Schedule D of the Income Tax Act, 1918, shall, in the case of any year of assessment beginning on or after the 6th day of April, 1958, be computed as if paragraph (1) of the said Rule 6 had provided, in relation to any

such year, for a deduction equal to five-fourths of the amount considered by the authority having jurisdiction in the matter to be just and reasonable as representing the diminished value by reason of wear and tear during the year of the machinery or plant.

(2) References to the said Rule 6 which are contained in section 3 of the Finance Act, 1949 (No. 13 of 1949), and in subsection (1) of section 24 of the Finance Act, 1956 (No. 22 of 1956), shall be construed as including references to the said Rule 6 as amended by this section.

(3) Paragraph (4) of the said Rule 6 shall have effect as if from “as” to the end of the paragraph were deleted and “as is due” were substituted therefor.

(4) Paragraph (5) of the said Rule 6 shall have effect as if the amount therein referred to were an amount equivalent to the amount which would be allowable under paragraph (1) of the said Rule 6 if the machinery or plant were, during the period of the letting, in use for the purposes of a trade carried on by the lessor.

(5) The provisions of this section shall not apply to any deduction allowable—

(a) under the said Rule 6 as representing the diminished value by reason of wear and tear of any vehicle suitable for the conveyance by road of persons or goods or the haulage by road of other vehicles, or

(b) by virtue of an election under the proviso which was added to paragraph (1) of the said Rule 6 by section 3 of the Finance (Miscellaneous Provisions) Act, 1956 (No. 47 of 1956).