14/01/2019
Investment allowance for investment in new plant and machinery [Sec. 32AC applicable for the assessment years 2014-15 and 2017-18] Section 32AC has been inserted to provide for investment allowance in order to encourage substantial investment in new plant and machinery. Investment allowance is in addition to depreciation.
CONDITIONS :- Investment allowance is available if the following conditions are satisfied :-
.) The assessee is a company . It is engaged in the business of manufacture or production of any article or thing.
.) It has acquired and installed a “new asset". “New asset” for this purpose is a new plant or machinery. But it does not include the following :-
a. any plant or machinery which before its installation by the assessee was used either within or outside India by any other person;
b. any plant or machinery installed in any office premises or any residential accommodation, including accommodation in the nature of a guest house;
c. any office appliances including computers or computer software;
d. any vehicle;
e. ship or aircraft; or,
f. any plant or machinery, the whole of the actual cost of which is allowed as deductlon (whether by way of depreciation or otherwise) in computing the income chargeable under the head “Profits and gains business or profession of any previous year.
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