Investment in new plant or machinery deduction provides phased allowance subject to recapture if assets disposed within limited period. Section 32AC allows companies in manufacturing that acquire and install qualifying new plant or machinery within the specified window and whose aggregate cost exceeds the statutory threshold to claim a phased deduction of a fixed percentage of actual cost across two assessment years, with the second-year amount reduced by any first-year deduction. If a qualifying asset is transferred or sold within a limited period after installation, the earlier deduction is recaptured as business income, subject to special treatment on amalgamation or demerger; several categories of assets are expressly excluded from the definition of 'new asset.'
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Investment in new plant or machinery deduction provides phased allowance subject to recapture if assets disposed within limited period.
Section 32AC allows companies in manufacturing that acquire and install qualifying new plant or machinery within the specified window and whose aggregate cost exceeds the statutory threshold to claim a phased deduction of a fixed percentage of actual cost across two assessment years, with the second-year amount reduced by any first-year deduction. If a qualifying asset is transferred or sold within a limited period after installation, the earlier deduction is recaptured as business income, subject to special treatment on amalgamation or demerger; several categories of assets are expressly excluded from the definition of "new asset."
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