Investment deduction in notified backward areas allows deduction of a portion of new asset cost for qualifying installations. A new section 32AD grants an investment deduction for undertakings setting up manufacturing or production units in notified backward areas of Andhra Pradesh and Telangana that acquire and install qualifying new plant or machinery within the specified window; the provision defines excluded assets and imposes a five-year recapture rule treating the previously allowed deduction as business income if such asset is transferred within five years, with special application of the recapture rule to successors in specified amalgamation, demerger or reorganisation transactions.
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Provisions expressly mentioned in the judgment/order text.
Investment deduction in notified backward areas allows deduction of a portion of new asset cost for qualifying installations.
A new section 32AD grants an investment deduction for undertakings setting up manufacturing or production units in notified backward areas of Andhra Pradesh and Telangana that acquire and install qualifying new plant or machinery within the specified window; the provision defines excluded assets and imposes a five-year recapture rule treating the previously allowed deduction as business income if such asset is transferred within five years, with special application of the recapture rule to successors in specified amalgamation, demerger or reorganisation transactions.
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