Depreciation deduction cap reduces company allowance for a specified prior year under a taxation amendment transitional rule. The amendment inserts a proviso in section 32(1)(ii) of the Income-tax Act limiting, for the previous year relevant to the assessment year commencing on the first day of April, 1991, the deduction in relation to any block of assets for a company to seventy-five per cent of the amount computed by applying the prescribed percentage on the written down value of such assets as prescribed immediately before the commencement of the Taxation Laws (Amendment) Act, 1991.
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Provisions expressly mentioned in the judgment/order text.
Depreciation deduction cap reduces company allowance for a specified prior year under a taxation amendment transitional rule.
The amendment inserts a proviso in section 32(1)(ii) of the Income-tax Act limiting, for the previous year relevant to the assessment year commencing on the first day of April, 1991, the deduction in relation to any block of assets for a company to seventy-five per cent of the amount computed by applying the prescribed percentage on the written down value of such assets as prescribed immediately before the commencement of the Taxation Laws (Amendment) Act, 1991.
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