Initial depreciation allowance and backward area profits deduction expand targeted tax relief and refine eligibility and sequencing rules. The Amending Act provides a 20% initial depreciation allowance for qualifying new ships, aircraft and specified machinery or plant installed in selected industries and small scale undertakings, prescribes exclusions and treatment vis a vis development rebate and written down value, permits an assessee to elect not to claim the allowance, and sets transitional and effective date rules; it also introduces Section 80HH granting a profits deduction to new industrial undertakings and approved hotels in specified backward areas subject to formation, transfer of used plant and employment conditions, audit and approval requirements, and sequencing with other concessions.