Investment allowance reserve: reserve requirement and carry forward limits govern allowance utilisation and reserve adequacy under section 32A Investment allowance is admissible in the year of installation or the immediately succeeding year subject to creation of a statutory reserve equal to seventy-five per cent of the amount actually allowed, to be debited to the profit and loss account. Only so much of the allowance as reduces total income to nil may be utilised each year, with the balance carried forward to subsequent assessment years. Cumulative reserves created in the year of installation or later may be aggregated to satisfy the reserve requirement, and an assessee may create a reserve exceeding current year profits without denial solely for that reason.