https://www.taxtmi.com/circulars?id=4705 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. en-us Fri, 12 Jun 1981 00:00:00 +0530 Sat, 02 Aug 2008 12:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=4705 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. Circulars Income Tax Fri, 12 Jun 1981 00:00:00 +0530 https://www.taxtmi.com/circulars?id=4705