TaxTMI 
TaxTMI 
Investment deposit account
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....e shall be allowed a deduction ^2[(such deduction being allowed before the loss, if any, brought forward from earlier years is set off under section 72)] of- (i) a sum equal to the amount, or the aggregate of the amounts, so deposited and any amount so utilised; or (ii) a sum equal to twenty per cent of the profits of ^3[***] business or profession as computed in the accounts of the assessee audited in accordance with sub-section (5), whichever is less : ^4[Provided that where such assessee is a firm, or any association of persons or any body of individuals, the deduction under this section shall not be allowed in the computation of the income of any partner, or as the case may be, any member of such firm, association of persons or body of individuals:] ^5[Provided further that no such deduction shall be allowed in relation to the assessment year commencing on the 1st day of April, 1991, or any subsequent assessment year.] (2) For the purposes of this section,- (i) ^6[****] ^7[(ii) "new ship" or "new aircraft" includes a ship or aircraft which before the date of acquisition by the assessee was used by any other person, if it was not a....
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.... any accommodation in the nature of a guest-house; (b) any office appliances (not being computers); (c) any road transport vehicles; (d) any machinery or plant, the whole of the actual cost of which is allowed as a deduction (whether by way of depreciation or otherwise) in computing the income chargeable under the head "Profits and gains of business or profession" of any one previous year; ^13[(e) any new machinery or plant to be installed in an industrial undertaking, other than a small-scale industrial undertaking, as defined in section 80HHA, for the purposes of business of construction, manufacture or production of any article or thing specified in the list in the Eleventh Schedule.] (5) The deduction under sub-section (1) shall not be admissible unless the accounts of the business or profession of the assessee for the previous year relevant to the assessment year for which the deduction is claimed have been audited by an accountant as defined in the Explanation below sub-section (2) of section 288 ^24[before the specified date referred to in section 44AB and the assessee furnishes by that date] the report of such audit in the prescribed f....
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.... in the scheme or at the closure of the account ^20[[in circumstances other than the circumstances specified in clauses (b), (c) and (e) of sub-section (5A)]], is not utilised in accordance with ^ 21[, and within the time specified in,] the scheme, either wholly or in part, ^22[***] the whole of such amount or, as the case may be, part thereof which is not so utilised shall be deemed to be the profits and gains of business or profession of that previous year and shall accordingly be chargeable to income-tax as the income of that previous year. (7) Where any asset acquired in accordance with the scheme is sold or otherwise transferred in any previous year by the assessee to any person at any time before the expiry of eight years from the end of the previous year in which it was acquired, such part of the cost of such asset as is relatable to the deductions allowed under sub-section (1) shall be deemed to be the profits and gains of business or profession of the previous year in which the asset is sold or otherwise transferred and shall accordingly be chargeable to income-tax as the income of that previous year: Provided that nothing in this sub-section shall apply- ....
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....ional Bank for Agriculture and Rural Development Act, 1981 (61 of 1981); (ii) in the case of other assessees, the Industrial Development Bank of India established under the Industrial Development Bank of India Act, 1964 (18 of 1964) and includes such bank or institution as may be specified in the scheme in this behalf.] **************** NOTES:- 1. Inserted vide Section 8 of the Finance Act, 1986 w.e.f. 01-04-1987 2. Inserted vide Section 7 of the Finance Act, 1987 w.e.f. 01-04-1987 3. Omitted vide Section 7 of the Finance Act, 1989 w.e.f. 01-04-1991 before it was read as, "eligible" 4. Inserted vide Section 7 of the Finance Act, 1987 w.e.f. 01-04-1987 5. Inserted vide Section 8 of the Finance Act, 1990 w.e.f. 01-04-1990 6. Omitted vide Section 7 of the Finance Act, 1989 w.e.f. 01-04-1991 before it was read as, "(i) "eligible business or profession" shall mean business or profession, other than - (a) the business of construction, manufacture or production of any article or thing specified in the list in the Eleventh....