Development rebate

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....in the list in the Fifth Schedule,- (a) thirty-five per cent of the actual cost of the machinery or plant to the assessee, where it is installed before the 1st day of April, 1970, and (b) twenty-five per cent of such cost, where it is installed after the 31st day of March, 1970; (ii) where the machinery or plant is installed after the 31st day of March, 1967, by an assessee being an Indian company in premises used by it as a hotel and such hotel is for the time being approved in this behalf by the Central Government,- (a) thirty-five per cent of the actual cost of the machinery or plant to the assessee, where it is installed before the 1st day of April, 1970, and  (b) twenty-five per cent of such cost, where it is installed after the 31st day of March, 1970; (iii) where the machinery or plant is installed after the 31st day of March, 1967, being an asset representing expenditure of a capital nature on scientific research related to the business carried on by the assessee,- (a) thirty-five per cent of the actual cost of the machinery or plant to the assessee, where it is installed before the 1st day of April, 1970, ....

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....he machinery or plant was installed or, if the ship, machinery or plant is first put to use in the immediately succeeding previous year, then, in respect of that previous year.] (2) In the case of a ship acquired or machinery or plant installed after the 31st day of December, 1957, where the total income of the assessee assessable for the assessment year relevant to the previous year in which the ship was acquired or the machinery or plant installed or the immediately succeeding previous year, as the case may be (the total income for this purpose being computed without making any allowance under sub-section (1) ^3[or sub-section (1A)] ^4[of this section or sub-section (1) of section 33A] ^5[or any deduction under Chapter  VI-A ^6[****]]) is nil or is less than the full amount of the development rebate calculated at the rate applicable thereto under ^7[sub-section (1) or sub-section (1A), as the case may be],- (i) the sum to be allowed by way of development rebate for that assessment year under sub-section (1) ^8[or sub-section (1A)] shall be only such amount as is sufficient to reduce the said total income to nil; and (ii) the amount of the development reb....

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....ve created by the amalgamating company and in respect of the period within which such ship, machinery or plant shall not be sold or otherwise transferred and in default of any of these conditions, the provisions of sub-section (5) of section 155 shall apply to the amalgamated company as they would have applied to the amalgamating company had it committed the default; and (b) the balance of development rebate, if any, still outstanding to the amalgamating company in respect of such ship, machinery or plant shall be allowed to the amalgamated company in accordance with the provisions of sub-section (2), so, however, that the total period for which the balance of development rebate shall be carried forward in the assessments of the amalgamating company and the amalgamated company shall not exceed the period of eight years specified in sub-section (2) and the amalgamated company shall be treated as the assessee in respect of such ship, machinery or plant for the purposes of this section and section 34.] (4) Where a firm is succeeded to by a company in the business carried on by it as a result of which the firm sells or otherwise transfers to the company any ship, machinery ....

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....the case of machinery or plant installed before the 1st day of April, 1961, twenty-five per cent. of the actual cost of the machinery or plant to the assessee; and (iii) in the case of machinery or plant installed after the 31st day of March, 1961 (a) where the machinery or plant is installed after the 31st day of March, 1963, and before the 1st day of April, 1965, for the purposes of business of mining coal, thirty five per cent. of the actual cost of the machinery or plant to the assessee, (b) where the machinery or plant is installed before the 1st day of April, 1965, for the purposes of any other business, twenty per cent., (c) where the machinery or plant is installed after the 31st day of March, 1965, - (A) for the purposes of business of construction, manufacture or production of any one or more of the articles or things specified in the list in the Fifth Schedule, - (a) thirty-five per cent. of the actual cost of the machinery or plant to the assessee, where it is installed before the 1st day of April, 1970, and (b) twenty-five per cent. of such cost, where it is installed after the 31st day of March, 1970, and ....

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....achinery or plant shall not be sold or otherwise transferred and in default of any of these conditions, the provisions of sub-section (5) of section 155 shall apply to the successor as they would have applied to the predecessor had it committed the default; (b) the balance of development rebate, if any, still outstanding to the predecessor in respect of such ship, machinery or plant shall be allowed to the successor in accordance with the provisions of sub-section (2), so, however, that the total period for which the balance of development rebate shall be carried forward in the assessments of the predecessor and the successor shall not exceed the period of eight years specified in sub-section (2) and the successor shall be treated as the assessee in respect of such ship, machinery or plant for the purposes of section 33 and section 34. Explanation.-For the purposes of this sub-section, "amalgamation" means the merger of two or more companies (each of which is hereinafter in this Explanation referred to as the amalgamating company) to form one company (hereinafter in this Explanation referred to as the amalgamated company) In such a manner that- (i) all th....