Investment allowance under section 32A-Tea companies-Creation of reserve

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....sp;           Subject:  Investment allowance under section 32A-Tea companies-Creation of reserve. Attention is invited to the provisions of section 32A of the Income-tax Act, 1961, which provide for the grant of investment allowance in respect of new machinery and plant installed, inter alia, for the purposes of construction, manufacture or....

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.... of tea companies in whose cases only 40 per cent. of the income is liable to income-tax. A similar question was examined by the Board in the past with regard to the quantum of reserve to be created for the grant of development rebate in respect of new machinery and plant installed by tea companies. It was clarified by the Board's Circular letter F. No. 1(8)-58-PL dated 1st November, 1958, that in....