Tamil nadu act 009 of 1996 : Tamil Nadu Agricultural Income-Tax (Third Amendment) Act, 1996

Section 1. Short title and commencement

1. Short title and commencement.- (1) This Act may be called the Tamil Nadu Agricultural Income-tax (Third Amendment) Act, 1996.

(2) It shall come Into force on such date as the State Government may, by notification, appoint.

Section 2. Amendment of section 5

2. Amendment of section 5.- In the Tamil Nadu Agricultural Income-tax Act, 1955, in section 5 (Tamil Nadu Act V of 1955),-

(1) for clause (f), the following clause shall be substituted, namely:-

"(f)(i) in respect of depreciation of building, machinery, plant or furniture owned by the assessee and used by him for the purpose of deriving the agricultural income, a sum equivalent to such percentage on the written dawn value thereof as may, in any case or class of cases, be prescribed, and where the building has been newly erected or the machinery or plant newly installed, a further sum subject to such conditions, as may be prescribed:

Provided that if the building ??? or machinery or plant installed was not put to use in the year of erection or installation, the further same to be ??? under this sub-clause shall be allowed in the year in which such building, machinery or plant was first put to use:

Provided further that the prescribed particulars have been duly furnished:

Provided also that the aggregate of all such deduction shall, in no case exceed the original cost of the building, machinery, plant or furniture, as the case may be:

Provided also that for the building, machinery or plant acquired under the hire purchase agreement, the depreciation including the initial depreciation provided under this sub-clause shall in no case exceed the amount paid in instalments to the seller under the hire purchase agreement:

Provided also that in the case of assets used partly for agricultural purposes and partly for non-agricultural purposes, the Agricultural Income-tax Officer may allow depreciation in proportion to the use of the asset for agricultural purposes, as lie may determine.

Explanation.- For the purpose of this clause, machinery, plant or furniture obtained by the assessee under hire purchase agreements shall be deemed to be assets owned by the assessee;

(ii) In respect of a machinery or plait spoiled by the Government by notification in the Tamil Nadu Government Gazette, which is ??? by the ??? is wholly used by him for the purpose of deriving agricultural income, in respect of the previous year, in which the machinery or plant is first ??? way of investment allowance equal to ten percent of the actual cost of the machinery or plant:

Provided that the machinery or plant is acquired newly by the ???.

Provided further that no deduction shall be allowed ??? respect of any machinery or plant installed in any ??? accommodation including any accommodation in the nature of a ???.

Provided also that if the machinery or plant in respect of which ??? allowance is allowed under this sub-clause, is sold or otherwise ??? by the assessee to any person at any time before the expiry of five years from the end of the previous year in which it was first put to use, whether during the ??? of agricultural operation or after the cessation thereof, the investment allowance allowed in respect of such machinery or plant shall be treated as income of the assessee for the previous year in which such machinery or plant is sold or otherwise transferred.".

(2) In Explanation 1,-

(a) in clause (i), the word "and" occurring at the end shall be ???

(b) for clause (ii), the following clauses shall be substituted, namely:-

"(ii) in the case of assets acquired before the previous year, the actual cost to the assessee less all depreciations actually allowed to him under this Act and

(iii) in the case of assets acquired as replacement of the old one, ??? value realised on the sale of the old assets shall be deducted from the value of the assets acquired.".