exceptions to 35AD

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This query is : Resolved

Parag (Querist)

18 February 2011 (d) any machinery or plant which was used outside India by any person other than the assessee shall not be regarded as machinery or plant previously used for any purpose, if

(i) such machinery or plant was not, at any time prior to the date of the installation by the assessee, used in India;

(ii) such machinery or plant is imported into India from any country outside India; and

(iii) no deduction on account of depreciation in respect of such machinery or plant has been allowed or is allowable under the provisions of this Act in computing the total income of any person for any period prior to the date of installation of the machinery or plant by the assessee;

can anybody please explain the following provisions that whether the machinery was imported by other person in india and then sold to the assessee or is it that assessee
imported from outside india from other person?????

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

18 February 2011 Condition 1

whether the machinery was imported by other person in india and then sold to the assesse

Deduction Under the section is allowable.

Condition 2

Is it that assessee imported from outside
india from other person?????

Deduction Under the section is allowable.

We can simply say that imported machinery, as well as such Indian Machinery on which
depreciation has not been claimed in India, shall be deemed to be a new machinery. Old P&M can be imported.

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