CA Bhuvnesh Goyal

Section 33AB, of Income Tax Act, 1961 states that (1) Where an assessee carrying on business of growing and manufacturing tea or coffee or rubber in India has, before the expiry of six months from the end of the previous year or before the due date of furnishing the return of his income, whichever is earlier,— (a) deposited with the National Bank any amount or amounts in an account (hereafter in this section referred to as the special account) maintained by the assessee with that Bank in accordance with, and for the purposes specified in, a scheme (hereafter in this section referred to as the scheme) approved in this behalf by the Tea Board or the Coffee Board or the Rubber Board; or (b) deposited any amount in an account (hereafter in this section referred to as the Deposit Account) opened by the assessee in accordance with, and for the purposes specified in, a scheme framed by the Tea Board or the Coffee Board or the Rubber Board, as the case may be (hereafter in this section referred to as the deposit scheme), with the previous approval of the Central Government, the assessee shall, subject to the provisions of this section, be allowed a deduction (such deduction being allowed before the loss, if any, brought forward from earlier years is set off under section 72) of— (a)  a sum equal to the amount or the aggregate of the amounts so deposited; or (b)  a sum equal to forty per cent of the profits of such business (computed under the head “Profits and gains of business or profession” before making any deduction under this section), whichever is less : 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 : Provided further that where any deduction, in respect of any amount deposited in the special account, or in the Deposit Account, has been allowed under this sub-section in any previous year, no deduction shall be allowed in respect of such amount in any other previous year. (2) The deduction under sub-section (1) shall not be admissible unless the accounts of such business 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 28[before the specified date referred to in section 44AB and the assessee furnishes by that date] the report of such audit in the prescribed form29 duly signed and verified by such accountant : Provided that in a case where the assessee is required by or under any other law to get his accounts audited, it shall be sufficient compliance with the provisions of this sub-section if such assessee gets the accounts of such business audited under such law and furnishes the report of the audit as required under such other law and a further report in the form prescribed under this sub-section. (3) Any amount standing to the credit of the assessee in the special account or the Deposit Account shall not be allowed to be withdrawn except for the purposes specified in the scheme or, as the case may be, in the deposit scheme or in the circumstances specified below :— (a)  closure of business ; (b)  death of an assessee ; (c)  partition of a Hindu undivided family ; (d)  dissolution of a firm ; (e)  liquidation of a company. (4) Notwithstanding anything contained in sub-section (3), where any amount standing to the credit of the assessee in the special account or in the Deposit Account is released during any previous year by the National Bank or withdrawn by the assessee from the Deposit Account, and such amount is utilised for the purchase of— (a)  any machinery or plant to be installed in any office premises or residential accommodation, including any accommodation in the nature of a guest-house; (b)  any office appliances (not being computers); (c)  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; (d) any new machinery or plant to be installed in an industrial undertaking for the purposes of business of construction, manufacture or production of any article or thing specified in the list in the Eleventh Schedule, the whole of such amount so utilised shall be deemed to be the profits and gains of business of that previous year and shall accordingly be chargeable to income-tax as the income of that previous year. (5) Where any amount, standing to the credit of the assessee in the special account or in the Deposit Account, is withdrawn during any previous year by the assessee in the circumstance specified in clause (a) or clause (d) of sub-section (3), the whole of such amount 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, as if the business had not closed or, as the case may be, the firm had not been dissolved. (6) Where any amount standing to the credit of the assessee in the special account or in the Deposit Account is utilised by the assessee for the purposes of any expenditure in connection with such business in accordance with the scheme or the deposit scheme, such expenditure shall not be allowed in computing the income chargeable under the head “Profits and gains of business or profession”. (7) Where any amount, standing to the credit of the assessee in the special account or in the Deposit Account, which is released during any previous year by the National Bank or which

Section 33A, of Income Tax Act, 1961 states that (1) In respect of planting of tea bushes on any land in India owned by an assessee who carries on business of growing and manufacturing tea in India, a sum by way of development allowance equivalent to—  (i)  where tea bushes have been planted on any land not planted at any time with tea bushes or on any land which had been previously abandoned, fifty per cent of the actual cost of planting; and (ii)  where tea bushes are planted in replacement of tea bushes that have died or have become permanently useless on any land already planted, thirty per cent of the actual cost of planting, shall, subject to the provisions of this section, be allowed as a deduction in the manner specified hereunder, namely :— (a)  the amount of the development allowance shall, in the first instance, be computed with reference to that portion of the actual cost of planting which is incurred during the previous year in which the land is prepared for planting or replanting, as the case may be, and in the previous year next following, and the amount so computed shall be allowed as a deduction in respect of such previous year next following; and (b)  thereafter, the development allowance shall again be computed with reference to the actual cost of planting, and if the sum so computed exceeds the amount allowed as a deduction under clause (a), the amount of the excess shall be allowed as a deduction in respect of the third succeeding previous year next following the previous year in which the land has been prepared for planting or replanting, as the case may be : Provided that no deduction under clause (i) shall be allowed unless the planting has commenced after the 31st day of March, 1965, and been completed before the 1st day of April, 1990 : Provided further that no deduction shall be allowed under clause (ii) unless the planting has commenced after the 31st day of March, 1965, and been completed before the 1st day of April, 1970. (2) Where the total income of the assessee assessable for the assessment year relevant to the previous year in respect of which the deduction is required to be allowed under sub-section (1) (the total income for this purpose being computed after deduction of the allowance under sub-section (1) or sub-section (1A) or clause (ii) of sub-section (2) of section 33, but without making any deduction under sub-section (1) of this section or any deduction under Chapter VI-A) is nil or is less than the full amount of the development allowance calculated at the rates and in the manner specified in sub-section (1)—  (i)  the sum to be allowed by way of development allowance for that assessment year under sub-section (1) shall be only such amount as is sufficient to reduce the said total income to nil ; and (ii)  the amount of the development allowance, to the extent to which it has not been allowed as aforesaid, shall be carried forward to the following assessment year, and the development allowance to be allowed for the following assessment year shall be such amount as is sufficient to reduce the total income of the assessee assessable for that assessment year, computed in the manner aforesaid, to nil, and the balance of the development allowance, if any, still outstanding shall be carried forward to the following assessment year and so on, so, however, that no portion of the development allowance shall be carried forward for more than eight assessment years immediately succeeding the assessment year in which the deduction was first allowable. Explanation.—Where for any assessment year development allowance is to be allowed in accordance with the provisions of sub-section (2) in respect of more than one previous year, and the total income of the assessee assessable for that assessment year (the total income for this purpose being computed after deduction of the allowance under sub-section (1) or sub-section (1A) or clause (ii) of sub-section (2) of section 33, but without making any deduction under sub-section (1) of this section or any deduction under Chapter VI-A) is less than the amount of the development allowance due to be made in respect of that assessment year, the following procedure shall be followed, namely :—  (i)  the allowance under clause (ii) of sub-section (2) of this section shall be made before any allowance under clause (i) of that sub-section is made; and (ii)  where an allowance has to be made under clause (ii) of sub-section (2) of this section in respect of amounts carried forward from more than one assessment year, the amount carried forward from an earlier assessment year shall be allowed before any amount carried forward from a later assessment year. (3) The deduction under sub-section (1) shall be allowed only if the following conditions are fulfilled, namely :—  (i)  the particulars prescribed26 in this behalf have been furnished by the assessee; (ii) an amount equal to seventy-five per cent of the development allowance to be actually allowed is debited to the profit and loss account of the relevant previous year and credited to a reserve account to be utilised by the assessee during a period of eight years next following for the purposes of the business of the undertaking, other than—  (a)  for distribution by way of dividends or profits; or  (b)  for remittance outside India as profits or for the creation of any asset outside India; and (iii) such other conditions as may be prescribed. (4) If any such land is sold or otherwise transferred by the assessee to any person at any time before the expiry of eight years from the end of the previous year in which the deduction under sub-section (1) was allowed, any allowance under this section shall be deemed to have been wrongly made for the purposes of this Act, and the provisions of sub-section (5A) of section 155 shall apply accordingly : Provided that this sub-section shall not apply— (i)  where the land is sold or otherwise

Section 33, of Income Tax Act, 1961 states that (1)(a) In respect of a new ship or new machinery or plant (other than office appliances or road transport vehicles) which is owned by the assessee and is wholly used for the purposes of the business carried on by him, there shall, in accordance with and subject to the provisions of this section and of section 34, be allowed a deduction, in respect of the previous year in which the ship was acquired or the 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, a sum by way of development rebate as specified in clause (b). (b) The sum referred to in clause (a) shall be— (A)  in the case of a ship, forty per cent of the actual cost thereof to the assessee; (B)  in the case of machinery or plant,—  (i)  where the machinery or plant is installed 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;  (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, and (b)  twenty-five per cent of such cost, where it is installed after the 31st day of March, 1970; (iv)  in any other case,— (a)  twenty 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)  fifteen per cent of such cost, where it is installed after the 31st day of March, 1970. 25(1A)(a) An assessee who, after the 31st day of March, 1964, acquires any ship which before the date of acquisition by him was used by any other person shall, subject to the provisions of section 34, also be allowed as a deduction a sum by way of development rebate at such rate or rates as may be prescribed, provided that the following conditions are fulfilled, namely :—  (i)  such ship was not previous to the date of such acquisition owned at any time by any person resident in India; (ii)  such ship is wholly used for the purposes of the business carried on by the assessee; and (iii) such other conditions as may be prescribed. (b) An assessee who installs any machinery or plant (other than office appliances or road transport vehicles) which before such installation by the assessee was used outside India by any other person shall, subject to the provisions of section 34, also be allowed as a deduction a sum by way of development rebate at such rate or rates as may be prescribed, provided that the following conditions are fulfilled, namely :—  (i)  such machinery or plant was not used in India at any time previous to the date of such installation by the assessee; (ii)  it is imported in India by the assessee from any country outside India; (iii) no deduction on account of depreciation or development rebate in respect of such machinery or plant has been allowed or is allowable under the provisions of the Indian Income-tax Act, 1922 (11 of 1922), or this Act in computing the total income of any person for any period prior to the date of the installation of the machinery or plant by the assessee; (iv) such machinery or plant is wholly used for the purposes of the business carried on by the assessee; and (v)  such other conditions as may be prescribed. (c) The development rebate under this sub-section shall be allowed as a deduction in respect of the previous year in which the ship was acquired or the 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) or sub-section (1A) of this section or sub-section (1) of section 33A or any deduction under Chapter VI-A) is nil or is less than the full amount of the development rebate calculated at the rate applicable thereto under 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) 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

(1) Where an assessee, sets up an undertaking or enterprise for manufacture or production of any article or thing, on or after the 1st day of April, 2015 in any backward area notified by the Central Government in this behalf, in the State of Andhra Pradesh or in the State of Bihar or in the State of Telangana or in the State of West Bengal, and acquires and installs any new asset for the purposes of the said undertaking or enterprise during the period beginning on the 1st day of April, 2015 and ending before the 1st day of April, 2020 in the said backward area, then, there shall be allowed a deduction of a sum equal to fifteen per cent of the actual cost of such new asset for the assessment year relevant to the previous year in which such new asset is installed. (2) If any new asset acquired and installed by the assessee is sold or otherwise transferred, except in connection with the amalgamation or demerger or re-organisation of business referred to in clause (xiii) or clause (xiiib) or clause (xiv) of section 47, within a period of five years from the date of its installation, the amount of deduction allowed under sub-section (1) in respect of such new asset shall be deemed to be the income of the assessee chargeable under the head “Profits and gains of business or profession” of the previous year in which such new asset is sold or otherwise transferred, in addition to taxability of gains, arising on account of transfer of such new asset. (3) Where the new asset is sold or otherwise transferred in connection with the amalgamation or demerger or re-organisation of business referred to in clause (xiii) or clause (xiiib) or clause (xiv) of section 47 within a period of five years from the date of its installation, the provisions of sub-section (2) shall apply to the amalgamated company or the resulting company or the successor referred to in clause (xiii) or clause (xiiib) or clause (xiv) of section 47, as the case may be, as they would have applied to the amalgamating company or the demerged company or the predecessor referred to in clause (xiii) or clause (xiiib) or clause (xiv) of section 47. (4) For the purposes of this section, “new asset” means any new plant or machinery (other than a ship or aircraft) but does not include— (a)  any plant or machinery, which before its installation by the assessee, was used either within or outside India by any other person; (b)  any plant or machinery installed in any office premises or any residential accommodation, including accommodation in the nature of a guest house; (c)  any office appliances including computers or computer software; (d)  any vehicle; or (e)  any plant or machinery, the whole of the actual cost of which is allowed as 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 previous year. section 32AD of Income Tax Act, 1961 Are you looking to understand about Investment in new plant or machinery in notified backward areas in certain States?  This detailed article will tell you all about Investment in new plant or machinery in notified backward areas in certain States. Hi, my name is Shruti Goyal, I have been working in the field of Income Tax since 2011. I have a vast experience of filing income tax returns, accounting, tax advisory, tax consultancy, income tax provisions and tax planning. Investing in new plant and machinery in certain states can offer considerable tax benefits to investors, particularly in less developed regions. Section 32AD of the Income Tax Act, 1961, permits a deduction of 15% of the cost of newly purchased plant or machinery that is installed in notified backward areas falling in categories A and B. The government identifies backward regions based on a range of factors such as low levels of industrial development, inadequate infrastructure, insufficient employment opportunities, and low human development indices. This deduction is open to all types of businesses including sole proprietorship firms, partnerships, and companies. The deduction is allowed in the year in which the plant or machinery is installed and put to use, and the investment must be made before 31st March 2025 to qualify for the deduction. This deduction is in addition to the normal depreciation allowed on plant and machinery. The usual depreciation rates for plant and machinery vary between 15% and 40%, depending on the asset’s nature. The additional deduction of 15% under section 32AD can lead to significant tax savings for investors. For instance, let’s assume a company invests Rs. 10 crores in new plant and machinery in a backward area categorized as A. The normal depreciation rate is 30%, and the company is eligible for an extra deduction of 15% under section 32AD. The tax savings would be: Normal Depreciation: 30% of Rs. 10 crores = Rs. 3 crores Additional Deduction under section 32AD: 15% of Rs. 10 crores = Rs. 1.5 crores Total Deduction: Rs. 4.5 crores Assuming a corporate tax rate of 30%, the tax savings for the company would be: Tax Savings: 30% of Rs. 4.5 crores = Rs. 1.35 crores Therefore, investing in new plant and machinery in backward areas can not only result in tax savings but also offer other advantages such as lower labor costs, better access to raw materials, improved infrastructure, and business expansion opportunities. To sum up, Section 32AD of the Income Tax Act provides a significant tax incentive for investing in new plant and machinery in backward areas falling in categories A and B. The deduction of 15% of the cost of plant or machinery can lead to substantial tax savings for investors, combined with additional benefits that make investing in backward regions a promising proposition for businesses.

(1) Where an assessee, being a company, engaged in the business of manufacture or production of any article or thing, acquires and installs new asset after the 31st day of March, 2013 but before the 1st day of April, 2015 and the aggregate amount of actual cost of such new assets exceeds one hundred crore rupees, then, there shall be allowed a deduction,— (a)  for the assessment year commencing on the 1st day of April, 2014, of a sum equal to fifteen per cent of the actual cost of new assets acquired and installed after the 31st day of March, 2013 but before the 1st day of April, 2014, if the aggregate amount of actual cost of such new assets exceeds one hundred crore rupees; and (b)  for the assessment year commencing on the 1st day of April, 2015, of a sum equal to fifteen per cent of the actual cost of new assets acquired and installed after the 31st day of March, 2013 but before the 1st day of April, 2015, as reduced by the amount of deduction allowed, if any, under clause (a). (1A) Where an assessee, being a company, engaged in the business of manufacture or production of any article or thing, acquires and installs new assets and the amount of actual cost of such new assets acquired during any previous year exceeds twenty-five crore rupees and such assets are installed on or before the 31st day of March, 2017, then, there shall be allowed a deduction of a sum equal to fifteen per cent of the actual cost of such new assets for the assessment year relevant to that previous year: Provided that where the installation of the new assets are in a year other than the year of acquisition, the deduction under this sub-section shall be allowed in the year in which the new assets are installed: Provided further that no deduction under this sub-section shall be allowed for the assessment year commencing on the 1st day of April, 2015 to the assessee, which is eligible to claim deduction under sub-section (1) for the said assessment year. (1B) No deduction under sub-section (1A) shall be allowed for any assessment year commencing on or after the 1st day of April, 2018. (2) If any new asset acquired and installed by the assessee is sold or otherwise transferred, except in connection with the amalgamation or demerger, within a period of five years from the date of its installation, the amount of deduction allowed under sub-section (1) or sub-section (1A) in respect of such new asset shall be deemed to be the income of the assessee chargeable under the head “Profits and gains of business or profession” of the previous year in which such new asset is sold or otherwise transferred, in addition to taxability of gains, arising on account of transfer of such new asset. (3) Where the new asset is sold or otherwise transferred in connection with the amalgamation or demerger within a period of five years from the date of its installation, the provisions of sub-section (2) shall apply to the amalgamated company or the resulting company, as the case may be, as they would have applied to the amalgamating company or the demerged company. (4) For the purposes of this section, “new asset” means any new plant or machinery (other than ship or aircraft) but does not include—  (i)  any plant or machinery which before its installation by the assessee was used either within or outside India by any other person; (ii)  any plant or machinery installed in any office premises or any residential accommodation, including accommodation in the nature of a guest house; (iii) any office appliances including computers or computer software; (iv) any vehicle; or (v)  any plant or machinery, the whole of the actual cost of which is allowed as 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 previous year. section 32AC of Income Tax Act, 1961 Are you looking to understand about Investment in new plant or machinery?  This detailed article will tell you all about Investment in new plant or machinery. Hi, my name is Shruti Goyal, I have been working in the field of Income Tax since 2011. I have a vast experience of filing income tax returns, accounting, tax advisory, tax consultancy, income tax provisions and tax planning. Making an investment in fresh plant or machinery can considerably enhance the operation of businesses by amplifying efficiency, curtailing costs, and increasing productivity. However, it’s also a crucial financial resolution that necessitates prudent examination of the tax implications involved. One tax benefit that companies can capitalize on is Section 32AC of the Income Tax Act. The prime aim of Section 32AC, introduced in 2017, is to encourage businesses to allocate funds for new plant or machinery. According to this section, firms can assert a deduction of 15% of the cost of new plant or machinery if it was procured and installed after 31 March 2016 but before 1 April 2023. This deduction is applicable to all businesses, including sole proprietorships, partnerships, and companies. To be eligible for the deduction under Section 32AC, there are specific prerequisites that businesses must satisfy. Firstly, the plant or machinery must be new and not previously used in any other business or profession. Secondly, it must have been acquired and installed after 31 March 2016 but before 1 April 2023. Thirdly, it should be used for the business or profession of the assessee. Fourthly, the deduction is only available if the plant or machinery is not used for any other business or profession. Lastly, the deduction is not available if the plant or machinery is utilized outside of India at any time during the relevant previous year. The deduction under Section 32AC is additional to the standard depreciation that businesses can claim on plant or machinery. The standard depreciation rates range from 15% to 40%, depending on the nature of the

Staying abreast of current tax laws and regulations is imperative for investors to maximize their investment returns. One such provision that can aid in tax savings is the Investment Allowance outlined in Section 32A of the Income Tax Act. Implemented in 2014, the Investment Allowance enables businesses to claim a deduction of 15% on newly purchased and installed plant and machinery during a financial year. This deduction, in addition to depreciation, aims to incentivize businesses to invest in new equipment and machinery to improve productivity and efficiency. Eligibility for the Investment Allowance requires the plant and machinery to be acquired and installed between April 1, 2013, and March 31, 2023. The deduction is available to both individuals and companies, including those involved in manufacturing, mining, and infrastructure development. The deduction can be claimed in the year that the asset is put into use. For example, if a company acquires and installs new machinery in September 2022, the deduction can be claimed in the financial year 2022-23. All types of businesses, but especially small and medium-sized enterprises (SMEs), can benefit from the deduction to offset their tax liabilities and improve their cash flow. It’s important to note that the Investment Allowance does not apply to second-hand plant and machinery or assets that have been previously used. Additionally, the deduction cannot be claimed for leased or hired assets. To claim the Investment Allowance, proper documentation must be maintained, such as invoices, receipts, and installation certificates, to support the claim in case of an audit. In conclusion, the Investment Allowance under Section 32A of the Income Tax Act is a valuable provision that can assist businesses in saving on taxes and enhancing their cash flow by investing in new plant and machinery. However, it’s crucial to ensure that the assets meet the eligibility criteria and proper documentation is maintained to support the claim. section 32A of Income Tax Act, 1961 (1) In respect of a ship or an aircraft or machinery or plant specified in sub- section (2), which is owned by the assessee and is wholly used for the purposes of the business carried on by him, there shall, in accordance with and subject to the provisions of this section, be allowed a deduction, in respect of the previous year in which the ship or aircraft was acquired or the machinery or plant was installed or, if the ship, aircraft, machinery or plant is first put to use in the immediately succeeding previous year, then, in respect of that previous year, of a sum by way of investment allowance equal to twenty-five per cent of the actual cost of the ship, aircraft, machinery or plant to the assessee : Provided that in respect of a ship or an aircraft or machinery or plant specified in sub-section (8B), this sub-section shall have effect as if for the words “twenty-five per cent”, the words “twenty per cent” had been substituted : Provided further that no deduction shall be allowed under this section in respect of— (a)  any machinery or plant installed in any office premises or any residential accommodation, including any accommodation in the nature of a guest house ; (b)  any office appliances or road transport vehicles ; (c)  any ship, machinery or plant in respect of which the deduction by way of development rebate is allowable under section 33 ; and (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. Explanation.—For the purposes of this sub-section, “actual cost” means the actual cost of the ship, aircraft, machinery or plant to the assessee as reduced by that part of such cost which has been met out of the amount released to the assessee under sub-section (6) of section 32AB. (2) The ship or aircraft or machinery or plant referred to in sub-section (1) shall be the following, namely :— (a)  a new ship or new aircraft acquired after the 31st day of March, 1976, by an assessee engaged in the business of operation of ships or aircraft ; (b)  any new machinery or plant installed after the 31st day of March, 1976,—  (i)  for the purposes of business of generation or distribution of electricity or any other form of power ; or (ii)  in a small-scale industrial undertaking for the purposes of business of manufacture or production of any article or thing ; or (iii)  in any other industrial undertaking for the purposes of business of construction, manufacture or production of any article or thing, not being an article or thing specified in the list in the Eleventh Schedule : Provided that nothing contained in clauses (a) and (b) shall apply in relation to,—  (i)  a new ship or new aircraft acquired, or (ii)  any new machinery or plant installed, after the 31st day of March, 1987 but before the 1st day of April, 1988, unless such ship or aircraft is acquired or such machinery or plant is installed in the circumstances specified in clause (a) of sub-section (8B) and the assessee furnishes evidence to the satisfaction of the Assessing Officer as specified in that clause ; (c)  any new machinery or plant installed after the 31st day of March, 1983, but before the 1st day of April, 1987, for the purposes of business of repairs to ocean-going vessels or other powered craft if the business is carried on by an Indian company and the business so carried on is for the time being approved for the purposes of this clause by the Central Government. Explanation.—For the purposes of this sub-section and sub-sections (2B), (2C) and (4),—     (1) (a) “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 at any time previous to the date of such acquisition owned by any person