# The Finance Act, 1998, Section 16: Amendment of section 41

- Act: The Finance Act, 1998
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-1998/section/16/

## Text

Amendment of section 41. 16. In section 41 of the Income-tax Act, after sub-section (1), the following sub-section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1998, namely :— "(2) Where any building, machinery, plant or furniture,— (a) which is owned by the assessee; (b) in respect of which depreciation is claimed under clause (i) of sub-section (1) of section 32; and (c) which was or has been used for the purposes of busi­ness, is sold, discarded, demolished or destroyed and the moneys pay­able in respect of such building, machinery, plant or furniture, as the case may be, together with the amount of scrap value, if any, exceeds the written down value, so much of the excess as does not exceed the difference between the actual cost and the written down value shall be chargeable to income-tax as income of the business of the previous year in which the moneys payable for the building, machinery, plant or furniture became due. Explanation.—Where the moneys payable in respect of the build­ing, machinery, plant or furniture referred to in this sub-section become due in a previous year in which the business for the purpose of which the building, machinery, plant or furniture was being used is no longer in existence, the provision of this sub-section shall apply as if the business is in existence in that previous year.". © Copyright. Taxmann Publications Pvt. Ltd.

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