Amendment of section 32

Section 12 of the Finance Act, 1999 deals with amendment of section 32. Amendment of section 32. 12. In section 32 of the Income-tax Act, in sub-section (1), in clause (ii), for the fourth proviso, the following proviso shall be substituted with effect from the 1st day of April, 2000, name­ly :— "Provided also that the aggregate deduction, in respect of depre­ciation of

Amendment of section 32.

12. In section 32 of the Income-tax Act, in sub-section (1), in clause (ii), for the fourth proviso, the following proviso shall be substituted with effect from the 1st day of April, 2000, name­ly :—

"Provided also that the aggregate deduction, in respect of depre­ciation of buildings, machinery, plant or furniture, being tangible assets or know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature, being intangible assets allowable to the predecessor and the successor in the case of succession referred to in clause (xiii ) and clause (xiv) of section 47 or section 170 or to the amalgamating company and the amalgamated company in the case of amalgamation, or to the demerged company and the result­ing company in the case of demerger, as the case may be, shall not exceed in any previous year the deduction calculated at the prescribed rates as if the succession or the amalgamation or the demerger, as the case may be, had not taken place, and such deduction shall be apportioned between the predecessor and the successor, or the amalgamating company and the amalgamated compa­ny, or the demerged company and the resulting company, as the case may be, in the ratio of the number of days for which the assets were used by them.".

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Section 12, The Finance Act, 1999.