REGISTERED No. 221
The Gazette of India
EXTRAORDINARY
PART II—Section 3—Sub-section (ii)
PUBLISHED BY AUTHORITY
No. 410] NEW DELHI, MONDAY, DECEMBER 29, 1 96 9 / P A U SA 8, 1891
Separate paging is given to this Part in order that it may be filed as a separate compilation.
CENTRAL BOARD OF DIRECT TAXES
NOTIFICATION
INCOME-TAX
New Delhi, the 29th December, 1969
S.O. 5056.—In exercise of the powers conferred by section 29 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income tax Rules, 1962, namely—
1. (1) These rules may bo called the Income-tax (Sixth Amendment) Rules, 1969. (2) They shall come into force on the 1st day of April, 1970.
2. In rule 5 of the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), for sub-rule (1), the following sub-rule shall be substituted, namely—
'(1) Subject to the provisions of sub-rules (2) and (3), the allowance under clause (i) or clause (ii) of sub-section (1) of section 32 in respect of depreciation of buildings, machinery, plant or furniture shall be calculated at the per- centages specified in the second column of the Table in Part I of Appendix I to these rules on the actual cost or, as the case may be, the written down value of such of the assets aforesaid as are used for the purposes of the business or profession of the assessee at any time during the previous§ year:
Provided that in a case where the assessee has been allowed to vary the meaning of the expression "previous year" in respect of any business or profession under sub-section (4) of section 3 and, thereby, his income from such busi- ness or profession for a period of thirteen months or more is Included in his total income of any previous year, the allowance referred to in this sub- rule, calculated in the manner stated hereinabove, shall be increased by mul- tiplying it by a fraction of which the numerator is the number of complete months in such previous year and the denominator is twelve'.
( 1 5 2 5)
1526 THE GAZETTE OF INDIA EXTRAORDINARY [PAMT II—3. In Appendix I to the principal rules, for Part I, th" following ihill b" substituted,
nMTlfily
PART I
(S"" rule 3)
Tab I) of rcttts at ithich dsprtciiticm is admistiblt ]
Class of asset
RHMARU]
Depreciation
allowance u
percentage
of—
(i) actual co"t
in the caac
of ocean-
going ships;
(H) written! |
down value
in the case
of any other
asset.
1
2
3 t. Buildings.
I. First class substantial buildings of selected material*,
"'* "
5
3. Second class bulidings of legs substantial construction
3. Third class buildings of construction inferiorto that of
second class buildings but not including purely tem-
porary erections. . . . . ..
Tt
Double these rate*
will bo taken for
factory buildings
excluding oficct
godowns, oAccn
and employee*'
quarters.
100
4. Purely temporary erections such at wooden jtmcturoj.
IT. Furniture and fittings—
1
nr I- •
1. Goneral rate . . . . , ,,
3. Rate for furniture and fittings uiiedln hotels jrestaurant
and boarding houses; schools, colleges and other edu-
cational Institutions; libraries; welfare centres; meet
hall8;cinemahouses,theatreeandcircuses;and for fti
niture and fittings let out on hire for use on the occaslo
of marriages and similar functions.
If
HI. Machinery and plant (wot being a ship)
(i) Otntral ratt applicable to machinery and plant (not >#wfc
a shop) for ahich no special ratt has been prticribul unit
ium(,ii)h*T"inbelon] ^
\VS) Spinal rat*':
A. (1) Hydraulic works, pipelines and sluices (N.E.S.A
.) 1
$
, •
f 2) Overhead cables and wires (N.E.S.A.)
(3) Salt Works—Reservoirs, Condensers, Salt Pani
delivery channels and piers, If constructed of
masonary, concrete, cement asphalt er slmilai
materials (N.E.S.A.)
r
B. (1) Accounting machines (N.E.S.A.''
i
except wooden parts.
(2) Air Conditioning Machinery includinf room it
conditioners (N.E.S.A.) 9
r
(3) Artificial Silk Manufacturing Machinery and.Plan
1
t .
(4) Building Contractor's Machinery (N.E.S.A.
)
(5) Brick and Tile Manufacture—wooden shelves an
d V ""
pallets. Q " * T 7"
(6) Calculating machines (N.E.S.A.11
(7) Machinery and plant coming into cwnt*^ with
corrosive chemicals.
(8) Machine Tools—
(a) Automatic and semi-automatic;
(b) Precision machine tools,#./.,grmdiniM"*li
* f t, 3(M)J THE GAZETTE OF INDIA EXTRAORDINARY 1527 I 2 S(9) Mineral oil concerns—field operation (Distribu- '
tion)—Kerbsidc pumps including under-ground tanks and fittings (N.E.S.A.)
(10I Mines and Quarries—Surface and underground machinery (other than electrical machinery, boilers and portable underground machinery), head-gear, moving parts and rails (N.E.S.A.)
(11) Neo-post Franking Machlnei( NJ3.S.A.) (13.) Office Machinery (N.E.S.A.) ( l 3; Refrigeration Plant Containers etc. (other than
racks). (N.E.S.A.)
if
(14) Road making plant and machinery. (15) Ropeway structures—Carrier*. (16) Rubber and Plastic goods factories—General
machinery and plant.
(17) Saltworks—Machinery,plant, locomotives,wagon*
and rolling stock.
(18) Sewing and knitting machines employed in the manufacture of Hosiery and woollen goods. (19) Sewing and stitching machines for canvas or leather
ing rollers and driers.
(22) Tramways Electric and tramways run by internal
combustion engines—Permanent way exceeding 1,25,000 car kilometers per kilometer of track per annum (N.E.S.A.) (23) Typewriters (N.E.S.A.) (24) 'Wireless apparatus and gear, wireless appliances
and accessories (N.E.S.A.)
j
[C. (1) Cinematograph films—Machinery used in the pro-
duction and exhibition of cinematograph film* (N.E.S.A.)— (a) Recording equipment, reproducing equipment, devclopingmachincs,printing machines,edit- ing machines, synchronisers and studio lights except bulbs.
(J) Projecting equipment of film exhibiting con-
cerns.
(N.E.S.A.)
(4) Electrical machinery—Batteries i X-ray and Electro- therapeutic apparatus and accessories thereto (N.E.S.A.)
! • *o
{5) Glass manufacturing concerns except Direct Fire
~ Glass Melting Furnaces—Recuperative and Rege-
nerative Glass Melting Furnaces. (fi, Juice boiling pans (Karhftis) (N.E.S.A.) (7) M")torcars,rB3torcydcs,scootersandothermoped" 1
(N.E.S.A.)
(8) Si?}rCiis;ruih-rsCirrdigenousKolhuiandBclan")I I J
(N.E.S.A.)
D. (1) Aeroplanes—Aircraft, Aerial photographic appiratu* "
(N.E.S.A.)
SO
(2) Concrete Pipes manufacture—Moulds (N. E. S. A.) (3) Drum Container manufacture—Dies (N.E.S.A.) (4) Earth moving machinery employed in heavy con- struction works, such as dams, tunnels, canals etc. (N.E.S.A.)
(5) Glass manufacturing concerns except Direct Fire Glass Melting Furnaces—Moulds (N.E.S.A.)
(6) Moulds In Iron Foundries (N.E.S.A.) „
1338 THE GAZETTE OF INDIA EXTRAORDINARY [PAM JLT- 2 I 3(7) Mineral oil concerns—Field • operations (above ground)—Portable boilers, dulling tools, wellhead tanks, rigs etc. (N.fa.ti.A.)
30
(8) Mines anu quaines—PoiUble unacrgiounu muehi- neiy anu earth movm g machineiy uaea 111 open cast minn.gCM.li.fa.A.J
(9) Motor buset, mo.oj let tics, motor taxiet, motor
hi.
tractor!) (N.h.S.A.)
(10) Pattenis, dies mm templates (N.U.S.A.) ( i ij Ropeway strueiutcb—Ropeways rupet and trestle
sheaves anU connected parts (.N.E.fa.A.)
(12) Shoe and other leather goods factoneb—wooden
lasts used in the manufacture of shoes.
E. (l) Aeroplanes—Aero-engines (N.b.S.A.) . "\
(2) Rubber and plastic goods factories—Moulds >
40
(N.E.S.A.)
J
F. (1) Artificial Silk Manufacturing Machinery—wooden
parts,
(z) Cinematograph films—Bulbs of studio light3, (3) Flour mills—Rollers. (4) Gaa cych'nders iueluding valves and regulators. (5) Glass manufacturing Concerns—Diicct Tut Glass
Melting Furnaces.
100
(6) Iron and steel industry,—Rolling mill rolls. (7} Match factories—Wooden match irames. (,8) Mineral oil concerns—
(a) Plant used iu field operations (above grounds-
Distribution—ret urnable packages.
(J>) Plant used in field operations (below grouna;
but not including assets covered by sub-item (ii) B(9) above.
(<>) Mines and quarries—
(
l
stowing pipes.
(b) Safety lamps.
(10) Salt works—Salt pans, reservoirs and condensers
etc. made of earthy, sandy or clayey material or any,, other similar materials.
(11) Sugar works—rollers.
J
(iii) Extra depreciation allowance for approved hotels:
An extra allowance of depreciation of an amount equal
to one-half of the normal allowance shall be allowed ] Jn the case of machinery and plant installed by an asaessee, being an Indian company, in premises; used by it as a hotel where such hotel Is forthe time f rein g approved by the Central Government for the purposes of section 33 of the Act.
Explanation-—For the purposes of this sub-item and sub-
item (iv),"normal allowance" means the amount of depreciation allowance [other than the extra depreciation allowance under this sub-item or the extra shift depreciation allowance under sub-item (Iv) ] which Is allowable under rule 5.
(JT) Extra shift depredation allowance:
An extra allowfln ce upto a maximum of an amount equal to one-half of the n ormal allowan ce shall be allowed where a Concern claims such allowance on account of double shift working and establishes that it has worked double shift. An extra allowance upto a maximum of an amount equal to the normal allowan ce instead of one-half of the normal allowa- nce, shall be allowed where a concern claims such allowance on account of triple shift working and establishes that it has worked triple shift.
SEC. 3(ii)] THE GAZETTE OF INDIA EXTRAORDINARY 1529 I i 3The calculations of the extra allowance for double shift workin g and for triple shift working shall be made separately in the proportion which the number of days for which the concern worked double shift or triple shift, ae the case may be, bears to the normal number of working days during the previous year. For this purpose, che normal number of working days during the previous year shall be deemed to be—
(a) in the case of a seasonal factory or concern, the number of days on which tin; factory or concern actually worked during the previous ycaron8o days, whichever is greater;
(£>) in any other case, the number of days on which the factory or concern actually worked during the previous year or 240 days, whichever is greater.
Illustration
For example, where a non-seasonal concern worked 270 days during the previous year out of which it worked triple shift on 135 days and double shift on another 90 days, the extra depredation allowance for triple shift working will be 135/270, i.e. one-half of the normal allowance, and that for double shift working 90/270, i.e. one-third, of one-half of the normal allowance.
The extra shift allowance shall not be allowed in respect of any item of machinery or plant which has been specifically excepted by inscription oftheletters "N.E.S.A"(meaning"NoExtraShift Allowance" against it in sub-item (ii) above and also in respect of the following items of machinery and plant to which the general rate of depreciation of 10 per cent, applies:— (1) Electrical Machinery—Switch gear and instru- ments^ transformers and other stationary plant and wiring and fittings of electric light and fan installations.
(2) Locomotives, Rolling stock, Tramways arid Railways used by concerns, excluding Railway concerns.
(3) Mineral oil concerns—Refineries—
a) Boilers, b) Prime Movers, c) Process plant.
(4) Mineral oil concerns—Field operations—
(a) Boilers, (6) Prime Movers, (e) Process plant, id) Storage tanks (above ground), (") Pipelines (above ground), (/) Jetties and Dry docks.
(5) Mines and quarries—
(a) Boilers and head-gears (excluding moving
parr-0,
(b) Shafts and inclines, (c) Tramways on the surface.
(fi) Railway sidings.
(7) Ropeway structures—
(a) Tresfle !im) Station steel work, (&) Driving and tension gearing.
1530 TUB GAZETTE OF INDIA EXTRAORDINARY [PART II—SEC. 3 (d) ] I 2 3(8) Salt Works—
(a) Barges and Floating Plant, (t) Piers, quays and jcities, (c) Pipelines for conveying brine if CMstruc- cd of masonry, concrete, c;ment, asphalt or similar materials.
(9) Tramways Electric and tramways run by inter-
nal combustion engines— (a) Permat]entwaynotexceedingi,25,oco car kilometers per kilometer of track per annum
(b) Cars—car trucks, car bodies, electrical
equipment and motors,
(c) tram cars incluuing engines and gears.
(io) Weighing machines.
IV. Ships—
To be calculated (i) Ocean going ships
5
o,i the ac'ual cost.
(2) Vessels ordinarily operating on inland waters—
20
10
(i) * Speed boats ("i) Other vessels
*'fSpeci boat" means a motor boat driven by a high speed internal combustion cngi] e capable of propelling the boat at a speed exceeding 24 kilometers per hour in still waier ard so designed that when running at a speed it will plane, i.e., its bow will rise frcm the water.
[No. 169/F. N o. 3(9)69-TPL].
R. R. K H O S L A, Secy.