Section 7(5) in The Kerala Agricultural Income Tax Act, 1991
(5)In respect of a machinery or plant specified by the Government by notification in the Gazette which is owned by the assessee and is wholly used by him for the purpose of deriving agricultural income there shall be allowed a deduction, in respect of, the previous year, in which the machinery or plant is first put to use, a sum by way of investment allowance equal to ten per cent of the actual cost to the assessee of the machinery or plant:Provided that(a)the machinery or plant is a new machinery or plant acquired by the assessee;(b)the particulars specified in the notification by the Government have been duly furnished by the assessee:Provided further that no deduction shall be allowed under this sub-section in respect of-(a)any machinery or plant installed in any office premises or accommodation including any accommodation in the nature of a Guest House;(b)any office appliances or road transport vehicles:Provided also that if the machinery or plant in respect of which investment allowance is made under this sub-section is sold or otherwise transferred by the assessee to any person at any time before the expiry of five years from the end of the previous year in which it was first put to use whether during the continuation of agricultural operation or after the cessation thereof, the investment allowance made in respect of such machinery or plant shall be treated as the income of the assessee for the previous year in which such machinery or plant is sold or otherwise transferred.
