Section 8(3) in The Assam Agricultural Income-Tax Act, 1939
(3)In determining the net agricultural income, such percentage of total agricultural income of the assessee as may be notified by the State Government from time to time and deposited with the Assam Financial Corporation in the previous year in an account (hereinafter referred to as the Plantation Development Account) maintained by the assessee with the Assam Financial Corporation for utilisation for the purpose specified below to Clauses (a) to (e) of this sub-section, shall be allowed as deduction to the assessee from the agricultural income; provided the same has not already been allowed as deduction under any of the provisions of the Indian Income Tax Act, 1961 :Provided further that where such assessee is a firm, or any association of persons or any body of individuals, the deduction under this sub-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 if any withdrawal from the deposit is not utilised for the purpose for which it is sanctioned, it shall be treated as agricultural income of the year of the withdrawal and assessed accordingly :(a)extension of planting, replanting, replacement, rejuvenation or consolidation of areas of plantations or interplanting of planted areas including preparation of land, care and maintenance of such areas and provision of nurseries and shade trees;(b)extension of factories and godowns;(c)purchase of tractors, trailers, power trailers, power trollies for the purpose of expansion of plantation;(d)purchase of spraying equipment for weed control and plant protection measures;(e)measures for controlling floods, soil erosion and water logging including drainage.
