(4)Where as a result of proceedings initiated under section 147, a loss or depreciation has been recomputed and in consequence thereof it is necessary to recompute the total income of the assessee for the succeeding year or years to which the loss or depreciation allowance has been carried forward and set off under the provisions of sub-section (1) of section 72, or sub-section (2) of section 73, [or sub-section (1) or sub-section (3) of section 74,] [ Substituted by Act 11 of 1987, Section 74, for " sub-section (1) of section 74" (w.e.f. 1.4.1988).] [or sub-section (3) of section 74-A,] [ Inserted by Act 20 of 1974, Section 13 (w.e.f. 1.4.1975).] the [Assessing Officer] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).] may proceed to recompute the total income in respect of such year or years and make the necessary amendment; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned [from the end of the financial year in which the order was passed] [ Substituted by Act 67 of 1984, Section 30, for " from the date of the final order passed" (w.e.f. 1.10.1984).] under section 147.[(4-A) Where an allowance by way of investment allowance has been made wholly or partly to an assessee in respect of a ship or an aircraft or any machinery or plant in any assessment year under section 32-A and subsequently-(a)at any time before the expiry of eight years from the end of the previous year in which the ship or aircraft was acquired or the machinery or plant was installed, the ship, aircraft, machinery or plant is sold or otherwise transferred by the assessee to any person other than the Government, a local authority, a corporation established by a Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956), or in connection with any amalgamation or succession referred to in sub-section (6) or sub-section (7) of section 32-A; or(b)at any time before the expiry of ten years from the end of the previous year in which the ship or aircraft was acquired or the machinery or plant was installed, the assessee does not utilise the amount credited to the reserve account under sub-section (4) of section 32-A for the purposes of acquiring a new ship or a new aircraft or new machinery or plant (other than machinery or plant of the nature referred to in clauses (a), (b) and (d) of ] [the second proviso] [ Substituted by Act 3 of 1989, Section 25, for " the proviso" (w.e.f. 1.4.1989).][to sub-section (1) of section 32-A) for the purposes of the business of the undertaking; or [Inserted by Act 66 of 1976, Section 21 (w.r.e.f. 1.4.1976).](c)at any time before the expiry of ten years referred to in clause (b), the assessee utilises the amount credited to the reserve account under sub-section (4) of section 32-A-(i)for distribution by way of dividends or profits; or(i)in a case referred to in clause (a), from the end of the previous year in which the sale or other transfer took place;(ii)in a case referred to in clause (b), from the end of the ten years referred to in that clause;(iii)in a case referred to in clause (c), from the end of the previous year in which the amount was utilised.(ii)for remittance outside India as profits or for the creation of any asset outside India; or(iii)for any other purpose which is not a purpose of the business of the undertaking, the investment allowance originally allowed shall be deemed to have been wrongly allowed, and the ] [Assessing Officer] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).][may, notwithstanding anything contained in this Act, recompute the total income of the assessee for the relevant previous year and make the necessary amendment; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned,- [Inserted by Act 66 of 1976, Section 21 (w.r.e.f. 1.4.1976).]Explanation. - For the purposes of clause (b), "new ship" or "new aircraft" or "new machinery or plant" shall have the same meanings as in the ][Explanation below sub-section (2) of section 32-A] [ Substituted by Act 46 of 1986, Section 32, for " Explanation to clause (1) of section 32" (w.e.f. 1.4.1988).].]
