(1)(a)[In respect of a new ship or new machinery or plant (other than office appliances or road transport vehicles) which is owned by the assessee and is wholly used for the purposes of the business carried on by him, there shall, in accordance with and subject to the provisions of this section and of section 34, be allowed a deduction, in respect of the previous year in which the ship was acquired or the machinery or plant was installed or, if the ship, machinery or plant is first put to use in the immediately succeeding previous year, then, in respect of that previous year, a sum by way of development rebate as specified in clause (b).(b)The sum referred to in clause (a) shall be,-(A)in the case of a ship, forty per cent. of the actual cost thereof to the assessee;(B)in the case of machinery or plant,-(i)where the machinery or plant is installed for the purposes of business of construction, manufacture or production of any one or more of the articles or things specified in the list in the Fifth Schedule,-(a)thirty-five per cent. of the actual cost of the machinery or plant to the assessee, where it is installed before the 1st day of April, 1970, and(b)twenty-five per cent. of such cost, where it is installed after the 31st day of March, 1970;(ii)where the machinery or plant is installed after the 31st day of March, 1967, by an assessee being an Indian company in premises used by it as a hotel and such hotel is for the time being approved in this behalf by the Central Government,-(a)thirty-five per cent. of the actual cost of the machinery or plant to the assessee, where it is installed before the 1st day of April, 1970, and(b)twenty-five per cent. of such cost, where it is installed after the 31st day of March, 1970;(iii)where the machinery or plant is installed after the 31st day of March, 1967, being an asset representing expenditure of a capital nature on scientific research related to the business carried on by the assessee,-(a)thirty-five per cent. of the actual cost of the machinery or plant to the assessee, where it is installed before the 1st day of April, 1970, and(b)twenty-five per cent. of such cost, where it is installed after the 31st day of March, 1970;(iv)in any other case,-(a)twenty per cent. of the actual cost of the machinery or plant to the assessee, where it is installed before the 1st day of April, 1970, and(b)fifteen per cent. of such cost, where it is installed after the 31st day of March, 1970.]
