industrial building or structure in use on the said preceding
day for the purposes of a trade or business carried on by a
person entitled to the relevant interest in the building or
structure; and
(ii) the basis period of that person for the year
of assessment had ended on the said preceding day; and
(111) the anmial allowance had been made to him
for the year of assessment accordingly.
38.
(1) Where, in or after the basis period for the year
of assesment 1947/48 person carrying on trade profession
or business incurs ospital expenditure on the provision of
machinery or plant for the purposes of that trade, profession
or business, there shall be made to him, for the year of
assesment in the basis period for which the expenditure is
incurred an allowance, to be known as an "initial allowance"
equal to one-fifth of that expenditure.
64
(2) Where at the end of the basis period for any
year of assessment a person has in use machinery or plant for
purpose of his trade, profession or business there shall be
him in respect of that year of assessment an allowance
to be known as an "anmal allowance" for depreciation by wear
and tear of those assets. The allowance shall be calculated
made
at
rates prescribed by the Board of Income Tax and shall
be computed on the reducing value of the asset, which shall
be the original cost of the asset reduced by
(1) any initial allowance granted in accordance
with the provisions of section 38; and
(ii) by the annual allowances made under the
provisions of this section.
Provided that
(1) where the asset was acquired before the
basis period in respect of the year of assessment 1947/48 the
value at the end of the basis period shall be computed by
deducting from the mount paid for the asset by its present
owner annual allowances as if this subsection had been in
/force