Sessional_Paper_1940 — Page 24

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Deductions

be prescribed for specified classes of machinery, etc., or, where no such rates have been prescribed, at such rates as the Commissioner in his discretion considers reasonable.

(b) where any plant, machinery, or fixtures used in producing the profits of any trade or business have been sold or discarded without the said trade or business ceasing, the loss attributable to the excess of the written-down value over the sum, if any, realized or likely to be realized by the sale thereof.

Provided that--

(i) any corresponding profit shall be treated as a receipt of the trade or business, and

(ii) where such plant, machinery or fixtures were only partly used or employed in such trade or business the deduc- tion or addition under this sub-section shall be proportionately reduced;

(c) any sum expended for the repair (but not renewal) of plant, machinery, or fixtures employed in producing the profits or for the renewal or repair of any premises, imple- ment, utensils, or article so employed:

Provided that any person may claim as regards his plant, machinery, or fixtures that the cost of renewal be deducted in place of the depreciation and loss mentioned in paragraphs (a) and (b) of this sub-section, and his claim shall be allowed on such conditions as the Commissioner may prescribe;

(d) such sum as the Commissioner in his discretion considers reasonable for bad debts incurred in any trade or business, which have become bad during the period of which the protits are being ascertained, and for doubtful debts to the extent that they are estimated to have become bad during the said period, notwithstanding that such bad or doubtful debts were due and payable prior to the commencement of the said period:

Provided that all sums recovered during the said period on account of amounts previously written off or allowed in respect of bad or doubtful debts shall for the purposes of this Ordinance be treated as receipts of the trade or business for that period,

(e) interest paid or payable.

17. (1) For the purpose of ascertaining profits no not allowed. deduction shall be allowed in respect of-

(a) domestic or private expenses, including the cost of travelling between residence and place of business;

(b) any disbursements or expenses not being money expended for the purpose of producing the profits;

(c) any expenditure of a capital nature or any loss of capital;

(d) the cost of any improvements;

(e) any sum recoverable under an insurance or contract

of indemnity;

(f) rent of, or expenses in connexion with, any premises or part of premises not occupied or used for the purpose of producing the profits;