s 29C Investment tax allowance for application under section 26B which has been approved under section 27B
(1) Where a company which has been granted approval under section 27B has incurred in the basis period for a year of assessment in respect of a promoted activity or promoted product in a promoted area capital expenditure for the purposes of that promoted activity or promoted product, there shall be given to the company for that year of assessment an investment tax allowance of eighty per cent of that expenditure. (2) An allowance for expenditure given under subsection (1)β (a) subject to subsection (5), shall be given only for the year of assessment in the basis period for which that expenditure was incurred; (b) shall be given in respect of expenditure incurred within five years from the date from which the approval is to take effect; (c) subject to subsection (3), shall be given in respect of the manufacturing activity in an integrated agricultural activity for any expenditure incurred within another period of five years from a date to be determined by the Minister, being a date within or after the period mentioned in paragraph (2)(b): Provided thatβ (i) where a company incurs capital expenditure from the date from which the approval is to take effect referred to in paragraph (2)(b) in relation to a business which it is about to carry on in respect of a promoted activity or promoted product in a promoted area, that expenditure shall be deemed to be incurred in the basis period in which it commences to carry on the business; and (ii) where a company incurs capital expenditure prior to its application under section 26B and where the approval under section 27B is granted retrospectively from a date earlier than the date on which the application is made, the allowance under this section in respect of that expenditure shall be given, subject to subsection (5), only for the year of assessment in the basis period in which the company is notified of the approval of the application. (3) Where a company has been granted approval under section 27B in respect of an integrated agricultural activity, such company shall, within six years from the date of such approval, provide the Minister with such particulars as may be prescribed for the purposes of determination of the date under paragraph (2)(c). (4) Where an allowance is given to a company under subsection (1) for a year of assessment, so much of the statutory income of the business of the company in respect of a promoted activity or promoted product for that year of assessment as is equal to the amount of the allowance (or to the aggregate amount of any such allowance, as the case may be) shall be exempt from tax under the principal Act: Provided that the amount so exempt shall not exceed eighty-five per cent of the statutory income of that business of the company for that year of assessment. (5) Where, by reason of an insufficiency or absence of statutory income of the business of the company in respect of a promoted activity or promoted product for a year of assessment, effect cannot be given or cannot be given in full to any allowance to which the company is entitled under this section for that year in relation to the source consisting of that business, then, notwithstanding subsections (1), (2) and (4), so much of the allowance in question as cannot be given for that year shall be deemed to be an allowance to be given to the company under this section for the first subsequent year of assessment for which there is statutory income from that business, and so on for subsequent years of assessment until the company has received the whole of the allowance to which it is so entitled. (6) Where any income is exempt from tax by virtue of subsection (4), section 23 shall apply to that income (with any necessary modifications) as it applies to income exempt under section 22. (7) Subsections 29(7) and (8) relating to capital expenditure shall apply, mutatis mutandis, for the purposes of this section.