1. (2)' new machinery or plant" includes machinery or plant which before its installation by the assessee was used outside India by any other person, if the following conditions are fulfilled, namely:- (a) such machinery or plant was not, at any time previous to the date of such installation by the assessee, used in India; (b) such machinery or plant is imported into India from any country outside India; and (c) no deduction on account of depreciation in respect of such machinery or plant has been allowed or is allowable under the provisions of the Indian Income- tax Act, 1922 (11 of 1922 ), or this Act in computing the total income of any person for any period prior to the date of the installation of the machinery or plant by the assessee; (3) an industrial undertaking shall be deemed to be a small scale industrial undertaking, if the aggregate value of the machinery and plant installed, as on the last day of the previous year, for the purposes of the business of the undertaking does not exceed seven hundred and fifty thousand rupees; and for this purpose the value of any machinery or plant shall be,- (a) in the case of any machinery or plant owned by the assessee, the actual cost thereof to the assessee; and (b) in the case of any machinery or plant hired by the assessee, the actual cost thereof as in the case of the owner of such machinery or plant.'

1. Prior to the omission, sub- section (1A), as inserted by the Taxation Laws (Amendment) Act, 1970, w. e. f. 1- 4- 197 1, read as under:" (1A) Where the business or profession is carried on in a building not owned by the assessee but in respect of which the assessee holds a lease or other right of occupancy and any capital expenditure is incurred by the assessee for the purposes of the business or profession after the 31st day of March, 1970, on the construction of any structure or doing of any work in or in relation to, and by way of renovation or extension of, or improvement to, the building then, in respect of depreciation of such structure or work, the following deductions shall, subject to the provisions of section 34, be allowed:- (i) such percentage on the written down value of the structure or work as may in any case or class of cases be prescribed; (ii) in the case of any such structure or work which is sold, discarded, demolished, destroyed or is surrendered as a result of the determination of the lease or other right of occupancy in respect of the building in the previous year (other than the previous year in which it is constructed or done) the amount by which the moneys payable in respect of such structure or work together with the amount of scrap value if any, fall short of the written down value thereof: Provided that such deficiency is actually written off in the books of the assessee. Explanation.- For the purposes of this clause,-, (i)" moneys payable", in respect of any structure or work, includes- (a) any insurance or compensation moneys payable in respect thereof; (b) where the structure or work is sold, the price for which it is sold; and (ii)" sold" shall have the meaning assigned to it in the Explanation to clause (iii) of sub- section (1)."

2. The words" or, if the assessee is a registered firm or an unregistered firm assessed as a registered firm, in the assessment of its partners" omitted by the Finance