Sec 33 of Income Tax Act, 1961: Development allowances
Development allowance, defined under section 33A, is allowed for a deduction in the manner specified under this section in given circumstances.
In respect of the planting of tea bushes on any land in India owned by an assessee, a sum by way of development allowance equivalent to (i) where tea bushes have been planted on any land not planted at any time with tea bushes or on any land which has been previously abandoned, 50% of the actual cost of planting; and (ii) where tea bushes are planted in replacement of tea bushes that have died or have become permanently useless on any land already planted, 30% of the actual cost of planting, shall be allowed as a deduction in the manner.
Where the total income of the assessee assessable for the assessment year relevant to the previous year in respect of which the deduction is required to be allowed under sub-section (1) (the total income for this purpose being computed after deduction of the allowance under sub-section (1) or sub-section (1A) or clause (ii) of sub-section (2) of section 33, but without making any deduction under sub-section (1) of this section or any deduction under Chapter VI-A is nil or is less than the full amount of the development allowance calculated at the rates and in the manner specified in sub-section (1).
If any such land is sold or otherwise transferred by the assessee to any person at any time before the expiry of eight years from the end of the previous year in which the deduction under sub-section (1) was allowed, any allowance under this section shall be deemed to have been wrongly made for the purposes of this Act, and the provisions of sub-section (5A) of section 155 shall apply accordingly.
Other provisions of this section are much similar to the provisions of development rebate mentioned in section 33 of the income tax act.