Deductions not allowed

No deduction for wear and tear shall be allowed for any year if the deduction, when added to the deductions allowed on that account for any previous years to the person by whom the business or trade is carried on, will make the aggregate amount of the deductions exceed the actual cost to such person or lessor of the machinery or plant, including in that actual cost any expenditure in the nature of capital expenditure on the machinery or plant, by way of renewal improvement or re- instatement. If for the purpose of any allowance under this rule the Director General is satisfied that, owing to the absence of 52 Income and Business Tax full records, the precise date or dates of the original purchase or the cost price of the machinery or plant cannot be furnished, they may to the best of their judgment and from such information as is available, make an approximate estimate of the present written down or diminished value from cost on which to make the percentage allowance.