Section 23-A First Year Allowance in Income Tax Ordinance 2001 and as per Lawkidunya, the word First Year Allowance means, Plant, machinery and equipment installed by any industrial undertaking set up in specified rural and under developed areas 6[or engaged in the manufacturing of cellular mobile phones and qualifying for exemption under clause (126-N) of Part I of the Second Schedule and owned and managed by a company shall be allowed first year allowance in lieu of initial allowance under section 23 at the rate specified in Part II of the Third Schedule against the cost of the “eligible depreciable assets” put to use after July 1, 2008.
(2) The provisions of section 23 except sub-sections (1) and (2) thereof, shall mutatis mutandis apply.
(3) The Federal Government may notify “specified areas” for the purposes of sub-section