section 32

Impact of Waiver of Loan or Liability on Depreciation Claim

Income Tax - ISSUE FOR CONSIDERATION When a loan taken for acquiring a depreciable capital asset or a part of the purchase price of such capital asset is waived in a year subsequent to the year of acquisition, an issue that arises with respect to waiver of loan or part of the purchase price is whether the depreciation […]...

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Reduction of Goodwill from block of assets to be considered as ‘transfer’

Income Tax - It is proposed to amend the Explanation to section 133A of the Act to provided that income tax authority shall be sub-ordinate to Principal Director General or Director General or Principal Chief Commissioner or Chief Commissioner, as the case may be, specified by the Board...

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Depreciation on Livestock

Income Tax - There was a controversy whether livestock would constitute plant within the meaning of clause (3) of section 43 of the Act, that controversy has now been set at rest by the amendment of section 43(3) by the Parliament by the Finance Act, 1995 with retrospective effect from the inception of the Act, i.e., 1-4 -1962 to exclude tea bushes an...

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Rate of depreciation on computer accessories and peripherals

Income Tax - Introduction The rate of depreciation on computers and computer software is 40%. That means while calculating taxable business income, assessee can claim deduction of [email protected] 40% on computers and computer software. In order to claim depreciation @40%, the equipment should fall within the expression “computer”. If the equipment i...

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Whether Depreciation Allowed In Case Vehicle Is Not Registered In The Name of Leasing Company

Income Tax - As per Motor Vehicle Act, 1988 the registration of leased motor vehicle should be in the name of lessee and not the lessor. But in Income Tax Act, 1961 for claiming depreciation of assets, the asset must be owned by the person claiming depreciation....

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Fixed Asset Management Tool with Depreciation Calculator for Companies

Income Tax - Key Features of Fixed Asset Management Tool with Depreciation Calculator for Companies ♦ Line wise SLM and WDV Depreciation as per Companies Act 2013, ♦ Calculation of Depreciation under the Income Tax Act, ♦ Export of Tax Audit Data for Additions and Deletions during the Year ♦ Monthly Calculation for MIS...

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Additional 15% depreciation on Motor Vehicles- No TDS on cash payments by APMCs

Income Tax - Addressing the concerns raised by Agriculture Produce Market Committees (APMCs), it has been decided not to levy the 2% TDS on cash payments above Rs 1 crore made through APMCs, in order to make immediate payments to farmers for their produce. Further to the announcement made by [email protected] on 23-08-2019, an additional 15% depreciatio...

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Depreciation in case of slump sale based on proportionate number of days by transferor and transferee company- Clarify legal position- ICAI

Income Tax - The proviso to section 32 provides that the aggregate deduction, in respect of depreciation of buildings, machinery, plant or furniture, being tangible assets or know how, patents, copyrights, trademarks, licenses, franchises or any other business or commercial rights of similar nature, being intangible assets allowable to the predecessor...

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No addition for bogus purchases – Depreciation cannot be disallowed on such purchase

Divyashree Infrastructure Vs DCIT (ITAT Bangalore) - AO did not make any addition with regard to URD purchases, which were considered to be bogus or inflation of expenses, in the respective years. Without making addition of alleged bogus/inflated expenses, the A.O. could not disallow depreciation...

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Computer Software entitled to 60% depreciation

Arkema Chemicals India P. Ltd. Vs ACIT (ITAT Mumbai) - Part B of New Appendix I is a general entry whereas Entry 5 of Part A of New Appendix I is a specific entry read with Note 7. Tribunal held that assessee is eligible to claim depreciation at 60% of Computer Software....

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No Section 271(1)(c) penalty for mere disallowance of depreciation

Gulshan International Pvt. Ltd. Vs ACIT (ITAT Delhi) - ITAT held that mere disallowance of depreciation would not lead to imposition of penalty under Section 271(1)(c) , more particularly where quantum disallowance of depreciation itself is highly debatable ...

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Depreciation cannot be denied merely for Registration of cars in directors name

Shivam Water Treaters Pvt. Ltd. Vs ACIT (ITAT Ahmedabad) - Shivam Water Treaters Pvt. Ltd. Vs ACIT (ITAT Ahmedabad) The 1st issue that arises for our consideration whether the assessee is eligible to claim the depreciation on the purchase of cars in the manner as provided under section 32 of the Act. To claim the depreciation under section 32 of the Act, th...

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Depreciation allowable on finance leased assets related to Business

DCIT Vs IFCI (ITAT Delhi) - DCIT Vs IFCI (ITAT Delhi) Issue- On the facts and circumstances of the case, the Ld. CIT (A) has erred in deleting the disallowance made on depreciation of finance leased assets amounting to Rs. 1,31,63,444/- holding that it is one of the business of assessee. Held- Depreciation of finance least ass...

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Rule 8AC Computation of short term capital gains & written down

Notification No. 77/2021-Income Tax [G.S.R. 472(E)] - (07/07/2021) - CBDT inserts new Income Tax Rule 8AC -Computation of short term capital gains and written down value under section 50 where depreciation on goodwill has been obtained vide Notification No. 77/2021-Income Tax | Dated: 7th July, 2021 MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT...

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CBDT notifies Additional depreciation on Motor car & motor vehicles

Notification No. 69/2019-Income Tax [G.S.R. 679 (E).] - (20/09/2019) - Income-tax (9th Amendment) Rules, 2019 – Additional depreciation on motor cars and motor vehicles shall be allowed in certain conditions- Notification No. 69/2019-Income Tax Dated 20th September, 2019. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) Notification No....

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Commercial rights in the nature of intangible assets eligible for depreciation

I.T.A. No. 496/Delhi/2014 - (15/04/2015) - A reading of the agreement between STL and the assessee clarifies that a specific amount, i.e., Rs.9 Crores was paid by the assessee to the transferor who owned commercial rights towards the network and the facilities. The consideration was a specific value but for which the network would not have b...

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Amendment in Income Tax Rules Related to Depreciation on Fixed Assets

Notification No. 43/2014-Income Tax - (16/09/2014) - Notification No. 43/2014-Income Tax S.O. 2399(E).—In exercise of the powers conferred by Section 295 read with Section 32 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:— 1. (1) Thes...

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MVAT circular on Issuing of Tax Clearance Certificates

Trade Circular No. 1 T of 2010 - (05/01/2010) - In view of this situation, it is necessary that the procedure for the issuing of such certificates should be standardized. Such certificates are very often required to be produced before various government authorities, local bodies or other bodies etc. for the purpose of tender renewal of licenses e...

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section 32’s Popular Posts

Recent Posts in "section 32"

No addition for bogus purchases – Depreciation cannot be disallowed on such purchase

Divyashree Infrastructure Vs DCIT (ITAT Bangalore)

AO did not make any addition with regard to URD purchases, which were considered to be bogus or inflation of expenses, in the respective years. Without making addition of alleged bogus/inflated expenses, the A.O. could not disallow depreciation...

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Computer Software entitled to 60% depreciation

Arkema Chemicals India P. Ltd. Vs ACIT (ITAT Mumbai)

Part B of New Appendix I is a general entry whereas Entry 5 of Part A of New Appendix I is a specific entry read with Note 7. Tribunal held that assessee is eligible to claim depreciation at 60% of Computer Software....

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No Section 271(1)(c) penalty for mere disallowance of depreciation

Gulshan International Pvt. Ltd. Vs ACIT (ITAT Delhi)

ITAT held that mere disallowance of depreciation would not lead to imposition of penalty under Section 271(1)(c) , more particularly where quantum disallowance of depreciation itself is highly debatable ...

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Depreciation cannot be denied merely for Registration of cars in directors name

Shivam Water Treaters Pvt. Ltd. Vs ACIT (ITAT Ahmedabad)

Shivam Water Treaters Pvt. Ltd. Vs ACIT (ITAT Ahmedabad) The 1st issue that arises for our consideration whether the assessee is eligible to claim the depreciation on the purchase of cars in the manner as provided under section 32 of the Act. To claim the depreciation under section 32 of the Act, the following conditions […]...

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Depreciation allowable on finance leased assets related to Business

DCIT Vs IFCI (ITAT Delhi)

DCIT Vs IFCI (ITAT Delhi) Issue- On the facts and circumstances of the case, the Ld. CIT (A) has erred in deleting the disallowance made on depreciation of finance leased assets amounting to Rs. 1,31,63,444/- holding that it is one of the business of assessee. Held- Depreciation of finance least assets is related to the […]...

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60% depreciation eligible on UPS forming integral part of computer

Frick India Ltd. Vs DCIT (ITAT Delhi)

Frick India Ltd. Vs DCIT (ITAT Delhi) Assessee had made a claim of depreciation of Rs 60% on UPS but the AO restricted the claim of depreciation @ 15% only on the UPS and disallowed the excess 45% namely, Rs.50,320/-. It was submitted on behalf of the assessee that it is settled proposition of law […]...

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Tools, dies, jigs used for Manufacturing eligible for Additional Depreciation

Efacec Switchgear India P. Ltd. Vs ACIT (ITAT Delhi)

Efacec Switchgear India P. Ltd. Vs ACIT (ITAT Delhi) Assessee submitted that since tools, dies, jigs etc. are used by the appellant for its business of manufacturing switchgear products, the same are plant & machinery. Without these equipments it is not possible for appellant to manufacture switchgear products. Hence, the same are in...

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Vehicles let on hire eligible for higher depreciation

DCIT (OSD) Vs Jaihind Projects Ltd. (ITAT Ahmedabad)

DCIT (OSD) Vs Jaihind Projects Ltd. (ITAT Ahmedabad) It is a settled law that vehicles let on hire are eligible for higher depreciation, but in the instant facts, in our view there are apparent factual contradictions which leads us to conclude that the assessee has not been able to irrefutably establish whether vehicles were let […...

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ITAT allows Depreciation on Non-compete fees & Market information

Chemetall Rai India Limited Vs DCIT (ITAT Pune)

Chemetall Rai India Limited Vs DCIT (ITAT Pune) The only question is about the denial of depreciation on two categories of Intangible assets, namely, Non-compete fees and Market information comprising of Commercial information, Customer data, Distribution network and Suppliers contract. Apart from the assessee acquiring the Chemical busin...

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Impact of Waiver of Loan or Liability on Depreciation Claim

ISSUE FOR CONSIDERATION When a loan taken for acquiring a depreciable capital asset or a part of the purchase price of such capital asset is waived in a year subsequent to the year of acquisition, an issue that arises with respect to waiver of loan or part of the purchase price is whether the depreciation […]...

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