“Section 33(2)”
The decision most relied on for Section 33(2) is M/s Mahadev Cold Storage v. Jurisdictional AO (43 Taxmann.com 33), cited in 262 judgments on BharatTax.
Leading authorities on Section 33(2)
Employees' contributions to welfare funds are an allowable deduction if paid before the due date for filing the income-tax return under section 139(1), even if the payment is made beyond the due date specified by the respective welfare fund Acts, as per the provisions of section 43B.
The mere absence of customer addresses, particularly for cash sales, in the books of account is not a sufficient ground to reject the books or to cast suspicion on the genuineness of the transactions.
Tax authorities cannot reject an assessee's affidavit or a retraction of an admission of income without providing an opportunity to substantiate the claims or cross-examine the deponent. Simply lacking documentary evidence is not sufficient ground for outright rejection of such evidence.
Expenditure is deductible under section 37 only if it is incurred wholly and exclusively for the purpose of business. The mere fact that a payment is made under a contract does not conclusively establish it as a business expense.
The case establishes that the Income Tax Appellate Tribunal (ITAT) has the power to confirm, reduce, or annul the assessment or penalty, as defined under Section 251(1) of the Income Tax Act, 1961. This power extends to all the matters which the Appellate Assistant Commissioner (AAC) could have considered.
Where an expense is incurred for the purpose of acquiring a capital asset, and that asset is subsequently sold, the expenditure must be considered as part of the cost of acquisition of that asset for the purpose of calculating capital gains. This is because the expense forms an integral part of the cost of acquiring the asset, not an expenditure of revenue nature.
Depreciation is not allowed on goodwill if it arises from book entries and has no identifiable cost of acquisition. This applies even when goodwill is acquired as part of a scheme of arrangement or amalgamation.
If the primary purpose of a trust is charitable, an ancillary object that is not itself charitable will not disqualify the trust from being considered a valid charity.
