“Section 288(2)”
The decision most relied on for Section 288(2) is SA Builders, 288 ITR 1 (SC) and CIT v. Panipat Woollen and General Mills Company Ltd. (103 ITR 66), cited in 105 judgments on BharatTax.
Leading authorities on Section 288(2)
The Income Tax Department cannot sit in the armchair of a businessman or question their commercial wisdom and business decisions. Expenses incurred for business expediency, determined from the businessman's point of view, are allowable business expenses.
Employee contributions to specified funds (like PF/ESI) are deductible under section 36(1)(va) even if paid beyond the statutory due dates, provided they are remitted before the due date for filing the income-tax return.
When a business is purchased as a going concern, the consideration paid in excess of the value of its tangible assets is classified as goodwill, which is an intangible asset eligible for depreciation without needing a separate valuation.
Interest and other income are not considered to be 'derived from' the business and are therefore not eligible for deduction under Section 80IA. Separate additions cannot be made for investments in movable property if the source of such investment has already been subjected to tax.
