“Section 80(2)(ii)”
The decision most relied on for Section 80(2)(ii) is Vania Silk Mills (P.) Ltd. v. CIT (191 ITR 647), cited in 38 judgments on BharatTax.
Leading authorities on Section 80(2)(ii)
Extinguishment of rights in a capital asset includes transfer and attracts capital gains computation provisions. Demolition and conversion of a building into scrap constitutes a form of transfer.
Specified intangible assets like business claims, information, records, contracts, employees, and know-how acquired under a slump sale are considered 'business or commercial rights' eligible for depreciation under section 32(1)(ii).
The transfer of assets from an existing unit to a new unit does not automatically attract Section 15C(2)(ii) if the value of the transferred assets is less than twenty percent of the total value of assets of the new unit. This decision clarifies when a new unit's operations are considered distinct from an old unit's operations.
Education cess is not an allowable deduction under section 37(1) read with section 40(a)(ii) of the Income Tax Act, 1961. This is because it is in the nature of a tax, not an expenditure incurred for the purpose of business.
