Section 32(1)(iii) of the Income Tax Act
Income-tax Act, 2025: s.33
Section 32(1)(iii) falls under section 32 of the Income-tax Act, 1961, which corresponds to section 33 (Deduction for depreciation) of the Income-tax Act, 2025.
Read section 33 of the 2025 Act
Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.
The decision most relied on for Section 32(1)(iii) is Bharat Sanchar Nigam Ltd. v. Union of India (282 ITR 273), cited in 136 of the 42 judgments on BharatTax that turn on this section.
Leading authorities on Section 32(1)(iii)
The rule of consistency requires that in the absence of any change in material facts or law, a different view or decision on an issue cannot be adopted for subsequent assessment years, thus ensuring uniformity in tax assessments.
The Assessing Officer is bound by the rule of consistency and cannot take a contrary or different stand on an issue in a subsequent assessment year if the factual position remains identical to previous years where a deduction was allowed.
Allowing deduction of interest paid by the assessee as business expenditure u/s.37(1) of the Act is not permissible when netting off interest received against interest paid.
Once depreciation on an asset is allowed in the first year, the revenue is debarred from denying depreciation on the written-down value carried forward in subsequent years, absent a change in facts or law.
Legal and professional expenses incurred for the purpose of business are allowable as a deduction while computing taxable income.
An assessee is entitled to the benefit of Section 80JJAA as long as an employee has worked for 300 days, even if this period is split across the assessment year or financial year. The deduction under Section 80JJAA is allowed for three years, including the year employment is provided, and each year requires verification of at least 300 days of work by a non-casual employee.
