Section 32(2) of the Income Tax Act
Income-tax Act, 2025: s.33
Section 32(2) 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(2) is General Motors India (P.) Ltd. v. Dy. CIT (25 Taxmann.com 364), cited in 46 of the 321 judgments on BharatTax that turn on this section.
Leading authorities on Section 32(2)
Section 44AB (tax audit) does not apply where the assessee is not engaged in a business or profession and consequently has no income under the head 'profits and gains from business or profession'.
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).
An assessee is not legally required to file a return within the time prescribed under Section 139(1) to carry forward and set off unabsorbed depreciation.
