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)

General Motors India (P.) Ltd. v. Dy. CIT
25 Taxmann.com 364 · 2012 · High Court
46
citing judgments

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'.

Areva T & D India Ltd. v. DCIT
20 Taxmann.com 29 · 2012 · High Court
34
citing judgments

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).

CIT(A) v. Haryana Hotels Ltd.
276 ITR 521 · 2005 · High Court
11
citing judgments

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.

400 (SC)\nc. CIT v. Xylon
153 Taxmann.com 465 · 2023 · ITAT
7
citing judgments
Commissioner of Income-tax v. RFCI Ltd.
57 Taxmann.com 17 · 2015 · Reported
6
citing judgments
Pr. CIT v. Petrofils Co-operative Limited
130 Taxmann.com 191 · 2021 · Supreme Court
5
citing judgments
Pr. CIT v. Petrofils Co-operative Limited
130 Taxmann.com 190 · 2021 · High Court
4
citing judgments
CIT v. KMC Speciality Hospitals India Private Limited
130 Taxmann.com 215 · 2021 · High Court
4
citing judgments
CIT v. Govind Nagar Sugar Ltd.
334 ITR 13 · 2011 · High Court
4
citing judgments
CIT v. Estate & Finance Ltd.
111 ITR 119 · 1978 · High Court
3
citing judgments

Judgments on Section 32(2)

Raj Teleision Network Limited, Chennai vs. ACIT, Non Corporae Circle-20, Chennai

In the result both appeals of the assessee are allowed

ITA 530/CHNY/2024[2014-15]Status: DisposedITAT Chennai09 Aug 2024AY 2014-15

Bench: Shri Aby T Varkey, Hon’Ble & Shri S.R.Raghunatha, Hon’Bleआयकरअपीलसं./Ita Nos.: 530 & 531/Chny/2024 िनधा"रणवष" / Assessment Years: 2014-15 & 2018-19 Acit, Raj Television Network V. Non Corporate Circle 20, Limited, Chennai – 34. No. 32, Poes Road 2Nd Street, Teynampet, Chennai – 600 018. [Pan: Aaacr-3580-P] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ"क"ओरसे/Appellant By : Shri.K. Balasubramanian, Advocate ""यथ"क"ओरसे/Respondent By : Shri.T.M. Suganthamala, Addl. Cit सुनवाई क" तारीख/Date Of Hearing : 31.07.2024 घोषणा क" तारीख/Date Of Pronouncement : 09.08.2024 आदेश /O R D E R

For Appellant: Shri.K. Balasubramanian, AdvocateFor Respondent: Shri.T.M. Suganthamala, Addl. CIT
Section 263

Polakulath Narayanan Renai Medicity, Kochi vs. The DCIT Non Corp Circle 1(1), Kochi

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 253/COCH/2023[2014-15]Status: DisposedITAT Cochin05 Aug 2024AY 2014-15

Bench: Shri Chandra Poojari & Shri Soundararajan K.Polakulath Narayanan Renai Dcit, Non Corporate Circle 1(1) Medicity C.R. Building, I.S. Press Road Main Road, Palarivattom Vs. Kochi 682018 Kochi 682025 Pan – Aaifp7597B (Appellant) (Respondent) Assessee By: Shri Mathew Joseph, Ca Revenue By: Ms. Swarnalatha, Sr.Dr Date Of Hearing: 10.07.2024 Date Of Pronouncement: 05.08.2024 O R D E R Per: Soundararajan K.,J.M. This Appeal Filed By The Assessee Challenges The Order Of The National Faceless Appeal Centre, Delhi [Cit(A)] Dated 23.04.2023 In Respect Of Assessment Year (Ay) 2014-15. 2. The Brief Facts Of The Case Are That The Assessee Is Running A Hospital & During The Assessment Year The Assessing Authority Had Capitalised The Interest Component Of The Interior Works For The Reason That The Work Was Done Over A Period Of Time & Hence The Interest Till The Completion Of The Work Is To Be Capitalised. The Assessing Officer (Ao) Also Capitalised The Interest Component On The Capital Asset I.E.On The Sewage Plant Since The Same Was Put Into Use At The Fag End Of The Assessment Year. The Ao Also Treated The Interest On Fixed Deposits As Margin Money Under The Head ‘Income From Other

For Appellant: Shri Mathew Joseph, CAFor Respondent: Ms. Swarnalatha, Sr.DR
Section 139(5)

Sindoori Traders Pvt Ltd., Mumbai vs. DCIT-11(2)(1), Mumbai

Appeal is allowed for statistical purposes

ITA 3780/MUM/2023[2015-16]Status: DisposedITAT Mumbai24 Jul 2024AY 2015-16

Bench: Shri Satbeer Singh Godara & Shri Omkareshwar Chidaraassessment Year: 2015-16

For Appellant: Shri Tanzil R. Padvekar, A.RFor Respondent: Shri Manish Ajudiya, Sr. A.R
Section 143(3)Section 147Section 148Section 32(2)Section 50C

Autograph Cars (India) Private Limited, Bandra East, Mumbai vs. Deputy Commissioner of Income Tax Circle 14(1)(1), Mumbai

In the result, the appeal of the assessee is dismissed

ITA 2942/MUM/2023[2013-14]Status: DisposedITAT Mumbai16 May 2024AY 2013-14

Bench: Shri Anikesh Banerjee & Shri Gagan Goyalm/S. Autograph Cars (India) Pvt. Ltd., Flat No. 2130, Building No. 42, Anand Chs, Gandhi Nagar, Bandra East, Mumbai - 400 051. Pan: Aafca 0420J ...... Appellant Vs. Dy. Commissioner Of Income, Circle-14(1), Aayakar Bhawan, M.K. Road, Mumbai – 400 020. ..... Respondent

For Appellant: Shri Mohammed Obaid Ansari, Ld. ARFor Respondent: Shri Manoj Kumar Sinha, Ld. Sr. DR
Section 250Section 32(2)Section 41(1)Section 80

Gati Kintetsu Express Pvt. Ltd, Maharashtra and Mumbai vs. Dy. Commissioner of Income Tax, Circle 14(1)(2), Mumbai, Maharashtra and Mumbai

ITA 2829/MUM/2023[ASS YEAR 2013-2014]Status: DisposedITAT Mumbai13 May 2024

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail ()

For Respondent: Mr. Madhur Agrawal
Section 143(3)Section 250

M/S. Vogue Fabrics, New Delhi vs. DCIT, Panipat

In the result, appeal of the assessee is allowed for statistical purpose

ITA 2890/DEL/2017[2012-13]Status: DisposedITAT Delhi03 Jan 2024AY 2012-13

Bench: Shri N.K. Billaiya & Shri Yogesh Kumar Us

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Shri Anuj Garg, Sr. DR
Section 143(3)Section 154Section 32(2)

Assistant Commissioner of Income Tax, Bangalore vs. Manipal Resorts Company Private Limited, Bangalore

In the result, the appeal by the revenue is dismissed

ITA 778/BANG/2023[2016-17]Status: DisposedITAT Bangalore13 Dec 2023AY 2016-17

Bench: Shri George George K. & Shri Laxmi Prasad Sahuassessment Year : 2016-17

For Appellant: Shri Subramanian, S., Jt. CIT(DR)(ITAT), BangaloreFor Respondent: Shri S.K. Tulsiyan, Advocate
Section 143(1)Section 154Section 154(7)Section 32(2)

J B Advani and Company Private Limited, Mumbai vs. Assistant Commissioner of Income Tax, Mumbai

In the result, the appeal filed by the assessee is allowed

ITA 2544/MUM/2023[2015-16]Status: DisposedITAT Mumbai01 Nov 2023AY 2015-16

Bench: Shri Pavan Kumar Gadalej.B Advani & Company Vs. Acit, Circle 2(2)(1), Pvt Ltd.,Ador House, 4Th Aayakar Bhavan, Floor, 6 K, Dubashmarg, Mumbai-400021. Kalghoda,Liongate,Fort, Mumbai-400001. Pan/Gir No. : Aaacj1966D Appellant .. Respondent

For Appellant: Shri. Paras Savla & Shri PratikFor Respondent: Shri.G.J.Ninawe.Sr. DR
Section 143(2)Section 143(3)Section 234DSection 244ASection 32Section 32(2)Section 70Section 71(2)

Sureprep (India) P.Ltd, Mumbai vs. DCIT RG 8(3), Mumbai

In the result, appeal of assessee is allowed

ITA 8818/MUM/2011[2007-08]Status: DisposedITAT Mumbai31 Oct 2023AY 2007-08
Section 10ASection 143(3)Section 263Section 32(2)

Deputy Commissioner of Income-Tax, Circle -3, Nashik vs. Windsor Machines Ltd., Mumbai

In the result, the appeal of Revenue is partly allowed

ITA 915/PUN/2022[2011-12]Status: DisposedITAT Pune20 Oct 2023AY 2011-12

Bench: Shri S.S. Viswanethra Ravi & Shri G.D. Padmahshali

For Appellant: Shri Kishor B. PhadkeFor Respondent: Shri Ajay Kumar Kesari
Section 3Section 32(2)

Deputy Commissioner of Jncome Tax, Circel-3, Nagpur vs. M/S. Acc Nihon Casting Lt, Nagpur

Appeal is dismissed

ITA 249/NAG/2018[2008-09]Status: DisposedITAT Nagpur28 Sept 2023AY 2008-09

Bench: Shri Satbeer Singh Godara & Dr. Dipak Ripote

For Appellant: Shri Abhay Agrawal, AdvocateFor Respondent: Shri Kailash Kanojiya, Sr. DR
Section 143(3)Section 32(2)

Sterling Holiday Resorts Limited (on Behalf of Erstwhile Sterling Holiday Resorts(India) Limited), Mumbai vs. The Pr. CIT-2, Mumbai

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 3793/MUM/2019[2014-15]Status: DisposedITAT Mumbai21 Aug 2023AY 2014-15

Bench: Shri Aby T. Varkey, Jm & Shri Om Prakash Kant, Am आयकर अपील सं/ I.T.A. No.3793/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2014-15) Sterling Holiday Resorts बिधम/ Pcit-2 Limited (On Behalf Of Room No.344, 3Rd Floor, Vs. Erstwhile Sterling Holiday Aayakar Bhavan, Resorts (India) Limited) Mumbai-400020. Thomas Cook Building, D. N. Road, Fort, Mumbai- 400001. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aabct7079G (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Ketan Ved Revenue By: Smt Anne Varghese (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 14/07/2023 घोषणा की तारीख /Date Of Pronouncement: 21/08/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Action Of The Ld. Principal Commissioner Of Income Tax-02, Mumbai Dated 25.03.2019 For Assessment Year 2014-15 Passed Under Section 263 Of The Income Tax Act, 1961 (Hereinafter Referred To As “The Act”). 2. At The Outset, The Ld. Ar Of The Assessee Submitted That The Only Issue On Which The Ld. Pcit Has Invoked His Revisional Jurisdiction U/S 263 Of The Act Is In Respect Of Following Issues: - (A) Carry Forward Unabsorbed Depreciation For Ay. 2004-5 To 2009-10 Of M/S. Manchanda Resorts Pvt. Ltd. Amounting To Rs.54,29,744/-. (B) Carry Forward Unabsorbed Depreciation For Ay. 2005-06, 2008-09 Of M/S. Sterling Holiday Resorts (I) Ltd., Amounting To Rs.5,51,57,288/-. (C) Carry Forward Business Loss Of M/S. Manchanda Resorts Pvt. Ltd. For Ay. 2009-10 & 2010-11 Amounting To Rs.7,16,96,555/-.”

For Appellant: Shri Ketan VedFor Respondent: Smt Anne Varghese (Sr. AR)
Section 263Section 32(2)Section 72A

M/S Bharat Coking Coal Ltd, Dhanbad vs. ACIT Circle-1, Dhanbad

In the result, all the captioned appeals are hereby dismissed

ITA 123/RAN/2018[09-10]Status: DisposedITAT Ranchi07 Jul 2023

Bench: Shri Sanjay Garg & Dr. Manish Boradi.T.A No.299/Ran/2017 Assessment Year: 2009-10 Acit,Central-1, Dhanbad............................................................……Appellant Vs. M/S Bharat Coking Coal Ltd........................................……...…..…..Respondent Koyla Bhawan, Koyla Nagara, Dhanbad—826005 [Pan: Aaacb7934M] I.T.A No.123/Ran/2018 Assessment Year: 2009-10 M/S Bharat Coking Coal Ltd........................................................…… Respondent Koyla Bhawan, Koyla Nagara, Dhanbad—826005 [Pan: Aaacb7934M] Vs. Acit,Central-1, Dhanbad..............................................……...…..….. Appellant C.O No.08/Ran/2018 (In Ita No.299/Ran/2017) Assessment Year: 2009-10 M/S Bharat Coking Coal Ltd..................................................... …Cross-Objector Koyla Bhawan, Koyla Nagara, Dhanbad—826005 [Pan: Aaacb7934M] Vs. Acit,Central-1, Dhanbad..............................................……...…..….. Appellant Appearances By: Shri Rinku Singh, Cit- Dr., Appeared On Behalf Of The Appellant. Shri M. K. Choudhary With Devesh Poddar, Adv Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : May 23, 2023 Date Of Pronouncing The Order : July 07, 2023

Section 250Section 32(2)

ACIT Cir-1, Dhanbad vs. M/S Bharat Cooking Coal Ltd, Dhanbad

In the result, all the captioned appeals are hereby dismissed

ITA 299/RAN/2017[09-10]Status: DisposedITAT Ranchi07 Jul 2023

Bench: Shri Sanjay Garg & Dr. Manish Boradi.T.A No.299/Ran/2017 Assessment Year: 2009-10 Acit,Central-1, Dhanbad............................................................……Appellant Vs. M/S Bharat Coking Coal Ltd........................................……...…..…..Respondent Koyla Bhawan, Koyla Nagara, Dhanbad—826005 [Pan: Aaacb7934M] I.T.A No.123/Ran/2018 Assessment Year: 2009-10 M/S Bharat Coking Coal Ltd........................................................…… Respondent Koyla Bhawan, Koyla Nagara, Dhanbad—826005 [Pan: Aaacb7934M] Vs. Acit,Central-1, Dhanbad..............................................……...…..….. Appellant C.O No.08/Ran/2018 (In Ita No.299/Ran/2017) Assessment Year: 2009-10 M/S Bharat Coking Coal Ltd..................................................... …Cross-Objector Koyla Bhawan, Koyla Nagara, Dhanbad—826005 [Pan: Aaacb7934M] Vs. Acit,Central-1, Dhanbad..............................................……...…..….. Appellant Appearances By: Shri Rinku Singh, Cit- Dr., Appeared On Behalf Of The Appellant. Shri M. K. Choudhary With Devesh Poddar, Adv Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : May 23, 2023 Date Of Pronouncing The Order : July 07, 2023

Section 250Section 32(2)

The ACIT Circle- 1 (1), Rajkot vs. M/S. Micro Melt Pvt. Ltd., Shapar (Veraval), Rajkot

In the result, the appeal of the Department is dismissed

ITA 41/RJT/2023[2005-06]Status: HeardITAT Rajkot16 Jun 2023AY 2005-06

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

For Appellant: Shri M. N. Manvar, A.RFor Respondent: Shri K. L. Solanki, Sr. DR
Section 154

Kings Infra Ventures Ltd, Thevara vs. Assistant Commissioner of Income Tax Circle 1 (2), Kochi

In the result, the appeal by the assessee is dismissed

ITA 25/COCH/2017[2011-2012]Status: DisposedITAT Cochin24 Apr 2023AY 2011-2012

Bench: Shri Sanjay Arora & Shri Sandeep Gosainkings Infra Ventures Ltd. Asstt. Commissioner Of A-1, 1St Floor, Atria Apartment Income Tax, Opp. Gurudwara Temple Vs. Circle - 1(2) Perumanur Road Kochi Thevara, Kochi [Pan:Aaccv3411D] (Respondent) (Appellant) Appellant By: Shri Joseph Markose, Sr. Advocate Respondent By: Smt. J.M. Jamuna Devi, Sr. D.R.

For Appellant: Shri Joseph Markose, Sr. AdvocateFor Respondent: Smt. J.M. Jamuna Devi, Sr. D.R
Section 139(1)Section 143(3)

ACIT Cir-1, Dhanbad vs. M/S Bharat Coking Coal Ltd, Dhanbad

In the result, appeal of the revenue is dismissed and appeal by the assessee is partly allowed as well as cross-objection by the assessee is allowed

ITA 298/RAN/2017[08-09]Status: DisposedITAT Ranchi31 Mar 2023

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 31(1)Section 32(1)Section 32(2)

M/S Bharat Cooking Coal Limited, Dhanbad vs. ACIT Circle-1, Dhanbad

In the result, appeal of the revenue is dismissed and appeal by the assessee is partly allowed as well as cross-objection by the assessee is allowed

ITA 290/RAN/2017[08-09]Status: DisposedITAT Ranchi31 Mar 2023

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 31(1)Section 32(1)Section 32(2)

ACIT, Chennai vs. M/S Empee Sugars & Chemicals Ltd, Chennai

In the result, appeal filed by the Revenue in ITA No

ITA 842/CHNY/2022[2008-2009]Status: DisposedITAT Chennai24 Mar 2023AY 2008-2009

Bench: Shri Aby T. Varkey & Shri Manjunatha. Gआयकर अपील सं./Ita Nos.841 & 842/Chny/2022 िनधा"रण वष" /Assessment Years: 2007-08 & 2008-09 The Asst. Commissioner- V. M/S.Empee Sugars & Of Income Tax, Chemicals Ltd., Central Circle-1(2), 59, Empee Tower, Pudupet, Chennai. Chennai.

For Appellant: NoneFor Respondent: Mr.D.Hema Bhupal, JCIT
Section 32Section 32(2)

ACIT, Chennai vs. M/S Empee Sugars & Chemicals Ltd, Chennai

In the result, appeal filed by the Revenue in ITA No

ITA 841/CHNY/2022[2007-2008]Status: DisposedITAT Chennai24 Mar 2023AY 2007-2008

Bench: Shri Aby T. Varkey & Shri Manjunatha. Gआयकर अपील सं./Ita Nos.841 & 842/Chny/2022 िनधा"रण वष" /Assessment Years: 2007-08 & 2008-09 The Asst. Commissioner- V. M/S.Empee Sugars & Of Income Tax, Chemicals Ltd., Central Circle-1(2), 59, Empee Tower, Pudupet, Chennai. Chennai.

For Appellant: NoneFor Respondent: Mr.D.Hema Bhupal, JCIT
Section 32Section 32(2)