Section 43(6)(c) of the Income Tax Act
Income-tax Act, 2025: ss.39, 41
Section 43(6)(c) falls under section 43 of the Income-tax Act, 1961, which corresponds to section 39 (Computation of actual cost) and section 41 (Written down value of depreciable asset) of the Income-tax Act, 2025.
Read section 39 of the 2025 ActRead section 41 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 43(6)(c) is Marketing Pvt. Ltd. v. DCIT (122 Taxmann.com 40), cited in 41 of the 42 judgments on BharatTax that turn on this section.
Leading authorities on Section 43(6)(c)
Where goodwill is recorded pursuant to a merger based on purchase consideration determined by a valuation report, and no goodwill is transferred from the predecessor's books, the fifth proviso to section 32(1) of the Income-tax Act, 1961, is not applicable, and thus depreciation on such goodwill is not allowable.
The Assessing Officer can apply Rule 8D for disallowance under Section 14A only if they are not satisfied with the correctness of the assessee's claim regarding expenditure in relation to exempt income, after considering the assessee's accounts. Invocation of Rule 8D is not automatic.
The Tribunal has the discretion to admit additional evidence in the interest of justice if it deems it necessary for the proper adjudication of a matter, even if the application is filed by a party to the appeal and not solely on the Tribunal's own initiative.
