Section 43 of the Income Tax Act
Income-tax Act, 2025: ss.39, 41
Section 43 of the Income-tax Act, 1961 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 is CIT v. Artex Manufacturing Co. (227 ITR 260), cited in 36 of the 78 judgments on BharatTax that turn on this section.
Leading authorities on Section 43
In a slump sale, the slump purchase price cannot be apportioned among individual assets for claiming depreciation, as there is no indication of the price attributable to specific assets out of the total sale consideration.
In a slump sale of a business undertaking, the slump purchase price cannot be apportioned amongst individual assets for the purpose of claiming depreciation if no item-wise value was assigned in the purchase agreement.
Subsidies received after commencement of production are of a revenue character and are taxable accordingly, particularly when the purpose of the subsidy is to assist in carrying out business operations rather than setting up the business.
Periodic maintenance expenses incurred on a road constructed under a concessionaire agreement are allowable as a deduction under Section 37, even if such repair work is carried out only in the 5th year.
When an assessee receives a subsidy towards the cost of capital assets, that subsidy must be reduced from the cost of the fixed assets for the purpose of calculating depreciation. This reduction affects the Written Down Value (WDV) of the asset.
Land classified as agricultural by the District Collector is considered agricultural land for tax purposes, regardless of the owner's intention to use it for industrial purposes or the absence of agricultural operations.
