ACIT v. Akkamamba Textiles Ltd.

227 ITR 464Supreme Court of India1997#9547 most cited

What is ACIT v. Akkamamba Textiles Ltd. authority for?

Processing charges, commission paid to bankers and insurance companies for obtaining loans for purchase of machinery, and upfront fees for loans are revenue expenditures deductible under Section 37 of the Income-tax Act, 1961.

11

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2008 to 2022.

Also referred to as

ACIT v. Akkamamba Textiles Ltd. · 227 ITR 464 · processing charges · loan for machinery · revenue expenditure · Section 37 · commission to bankers · insurance charges · upfront fees

Judgments citing ACIT v. Akkamamba Textiles Ltd.

Royal Orchid Hotels Ltd, Bengaluru vs. Assisstant Commissioner of Income Tax, Circle-5(1)(1), Bengaluru

In the result, this ground is allowed

ITA 793/BANG/2018[2011-12]Status: DisposedITAT Bangalore20 Sept 2022AY 2011-12

Bench: Shri George George K. & Shri Laxmi Prasad Sahuassessment Year : 2011-12

For Appellant: Shri R.B Krishna, AdvocateFor Respondent: Shri Sankar Ganesh, JCIT (DR)
Section 14ASection 194HSection 40

…Madras High Court in its decision rendered in the case of Shree Meenakshi Mills 290 ITR 107 has held that upfront fees paid for obtaining loan for purchase of machinery is revenue expenditure. The Hon'ble Supreme Court in the case of CIT Vs Akkamba Textiles, 227 ITR 464, similarly held that processing charges are revenue in nature. The on Hon'ble Supreme Court in DCII Vs. Core Health Care Ltd. reported in 298 ITR 194 overlooked the decision on the Punjab & Haryana High Court rendered in the case of CIT Vs. Vard man Polytec Ltd. wherein it was held that if capital was borrowed for establishment of a new unit then…

Tamilnadu Transmission Corporation Ltd., Chennai vs. ACIT Corporate Circle 3(1), Chennai

In the result, the both the appeals filed by the assessee are allowed

ITA 1046/CHNY/2019[2015-16]Status: DisposedITAT Chennai28 Oct 2021AY 2015-16

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.1045 & 1046/Chny/2019 िनधा"रण वष" /Assessment Years: 2014-15 & 2015-16

For Appellant: Mr. R. VijayaraghavanFor Respondent: Mr. ARV. Sreenivasan
Section 37Section 37(1)

…आयकर अपीलीय अिधकरण, ‘ए’ "ायपीठ, चे"ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI "ी वी दुगा" राव, "ाियक सद" एवं "ी जी मंजूनाथा, लेखा सद" के सम$ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.1045 & 1046/Chny/2019 िनधा"रण वष" /Assessment Years: 2014-15 & 2015-16 M/s. Tamilnadu Transmission The Asst. Commissioner of Corporation Ltd., Income Tax, No.144, NPKRR Maligai, Anna Salai, Vs. Corporate Circle-3(1), Chennai – 600 002. Chennai. [PAN: AADCT 4780A] (&'थ(/Respondent) (अपीलाथ"/Appellant) अपीलाथ( की ओर से/ Appellant by : Mr. R. Vijayaraghavan…

Tamilnadu Transmission Corporation Ltd., Chennai vs. ACIT Corporate Circle 3(1), Chennai

In the result, the both the appeals filed by the assessee are allowed

ITA 1045/CHNY/2019[2014-15]Status: DisposedITAT Chennai28 Oct 2021AY 2014-15

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.1045 & 1046/Chny/2019 िनधा"रण वष" /Assessment Years: 2014-15 & 2015-16

For Appellant: Mr. R. VijayaraghavanFor Respondent: Mr. ARV. Sreenivasan
Section 37Section 37(1)

…आयकर अपीलीय अिधकरण, ‘ए’ "ायपीठ, चे"ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI "ी वी दुगा" राव, "ाियक सद" एवं "ी जी मंजूनाथा, लेखा सद" के सम$ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.1045 & 1046/Chny/2019 िनधा"रण वष" /Assessment Years: 2014-15 & 2015-16 M/s. Tamilnadu Transmission The Asst. Commissioner of Corporation Ltd., Income Tax, No.144, NPKRR Maligai, Anna Salai, Vs. Corporate Circle-3(1), Chennai – 600 002. Chennai. [PAN: AADCT 4780A] (&'थ(/Respondent) (अपीलाथ"/Appellant) अपीलाथ( की ओर से/ Appellant by : Mr. R. Vijayaraghavan…

The Principal Commissioner of Income Tax vs. M/S. Apollo Tyres Ltd

Appeal is allowed in part as indicated

ITA/44/2017HC Kerala22 Sept 2021

Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR.JUSTICE VIJU ABRAHAM

For Appellant: M/S. APOLLO TYRES LTDFor Respondent: THE PRINCIPAL COMMISSIONER OF INCOME TAX
Section 143(3)Section 144CSection 144C(5)Section 35Section 43ASection 92C

…charged interest, commitment charges and insurance charges payable by the assessee. The said "commitment charges" was upfront payment. We have also examined the contract between IDBI and the assessee. In the case of Addl. CIT v. Akkamamba Textiles Ltd. [1997] 227 ITR 464, this court has held that com mission paid by the assessee to the banker and the insurance company was admissible deduction under section 37 of the Income-tax Act, 1961. To the same effect is the judgment of this court in the case CIT v. Sivakami Mills Ltd. [1997] 227 ITR 465. For the aforestated reasons, we answer question No. (1) in favour of t…

Brace Iron & Steel P.Ltd, New Delhi vs. Addl.CIT, Special Range-2, New Delhi

In the result, appeal of Assessee is allowed

ITA 8617/DEL/2019[2015-16]Status: DisposedITAT Delhi03 Aug 2021AY 2015-16

Bench: Shri R.K. Panda & Ms. Suchitra Kamble

For Appellant: Shri Lakshya Budhira, C.AFor Respondent: Shri Satpal Gulati, CIT-DR

…paid 4.4 lakhs towards 1 per cent upfront fee to the IFCI for availing of loan for purchase of machinery, then the same shall be allowable as a revenue expenditure in light of the decisions of the Hon’ble S.C, in Addl. CIT vs., Akkamamba Textiles Ltd., [1997] 227 ITR 464 and CIT vs., Sivakami Mills Ltd., [1997] 227 ITR 465. 8.3. Referring to the decision of the Hon’ble Supreme Court in the case of Commissioner of Income Tax vs., Rama Multi Tech Ltd., [2017] 80 taxmann.com 375 [SC] the Learned Counsel for the Assessee submitted that the Hon’ble Supreme Court in the said decision has opined that expenditure towards…

DCIT, Chennai vs. Hyundai Motors India Ltd., Kancheepuram

In the result, while CO of the assessee is dismissed, all the three appeals filed by the assessee are partly allowed in the terms indicated above, all the three appeals filed by the revenue are dis...

ITA 761/CHNY/2016[2011-2012]Status: DisposedITAT Chennai27 Apr 2017AY 2011-2012
Section 143(3)Section 253(4)

…l in nature and these charges are not in the nature of interest charges. 90. This issue also, as learned representatives agree, stands covered in favour of the assessee by Hon’ble Supreme Court’s decision in the case of ACIT Vs Akkamamba Textiles Ltd [(1997) 227 ITR 464 (SC)] whereby Their Lordships confirmed the order of Hon’ble AP High Court holding that guarantee commission paid to the bank etc for purchase of machinery is a revenue expenditure. In the present case, guarantee charges paid upto the date on which the assets are put to use are capitalized, and post capitalization of assets, the guarantee charges…

DCIT, Chennai vs. Hyundai Motor India Ltd., Kancheepuram

In the result, while CO of the assessee is dismissed, all the three appeals filed by the assessee are partly allowed in the terms indicated above, all the three appeals filed by the revenue are dis...

ITA 614/CHNY/2015[2010-11]Status: DisposedITAT Chennai27 Apr 2017AY 2010-11
Section 143(3)Section 253(4)

…l in nature and these charges are not in the nature of interest charges. 90. This issue also, as learned representatives agree, stands covered in favour of the assessee by Hon’ble Supreme Court’s decision in the case of ACIT Vs Akkamamba Textiles Ltd [(1997) 227 ITR 464 (SC)] whereby Their Lordships confirmed the order of Hon’ble AP High Court holding that guarantee commission paid to the bank etc for purchase of machinery is a revenue expenditure. In the present case, guarantee charges paid upto the date on which the assets are put to use are capitalized, and post capitalization of assets, the guarantee charges…

Hyundai Motor India Limited, Kancheepuram vs. DCIT, Chennai

In the result, while CO of the assessee is dismissed, all the three appeals filed by the assessee are partly allowed in the terms indicated above, all the three appeals filed by the revenue are dis...

ITA 563/CHNY/2015[2010-11]Status: DisposedITAT Chennai27 Apr 2017AY 2010-11
Section 143(3)Section 253(4)

…l in nature and these charges are not in the nature of interest charges. 90. This issue also, as learned representatives agree, stands covered in favour of the assessee by Hon’ble Supreme Court’s decision in the case of ACIT Vs Akkamamba Textiles Ltd [(1997) 227 ITR 464 (SC)] whereby Their Lordships confirmed the order of Hon’ble AP High Court holding that guarantee commission paid to the bank etc for purchase of machinery is a revenue expenditure. In the present case, guarantee charges paid upto the date on which the assets are put to use are capitalized, and post capitalization of assets, the guarantee charges…

Hyundai Motor India Limited, Kancheepuram vs. DCIT, Chennai

In the result, while CO of the assessee is dismissed, all the three appeals filed by the assessee are partly allowed in the terms indicated above, all the three appeals filed by the revenue are dis...

ITA 853/CHNY/2014[2009-10]Status: DisposedITAT Chennai27 Apr 2017AY 2009-10
Section 143(3)Section 253(4)

…l in nature and these charges are not in the nature of interest charges. 90. This issue also, as learned representatives agree, stands covered in favour of the assessee by Hon’ble Supreme Court’s decision in the case of ACIT Vs Akkamamba Textiles Ltd [(1997) 227 ITR 464 (SC)] whereby Their Lordships confirmed the order of Hon’ble AP High Court holding that guarantee commission paid to the bank etc for purchase of machinery is a revenue expenditure. In the present case, guarantee charges paid upto the date on which the assets are put to use are capitalized, and post capitalization of assets, the guarantee charges…

DCIT, Chennai vs. Hyundai Motor India Limited, Kancheepuram

In the result, while CO of the assessee is dismissed, all the three appeals filed by the assessee are partly allowed in the terms indicated above, all the three appeals filed by the revenue are dis...

ITA 739/CHNY/2014[2009-10]Status: DisposedITAT Chennai27 Apr 2017AY 2009-10
Section 143(3)Section 253(4)

…l in nature and these charges are not in the nature of interest charges. 90. This issue also, as learned representatives agree, stands covered in favour of the assessee by Hon’ble Supreme Court’s decision in the case of ACIT Vs Akkamamba Textiles Ltd [(1997) 227 ITR 464 (SC)] whereby Their Lordships confirmed the order of Hon’ble AP High Court holding that guarantee commission paid to the bank etc for purchase of machinery is a revenue expenditure. In the present case, guarantee charges paid upto the date on which the assets are put to use are capitalized, and post capitalization of assets, the guarantee charges…

Deputy Commnr., Income Tax, Baroda vs. Gujarat Alkalies & Chemicals Ltd

C.A. No.-003957-003958 - 2002Supreme Court08 Feb 2008
For Respondent: Gujarat Alkalies & Chemicals Ltd
Section 36(1)(iii)Section 37Section 43(1)

…http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 2 CASE NO.: Appeal (civil) 3957-3958 of 2002 PETITIONER: Deputy Commissioner, Income Tax,Baroda RESPONDENT: Gujarat Alkalies & Chemicals Ltd DATE OF JUDGMENT: 08/02/2008 BENCH: S.H. Kapadia & B. Sudershan Reddy JUDGMENT: J U D G M E N T CIVIL APPEAL NOS.3957-3958 OF 2002 KAPADIA, J. These civil appeals are filed by the Department against decision dated 25.4.01 in Tax Appeal Nos.39 and 40 of 2001 delivered by Gujarat High Court. 2. Two questions of law arise for determination in these civil appeals which are as follow: (1) Whether "commitment cha…

ACIT v. Akkamamba Textiles Ltd. (227 ITR 464) — Cited in 11 Judgments | BharatTax