ACIT v. Sanghvi Savla Stock Brokers Ltd.

152 ITD 820Income Tax Appellate Tribunal2014#9262 most cited

What is ACIT v. Sanghvi Savla Stock Brokers Ltd. authority for?

Expenditure on computer software is revenue in nature if it does not have a long-term enduring benefit due to rapid technological changes and obsolescence.

12

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2016 to 2022.

Also referred to as

ACIT v. Sanghvi Savla Stock Brokers Ltd. · software expenses · revenue expenditure · capital expenditure · enduring benefit · obsolete software · technology upgrade · business operations

Also reported as

43 Taxmann.com 323

Issues it is cited on

section 4(1)section 71section 127(2)section 47section 70trctransfer of capital assetmlisection 2(14)computer softwaresection 48enduring benefit

Judgments citing ACIT v. Sanghvi Savla Stock Brokers Ltd.

Dy CIT Central Cir-2(3), Mumbai vs. Amit Avinash Bhosale, Pune

In the result, appeal filed by the Revenue for the A

ITA 166/MUM/2021[2015-16]Status: DisposedITAT Mumbai11 Jan 2022AY 2015-16

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Pavan Kumar Gadale, Hon'Ble

For Appellant: Shri Vijay MehtaFor Respondent: Ms. Shailja Rai
Section 10(38)Section 127(2)Section 132Section 153A

…me to time and not having long term enduring benefit were required to be treated as revenue in nature. He, in this respect, has relied upon the decision of the coordinate bench of this Tribunal in the case of "ACIT vs. Sanghvi Savla Stock Brokers Ltd." (2014) 43 Taxmann.com 323 (Mum Trib.). The Tribunal in the said decision has very elaborately discussed about the nature of the software expenses and has observed that software keep on changing at a very past pace with the growing requirement in the day to day business. Most of the software become obsolete in short span and new and upgraded versions are required fo…

Dy. CIT CC- 2(3), Mumbai vs. Amit Avinash Bhosale, Pune

In the result, appeal filed by the Revenue for the A

ITA 165/MUM/2021[2018-19]Status: DisposedITAT Mumbai11 Jan 2022AY 2018-19

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Pavan Kumar Gadale, Hon'Ble

For Appellant: Shri Vijay MehtaFor Respondent: Ms. Shailja Rai
Section 10(38)Section 127(2)Section 132Section 153A

…me to time and not having long term enduring benefit were required to be treated as revenue in nature. He, in this respect, has relied upon the decision of the coordinate bench of this Tribunal in the case of "ACIT vs. Sanghvi Savla Stock Brokers Ltd." (2014) 43 Taxmann.com 323 (Mum Trib.). The Tribunal in the said decision has very elaborately discussed about the nature of the software expenses and has observed that software keep on changing at a very past pace with the growing requirement in the day to day business. Most of the software become obsolete in short span and new and upgraded versions are required fo…

Dy CIT CC-2(3), Mumbai vs. Avinash Nivrutti Bhosale, Pune

In the result, appeal filed by the Revenue for the A

ITA 123/MUM/2021[2015-16]Status: DisposedITAT Mumbai11 Jan 2022AY 2015-16

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Pavan Kumar Gadale, Hon'Ble

For Appellant: Shri Vijay MehtaFor Respondent: Ms. Shailja Rai
Section 10(38)Section 127(2)Section 132Section 153A

…me to time and not having long term enduring benefit were required to be treated as revenue in nature. He, in this respect, has relied upon the decision of the coordinate bench of this Tribunal in the case of "ACIT vs. Sanghvi Savla Stock Brokers Ltd." (2014) 43 Taxmann.com 323 (Mum Trib.). The Tribunal in the said decision has very elaborately discussed about the nature of the software expenses and has observed that software keep on changing at a very past pace with the growing requirement in the day to day business. Most of the software become obsolete in short span and new and upgraded versions are required fo…

Triveni Engineering & Industries Ltd., Noida vs. ACIT, New Delhi

ITA 1959/DEL/2016[2005-06]Status: DisposedITAT Delhi06 Aug 2020AY 2005-06

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

Section 115JSection 143(1)Section 143(2)Section 14A

…vices v. ACIT: 73 ITD 304 (Jaipur Trib.) " ITC Classic Finance Ltd v. DCIT: 112 Taxman 155 (Kol Trib.) " ACIT v. SRA Systesm Ltd.: 153 ITD 338 (Chennai Trib.) " Nimbus Communication Ltd. v. Addl. CIT 149 ITD 508 (Mum. Trib.) " Sanghvi Savla Stock Brokers Ltd: 152 ITD 820 (Mum Trib.) In view of the above, the Ld. AR submitted that expenditure incurred by the assessee towards implementation of ERP system in the business, in the present modern era of fast changing technology, cannot be said to result in acquisition of any capital asset nor can be said to have resulted in any benefit of enduring nature, to be regard…

Triveni Engineering & Industries Ltd., Noida vs. ACIT, New Delhi

ITA 1958/DEL/2016[2004-05]Status: DisposedITAT Delhi06 Aug 2020AY 2004-05

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

Section 115JSection 143(1)Section 143(2)Section 14A

…vices v. ACIT: 73 ITD 304 (Jaipur Trib.) " ITC Classic Finance Ltd v. DCIT: 112 Taxman 155 (Kol Trib.) " ACIT v. SRA Systesm Ltd.: 153 ITD 338 (Chennai Trib.) " Nimbus Communication Ltd. v. Addl. CIT 149 ITD 508 (Mum. Trib.) " Sanghvi Savla Stock Brokers Ltd: 152 ITD 820 (Mum Trib.) In view of the above, the Ld. AR submitted that expenditure incurred by the assessee towards implementation of ERP system in the business, in the present modern era of fast changing technology, cannot be said to result in acquisition of any capital asset nor can be said to have resulted in any benefit of enduring nature, to be regard…

Triveni Engineering & Industries Ltd., Noida vs. ACIT, New Delhi

ITA 1957/DEL/2016[2003-04]Status: DisposedITAT Delhi06 Aug 2020AY 2003-04

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

Section 115JSection 143(1)Section 143(2)Section 14A

…vices v. ACIT: 73 ITD 304 (Jaipur Trib.) " ITC Classic Finance Ltd v. DCIT: 112 Taxman 155 (Kol Trib.) " ACIT v. SRA Systesm Ltd.: 153 ITD 338 (Chennai Trib.) " Nimbus Communication Ltd. v. Addl. CIT 149 ITD 508 (Mum. Trib.) " Sanghvi Savla Stock Brokers Ltd: 152 ITD 820 (Mum Trib.) In view of the above, the Ld. AR submitted that expenditure incurred by the assessee towards implementation of ERP system in the business, in the present modern era of fast changing technology, cannot be said to result in acquisition of any capital asset nor can be said to have resulted in any benefit of enduring nature, to be regard…

Triveni Engineering & Industries Ltd., Noida vs. ACIT, New Delhi

ITA 1956/DEL/2016[2002-03]Status: DisposedITAT Delhi06 Aug 2020AY 2002-03

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

Section 115JSection 143(1)Section 143(2)Section 14A

…vices v. ACIT: 73 ITD 304 (Jaipur Trib.) " ITC Classic Finance Ltd v. DCIT: 112 Taxman 155 (Kol Trib.) " ACIT v. SRA Systesm Ltd.: 153 ITD 338 (Chennai Trib.) " Nimbus Communication Ltd. v. Addl. CIT 149 ITD 508 (Mum. Trib.) " Sanghvi Savla Stock Brokers Ltd: 152 ITD 820 (Mum Trib.) In view of the above, the Ld. AR submitted that expenditure incurred by the assessee towards implementation of ERP system in the business, in the present modern era of fast changing technology, cannot be said to result in acquisition of any capital asset nor can be said to have resulted in any benefit of enduring nature, to be regard…

Triveni Engineering & Industries Ltd., Noida vs. Addl. CIT, New Delhi

ITA 1955/DEL/2016[2001-02]Status: DisposedITAT Delhi06 Aug 2020AY 2001-02

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

Section 115JSection 143(1)Section 143(2)Section 14A

…vices v. ACIT: 73 ITD 304 (Jaipur Trib.) " ITC Classic Finance Ltd v. DCIT: 112 Taxman 155 (Kol Trib.) " ACIT v. SRA Systesm Ltd.: 153 ITD 338 (Chennai Trib.) " Nimbus Communication Ltd. v. Addl. CIT 149 ITD 508 (Mum. Trib.) " Sanghvi Savla Stock Brokers Ltd: 152 ITD 820 (Mum Trib.) In view of the above, the Ld. AR submitted that expenditure incurred by the assessee towards implementation of ERP system in the business, in the present modern era of fast changing technology, cannot be said to result in acquisition of any capital asset nor can be said to have resulted in any benefit of enduring nature, to be regard…

ACIT 1(1), Mumbai vs. Forbes & Co.Ltd, Mumbai

In the result, appeal of the assessee is partly allowed and the appeal of

ITA 5536/MUM/2011[2007-08]Status: DisposedITAT Mumbai25 Jul 2019AY 2007-08

Bench: Shri G S Pannu, Vice-And Shri Pawan Singh

For Appellant: Shri Girish Dave (AR)For Respondent: Shri S C Tiwari (CIT-DR)
Section 143(3)Section 14ASection 3Section 37(1)Section 40

…IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH “F”, MUMBAI BEFORE SHRI G S PANNU, VICE-PRESIDENTAND SHRI PAWAN SINGH, JUDICIAL MEMBER ITA No. 5536/Mum/2011 Assessment Year: 2007-08 ACIT 1(1), M/s. Forbes & Co. Ltd., Mumbai. Forbes Building, Vs. Charnjit Singh Rai Marg, Fort, Mumbai 400 001. PAN: AAACF1765A (Appellant) (Respondent) ITA No. 5540/Mum/2011 Assessment Year: 2007-08 M/s. Forbes & Co. Ltd., Dy. CIT OSD, Fort, Mumbai 400 001. Mumbai. Vs. PAN: AAACF1765A (Appellant) (Respondent) Appellant By : Shri Girish Dave (AR) Respondent By : Shri S C Tiwari (CIT-DR) Date of Hearing : 01.07.2019 Date of Pronouncemen…

Hdfc Securities Ltd, Mumbai vs. DCIT 4(1), Mumbai

In the result, appeal of the assessee is allowed in terms indicated hereinabove whereas appeal of the Revenue is dismissed

ITA 738/MUM/2016[2011-12]Status: DisposedITAT Mumbai16 Apr 2018AY 2011-12

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm M/S. Hdfc Securities Ltd., Vs. Dcit – 4(1) Office Floor 8 Mumbai I-Think Techno Campus Alpha Building, B Kanjurmarg (E) Mumbai – 400 042 Pan/Gir No.Aaach8215R Appellant) Respondent) .. Dcit – 4(1) (1) Vs. M/S. Hdfc Securities Ltd., Mumbai Office Floor 8 I-Think Techno Campus Alpha Building, B Kanjurmarg (E) Mumbai – 400 042 Pan/Gir No. Aaach8215R Appellant) Respondent) .. Assessee By Ms. Krupa R. Gandhi / Shri Vidhi Doshi Revenue By Shri Rajat Mittal

Section 133ASection 143(3)Section 194JSection 40

…(Bom.)  Amway India Enterprises v. Dy. CIT (111 ITD 112 (Del Trib) (SB) affirmed in CIT v. Amway India Enterprises (346 ITR 341 ) (Del HC)  CIT v, N. J. Invest ((P.) Ltd. (215 Taxnmn 78)(Guj) HDFC Securities Ltd.,  ACIT v. Sanghvi Savla Stock Brokers Ltd.(152 ITD 820) (Mum.)  ACIT v. M/s. Maersk India Pvt. Ltd (ITA No.3072/Mum/2013)  Clariant Chemicals (I) Ltd. v. Addnl CIT (152 ITD 191) (Mum)  DCIT v. Eicher Motors Ltd, 67 SOT 306 (Del T)  Eimco Elecon (India) Ltd. v. ACIT 58 SOT 14 (Ahm) 12. In view of the above discussion, we do not find any merit for the disallowance of net enhancement and customizati…

Integrated Technologies Solutions P.Latd, Mumbai vs. Asst CIT Cir 6(1), Mumbai

ITA 3803/MUM/2012[2005-06]Status: DisposedITAT Mumbai12 Feb 2016AY 2005-06

Bench: Shri Sanjay Garg & Shri Ashwani Tanejaassessment Year: 2005-06 Dcit, Cir. 6(1), M/S. Integrated Technology R.No.506, 5Th Floor, Solutions P. Ltd., Nirlon House, 3Rd Floor, Aayakar Bhavan, Vs. M.K. Road, Dr. Annie Besant Road, Mumbai - 400020 Worli, Mumbai – 400 025 Pan: Aaaci 1867B (Appellant) (Respondent) Assessment Year: 2005-06 M/S. Integrated Technology Assistant Commissioner Of Solutions P. Ltd., Income Tax, Nirlon House, 3Rd Floor, Circle 6(1), Vs. Dr. A.B. Road, Mumbai Worli, Mumbai – 400 025 Pan: Aaaci 1867B (Appellant) (Respondent)

For Appellant: Shri Haresh Buch, A.R. & Ms. Monika Agarwal, A.RFor Respondent: Shri B. Yadagiri, D.R
Section 68

…to time and not having long term enduring benefit were required to be treated as revenue in nature. He, in this respect, has relied upon the decision of the co- ordinate bench of this Tribunal in the case of “ACIT vs. Sanghvi Savla Stock Brokers Ltd.” (2014) 43 Taxmann.com 323 (Mum-Trib.). The Tribunal in the said decision has very elaborately discussed about the nature of the software expenses and has observed that software keep on changing at a very past pace with the growing requirement in the day to day business. Most of the software become obsolete in short span and new and upgraded versions are required fo…

ACIT 6(1), Mumbai vs. Integrated Technology Solutions P.Ltd, Mumbai

ITA 3325/MUM/2012[2005-06]Status: DisposedITAT Mumbai12 Feb 2016AY 2005-06

Bench: Shri Sanjay Garg & Shri Ashwani Tanejaassessment Year: 2005-06 Dcit, Cir. 6(1), M/S. Integrated Technology R.No.506, 5Th Floor, Solutions P. Ltd., Nirlon House, 3Rd Floor, Aayakar Bhavan, Vs. M.K. Road, Dr. Annie Besant Road, Mumbai - 400020 Worli, Mumbai – 400 025 Pan: Aaaci 1867B (Appellant) (Respondent) Assessment Year: 2005-06 M/S. Integrated Technology Assistant Commissioner Of Solutions P. Ltd., Income Tax, Nirlon House, 3Rd Floor, Circle 6(1), Vs. Dr. A.B. Road, Mumbai Worli, Mumbai – 400 025 Pan: Aaaci 1867B (Appellant) (Respondent)

For Appellant: Shri Haresh Buch, A.R. & Ms. Monika Agarwal, A.RFor Respondent: Shri B. Yadagiri, D.R
Section 68

…to time and not having long term enduring benefit were required to be treated as revenue in nature. He, in this respect, has relied upon the decision of the co- ordinate bench of this Tribunal in the case of “ACIT vs. Sanghvi Savla Stock Brokers Ltd.” (2014) 43 Taxmann.com 323 (Mum-Trib.). The Tribunal in the said decision has very elaborately discussed about the nature of the software expenses and has observed that software keep on changing at a very past pace with the growing requirement in the day to day business. Most of the software become obsolete in short span and new and upgraded versions are required fo…

ACIT v. Sanghvi Savla Stock Brokers Ltd. (152 ITD 820) — Cited in 12 Judgments | BharatTax