Alembic Chemical Works Co. Ltd. v. CIT

177 ITR 377Supreme Court of India1989#288 most cited

What is Alembic Chemical Works Co. Ltd. v. CIT authority for?

Expenditure that provides a commercial advantage of an enduring nature may still be classified as revenue expenditure if its purpose is to facilitate existing trading operations, improve business efficiency, or upgrade existing products, depending on the specific context and objective.

272

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2008 to 2026.

Also referred to as

Alembic Chemical Works Co. Ltd. v. CIT · Section 37(1) · revenue expenditure · capital expenditure · enduring benefit test · commercial advantage · upgrading existing products · business efficiency · existing business · product improvement

Also reported as

43 Taxmann 312

Sections most often in play

Section 143(3)Section 37(1)Section 250Section 32Section 35(1)(iv)Section 35(2AB)Section 234BSection 35D

Issues it is cited on

test of enduring benefitenduring benefitsection 35(2ab)section 40a(2)(b)revenue expenditurecapital expendituresection 35section 32fair market valuesection 40(a)section 40aassociated enterprise

Judgments citing Alembic Chemical Works Co. Ltd. v. CIT

VIMALA JAYANTILAL PUROHIT,MUMBAI vs. INCOME TAX OFFICER CIRCLE 17(1), MUMBAI

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

ITA 7063/MUM/2025[2023-24]Status: DisposedITAT Mumbai27 Feb 2026AY 2023-24

Bench: Shri Sandeep Gosain & Shri Bijayananda Pruseth

Section 143(3)Section 250Section 32

…of parts of machinery which do not amount to bringing into existence a new asset or enhancing the life of the existing machinery substantially would be treated as revenue expenditure and not capital expenditure. Alembic Chemical Works Co. Ltd. v. CIT [(1989) 177 ITR 377 (SC)] Expenditure incurred to preserve and maintain existing assets should be treated as revenue expenditure. CIT v. Southern Switchgear Ltd. [(1984) 148 ITR 272 (Mad HC)] Where expenditure was incurred on replacing old parts with new ones without increasing the value or efficiency, it was treated as revenue in nature. 4. Excess Depreciation on R…

MAHINDRA AND MAHINDRA LIMITED (AS SUCESSOR TO MAHINDRA TWO WHEELERS LIMITED WHICH IN TURN IS SUCESSOR TO MAHINDRA TRUCKS AND BUSES LIMITED),MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 2(2)(1), MUMBAI

ITA 4964/MUM/2025[2018-19]Status: DisposedITAT Mumbai25 Sept 2025AY 2018-19
Section 115JSection 143(1)Section 143(3)Section 234ASection 234CSection 250Section 254(1)Section 270ASection 28Section 37

…d. v. CIT Citation: (1980) 124 ITR 1 (SC) Ratio: "Enduring benefit" test not conclusive; if expenditure facilitates trading operations or business efficiency, it is revenue even if benefit may endure. 2. Alembic Chemical Works Co. Ltd. v. CIT Citation: (1989) 177 ITR 377 (SC) Ratio: Commercial advantage of enduring nature may yet be revenue in character, depending on context and purpose of expenditure. 3. CIT v. Amway India Enterprises Citation: (2012) 346 ITR 341 (Delhi HC) Ratio: Expenditure on distributor incentives, market development, brand promotion and visibility held to be revenue in nature. 4. CIT v. Sal…

AGS TRANSACT TECHNOLOGIES LIMITED,MUMBAI vs. DCIT CIRCLE 6(1)(1), AAYAKAR BHAVAN MUMBAI

ITA 4653/MUM/2024[2020-2021]Status: DisposedITAT Mumbai17 Feb 2025AY 2020-2021

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary () Assessment Year: 2020-21 Ags Transact Technologies Dcit Circle 6(1)(1), Ltd., Aayakar Bhavan, Vs. 601-602, Trade World, B Wing Mumbai-400020. S.B. Marg, Lower Parel, Mumbai-400013. Pan No. Aaeca 0901 H Appellant Respondent

For Appellant: Mr. Dalpat ShahFor Respondent: 04/12/2024

…Tax , 124 ITR 1; Commissioner of Income Tax. Bombay Bombay-II v. Associated Cements Co. Ltd. . Associated Cements Co. Ltd., 172 ITR ITR 257 257 and and Alembic Alembic Chemical Chemical works Co. works Co. Ltd. Ltd. v. v. Commissioner of Income Tax. Gujarat, 177 ITR 377. Commissioner of Income Tax . Gujarat, 177 ITR 377. The learned counsel has also invited our attention to the decisions learned counsel has also invited our attention to the decisions learned counsel has also invited our attention to the decisions of the High Courts of Andhra Pradesh, Kerala and Madras e High Courts of Andhra Pradesh, Kerala and…

DCIT CIRCLE 8 , PUNE vs. MAHLE ANAND THERMAL SYSTEMS PVT. LTD, PUNE

In the result, the appeal and the CO filed by the assessee are partly allowed and the appeals filed by the Revenue are dismissed

ITA 96/PUN/2024[2015-16]Status: DisposedITAT Pune22 Jan 2025AY 2015-16

Bench: Shri R. K. Panda & Ms. Astha Chandraassessment Year : 2014-15

For Appellant: Shri R D OnkarFor Respondent: Shri Amol Khairnar CIT-DR
Section 143(3)Section 35Section 35(1)(iv)

…ing of automotive components and enabling the management to conduct the business operations more efficiently and productively. The Hon'ble Supreme Court in the case of (i) Empire Jute Co. Ltd. v. CIT, 124 ITR 1 and (ii) Alembic Chemical Works Co. Ltd. v. CIT, 177 ITR 377 (SC) held that expenditure incurred on the existing business incurred in connection with the existing business. Updating existing products should be allowed as revenue expenditure. Keeping in view the principles laid down by the Hon'ble Karnataka High Court in the case of CIT vs. Tejas Networks India (P.) Ltd., 52 taxmann.com 513 (Kar.), the Hon'…

MAHLE ANAND THERMAL SYSTEMS PRIVATE LIMITED,PUNE vs. DY COMMISSIONER OF INCOME TAX, PUNE

In the result, the appeal and the CO filed by the assessee are partly allowed and the appeals filed by the Revenue are dismissed

ITA 333/PUN/2024[2014-15]Status: DisposedITAT Pune22 Jan 2025AY 2014-15

Bench: Shri R. K. Panda & Ms. Astha Chandraassessment Year : 2014-15

For Appellant: Shri R D OnkarFor Respondent: Shri Amol Khairnar CIT-DR
Section 143(3)Section 35Section 35(1)(iv)

…ing of automotive components and enabling the management to conduct the business operations more efficiently and productively. The Hon'ble Supreme Court in the case of (i) Empire Jute Co. Ltd. v. CIT, 124 ITR 1 and (ii) Alembic Chemical Works Co. Ltd. v. CIT, 177 ITR 377 (SC) held that expenditure incurred on the existing business incurred in connection with the existing business. Updating existing products should be allowed as revenue expenditure. Keeping in view the principles laid down by the Hon'ble Karnataka High Court in the case of CIT vs. Tejas Networks India (P.) Ltd., 52 taxmann.com 513 (Kar.), the Hon'…

DCIT, CIRCLE-8, PUNE vs. MAHLE ANAND THERMAL SYSTEMS PVT. LTD., PUNE

ITA 228/PUN/2024[2017-18]Status: DisposedITAT Pune22 Jan 2025AY 2017-18

Bench: Shri R. K. Panda & Ms. Astha Chandra

For Appellant: Shri R D OnkarFor Respondent: Shri Amol Khairnar CIT-DR
Section 143(3)Section 35Section 35(1)(iv)

…ing of automotive components and enabling the management to conduct the business operations more efficiently and productively. The Hon'ble Supreme Court in the case of (i) Empire Jute Co. Ltd. v. CIT, 124 ITR 1 and (ii) Alembic Chemical Works Co. Ltd. v. CIT, 177 ITR 377 (SC) held that expenditure incurred on the existing business incurred in connection with the existing business. Updating existing products should be allowed as revenue expenditure. Keeping in view the principles laid down by the Hon'ble Karnataka High Court in the case of CIT vs. Tejas Networks India (P.) Ltd., 52 taxmann.com 513 (Kar.), the Hon'…

DCIT,CIRCLE-8 , PUNE vs. MAHALE ANAND THERMAL SYSTEMS PVT. LTD. , PUNE

In the result, the appeal and the CO filed by the assessee are partly allowed and the appeals filed by the Revenue are dismissed

ITA 127/PUN/2024[2014-15]Status: DisposedITAT Pune22 Jan 2025AY 2014-15

Bench: Shri R. K. Panda & Ms. Astha Chandraassessment Year : 2014-15

For Appellant: Shri R D OnkarFor Respondent: Shri Amol Khairnar CIT-DR
Section 143(3)Section 35Section 35(1)(iv)

…ing of automotive components and enabling the management to conduct the business operations more efficiently and productively. The Hon'ble Supreme Court in the case of (i) Empire Jute Co. Ltd. v. CIT, 124 ITR 1 and (ii) Alembic Chemical Works Co. Ltd. v. CIT, 177 ITR 377 (SC) held that expenditure incurred on the existing business incurred in connection with the existing business. Updating existing products should be allowed as revenue expenditure. Keeping in view the principles laid down by the Hon'ble Karnataka High Court in the case of CIT vs. Tejas Networks India (P.) Ltd., 52 taxmann.com 513 (Kar.), the Hon'…

DCIT CIR - 3(1), MUMBAI vs. M/S. BAJAJ AUTO LTD., MUMBAI

In the result, the appeal of the Revenue is dismissed

ITA 574/MUM/2007[2001-2002]Status: DisposedITAT Mumbai06 Sept 2024AY 2001-2002

Bench: Us, Revenue Has Raised The Following Grounds:-

Section 271(1)(c)Section 80

…e purpose of the expenditure is to achieve efficiency in operations. Hence, the said expenditure of Rs. 17,70 92,101/- has been claimed an allowable deduction relying on the decision of the Supreme Court in the case of Alembic Chemical Works Co. Ltd. V/s CIT (177 ITR 377)". 5. However, in the quantum proceedings, the ld. AO held that once expenditure is being incurred for technical Know-how, the same amounts to capital expenditure however, he allowed depreciation on the said amount. It has been submitted that from the stage of the Tribunal, the claim of the assessee for the amount incurred on obtaining process k…

SAMKEET ARYA HOMES LLP,AHMEDABAD vs. THE INCOME TAX OFFICER, WARD-3(3)(5), AHMEDABAD

In the result, appeal filed by the assessee is allowed

ITA 249/AHD/2024[2018-19]Status: DisposedITAT Ahmedabad16 Jul 2024AY 2018-19

Bench: Ms. Suchitra Kamble & Shri Makarand Vasant Mahadeokarassessment Year: 2018-10

Section 133(6)Section 143(2)Section 37

…ITA No.249/Ahd/2024 Assessment Year: 2018-19 Page 1 of 7 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH, AHMEDABAD BEFORE Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI MAKARAND VASANT MAHADEOKAR, ACCOUNTANT MEMBER Assessment Year: 2018-10 Samkeet Arya Homes LLP, The Income Tax Officer, B-604, Shapath IV, Ward – 3(3)(5), Opp. Karnavati Club, Ahmedabad. S.G. Highway, Vs. Ahmedabad – 380 015. [PAN – ACRFS 2181 D] (Appellant) (Respondent) Assessee by Ms. Shrunjal Shah, AR Revenue by Shri N.J. Vyas, Sr. DR Date of Hearing 16.05.2024 Date of Pronouncement 16.07.2024 O R D E R PER SUCHITRA KAMBLE: This a…

BHARAT FLOORING AND TILES (MUMBAI) PVT LTD,MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME-TAX 2(1)(1), MUMBAI

ITA 4200/MUM/2023[2017-2018]Status: DisposedITAT Mumbai15 Jul 2024AY 2017-2018

Bench: SHRI B.R. BASKARAN, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Mehli M. GolvalaFor Respondent: Shri Ashok Kumar Ambastha
Section 143(3)Section 37

…, were in the nature of revenue expenses incurred by the Appellant on recurring basis for maintaining operational efficiencies. Our view draws support from the judgment of the Hon’ble Delhi High Court in the case of Indo Rama Synthetics India Limited Vs. CIT: 177 ITR 377 (SC) cited on behalf of the Appellant during the course of hearing. Accordingly, we overturn the decision of Assessing Officer and CIT(A) on this issue and direct the Assessing Officer to allow deduction for business consultancy charges of INR 20,68,500/- and travel/other expenses of INR 4,59,871/- as claimed by the Appellant under Section 37(1)…

DCIT, CHENNAI vs. M/S. MALAR PUBLICATIONS LTD., CHENNAI

In the result, appeal filed by the revenue is dismissed

ITA 2915/CHNY/2016[2009-10]Status: DisposedITAT Chennai31 May 2024AY 2009-10

Bench: Shri Aby T Varkey, Hon’Ble & Shri S. R. Raghunatha, Hon’Bleआयकर अपील सं./Ita No.: 2915/Chny/2016 िनधा"रण वष" / Assessment Year: 2009-10 M/S. Malar Publications Limited, Deputy Commissioner Of V. No. 86, Periyar Evr High Road, Income-Tax, Vepery, Chennai – 600 007. Corporate Circle -4(1), [Pan: Aaacm-2573-P] Chennai. (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. D. Hema Bhupal, Jcit अपीलाथ" क" ओर से/Appellant By ""यथ" क" ओर से/Respondent By : Shri. S. Sridhar, Advocate सुनवाई क" तारीख/Date Of Hearing : 07.05.2024 घोषणा क" तारीख/Date Of Pronouncement : 31.05.2024 आदेश /O R D E R

For Respondent: Shri. S. Sridhar, Advocate
Section 143(3)

…d.DR and stated that these decisions are not applicable to the facts of this case. On the contrary, the following judgments supports the case of the assessee: :-7-: ITA. No: 2915/Chny/2016 (a) Hon’ble Supreme Court in the case of Alembic Chemical Co. [1989] 177 ITR 377 (SC) (b) CIT vs J.K. Synthetics [2009] 309 ITR 371 (Del) (c) CIT vs Southern Roadways Ltd. [2008] 24(I) ITCL 118 (Mad-HC) The Ld. Counsel for the assessee, prayed for upholding the order of the ld. CIT(A). 8. We have heard both the parties, perused materials available on record and gone through orders of the authorities below. It is admitted fa…

TATA INTERNATIONAL LTD,MUMBAI vs. DCIT RG 14(3)1), MUMBAI

In the result, the ground no

ITA 1195/MUM/2015[2010-11]Status: DisposedITAT Mumbai28 May 2024AY 2010-11

Bench: Shri Anikesh Banerjee & Miss Padmavathy S.

For Appellant: Shri Nitesh Joshi a/w Ninad PatadeFor Respondent: Ms. Dhivya Ruth SR.DR
Section 143(3)Section 144C(5)Section 92CSection 92C(2)

…RP Since the assessee company has not contested this ground of appeal before the DRP-II, the addition made by the AO remains intact.” 20. The Ld.AR respectfully relied on the order of Hon‟ble Apex Court in the case of Alembic Chemical Works Co. Ltd vs. CIT, 177 ITR 377 (SC) “14. It appears to us that the answer to the questions referred should be on the basis that the financial outlay under the agreement was for the better conduct and improvement of the existing business and should, therefore, be held to be a revenue expenditure. Reference may also be made to the observations of this Court in CIT v. Ciba of Ind…

DCIT RG. - 3(1), MUMBAI vs. M/S. BAJAJ AUTO LTD., MUMBAI

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

ITA 4372/MUM/2005[2001-2002]Status: DisposedITAT Mumbai23 Feb 2024AY 2001-2002

Bench: Shri Aby T Varkey, Hon’Ble & Shri S. Rifaur Rahman, Hon'Blem/S. Bajaj Auto Limited V. Dcit – Range – 3(1) Bajaj Bhavan, 226-Nariman Point 6Th Floor, Aayakar Bhavan Mumbai – 400021 M.K. Road, Mumbai - 400020 Pan : Aaacb3370K (Appellant) (Respondent) Dcit – Range – 3(1) V. M/S. Bajaj Auto Limited Room No. 623, 6Th Floor Bajaj Bhavan, 226-Nariman Point Mumbai – 400021 Aayakar Bhavan M.K. Road, Mumbai - 400020 Pan : Aaacb3370K (Appellant) (Respondent) Assessee Represented By : Ms. Vasanti Patel& Shri Kirit Kamdar Department Represented By : Shri Ankush Kapoor

Section 143(4)(b)Section 234Section 35Section 35DSection 37(1)Section 40

…nd 1/6thof the same has been written off during the year. In the return of income, the entire amount of ₹.17,70,92,101/- was claimed as a deduction by relying on the decision of the Hon’ble Supreme Court in the case of Alembic Chemicals Works Co. Ltd. v. CIT [177 ITR 377]. In this regard, assessee submitted that the assembly line for two wheeler models are always dedicated lines i.e. single model lines. However, the assessee has developed many more models in view of increasing competition and it would be too expensive to have dedicated lines for each model, a new line for motor cycles under the concept of multi m…

M/S. BAJAJ AUTO LTD.,MUMBAI vs. DCIT RG. - 3(1), MUMBAI

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

ITA 4236/MUM/2005[2001-2002]Status: DisposedITAT Mumbai23 Feb 2024AY 2001-2002

Bench: Shri Aby T Varkey, Hon’Ble & Shri S. Rifaur Rahman, Hon'Blem/S. Bajaj Auto Limited V. Dcit – Range – 3(1) Bajaj Bhavan, 226-Nariman Point 6Th Floor, Aayakar Bhavan Mumbai – 400021 M.K. Road, Mumbai - 400020 Pan : Aaacb3370K (Appellant) (Respondent) Dcit – Range – 3(1) V. M/S. Bajaj Auto Limited Room No. 623, 6Th Floor Bajaj Bhavan, 226-Nariman Point Mumbai – 400021 Aayakar Bhavan M.K. Road, Mumbai - 400020 Pan : Aaacb3370K (Appellant) (Respondent) Assessee Represented By : Ms. Vasanti Patel& Shri Kirit Kamdar Department Represented By : Shri Ankush Kapoor

Section 143(4)(b)Section 234Section 35Section 35DSection 37(1)Section 40

…nd 1/6thof the same has been written off during the year. In the return of income, the entire amount of ₹.17,70,92,101/- was claimed as a deduction by relying on the decision of the Hon’ble Supreme Court in the case of Alembic Chemicals Works Co. Ltd. v. CIT [177 ITR 377]. In this regard, assessee submitted that the assembly line for two wheeler models are always dedicated lines i.e. single model lines. However, the assessee has developed many more models in view of increasing competition and it would be too expensive to have dedicated lines for each model, a new line for motor cycles under the concept of multi m…

ACIT CIRCLE-19(1), NEW DELHI vs. OPPO MOBILES INDIA (P) LTD, NEW DELHI

In the result, appeal of the Revenue is dismissed

ITA 3789/DEL/2019[2015-16]Status: DisposedITAT Delhi23 Jan 2024AY 2015-16

Bench: Shri N.K. Billaiya & Ms. Astha Chandraasstt. Year 2015-16

For Appellant: Shri Ravi Sharma, AdvFor Respondent: Shri Subhra Jyoti Chakraborty, CIT(DR)
Section 143(3)Section 37(1)

…g benefit. The disallowance was made on ad-hoc basis without bringing any evidence and material on record. 5.6 The appellant relied on the apex court decisions in the case of Empire Jute Co. Ltd. [1980] 124 ITR 1(SC) and Alembic Chemical Works Co. Ltd. [1989] 177 ITR 377(SC) 5.7 The appellant submitted that the Issue raised by the AO that Expenditure gives an enduring benefit to the Assessee. In the case of Alembic Chemical Works Co. Ltd., [1980] 177 ITR 377(SC). The Apex court held that: "There is also no single definite criterion which by itself, is determinative whether a particular outlay is capital or revenu…

ADDL CIT RG 7(1), MUMBAI vs. PIRAMAL ENTERPRISES LTD (FORMERLY KNWON AS PIRAMAL HEALTHCARE LTD) (AS ULTIMATE SUCCESSOR TO NICHOLAS PIRAMAL INDIA LTD), MUMBAI

ITA 5091/MUM/2010[2005-06]Status: DisposedITAT Mumbai11 Jan 2024AY 2005-06

Bench: Shri Kuldip Singh & Shri S Rifaur Rahmanassessment Year: 2005-06 M/S. Piramal Enterprises Dy. Commissioner Of Limited (Formerly Known Income Tax, As Piramal Healthcare Range-8(2)(1), Limited) (Earlier Known As Mumbai. Nicholas Piramal India Ltd.), Vs. Piramal Tower, Agastya Corporate Park, Lbs Marg, Kamani Junction, Kurla (West), Mumbai – 400 070 Pan: Aaacn4538P (Appellant) (Respondent) Assessment Year: 2005-06 Dy. Commissioner Of M/S. Piramal Enterprises Income Tax, Limited (Formerly Known Circle-8(2)(1), As Piramal Healthcare [Erstwhile Dcit Circle- Ltd.) (As Ultimate 7(1)], Successor To Nicholas Vs. Mumbai. Piramal India Ltd.), Piramal Tower, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400 013 Pan: Aaacn4538P (Appellant) (Respondent)

For Appellant: Shri Priyank Gala, A.RFor Respondent: Shri P.D. Chogule, (Addl. CIT) Sr. A.R
Section 28Section 40Section 45

…IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “C”, MUMBAI BEFORE SHRI KULDIP SINGH, JUDICIAL MEMBER AND SHRI S RIFAUR RAHMAN, ACCOUNTANT MEMBER Assessment Year: 2005-06 M/s. Piramal Enterprises Dy. Commissioner of Limited (Formerly known Income Tax, as Piramal Healthcare Range-8(2)(1), Limited) (Earlier known as Mumbai. Nicholas Piramal India Ltd.), Vs. Piramal Tower, Agastya Corporate Park, LBS Marg, Kamani Junction, Kurla (West), Mumbai – 400 070 PAN: AAACN4538P (Appellant) (Respondent) Assessment Year: 2005-06 Dy. Commissioner of M/s. Piramal Enterprises Income Tax, Limited (Formerly known Circle-8(2)(1)…

PIRAMAL HEALTHCARE LTD ( EARLIER KNOWNAS NICHOLAS PIRAMAL INDIA LTD),MUMBAI vs. ADDL CIT 7(1), MUMBAI

ITA 3706/MUM/2010[2005-06]Status: DisposedITAT Mumbai11 Jan 2024AY 2005-06

Bench: Shri Kuldip Singh & Shri S Rifaur Rahmanassessment Year: 2005-06 M/S. Piramal Enterprises Dy. Commissioner Of Limited (Formerly Known Income Tax, As Piramal Healthcare Range-8(2)(1), Limited) (Earlier Known As Mumbai. Nicholas Piramal India Ltd.), Vs. Piramal Tower, Agastya Corporate Park, Lbs Marg, Kamani Junction, Kurla (West), Mumbai – 400 070 Pan: Aaacn4538P (Appellant) (Respondent) Assessment Year: 2005-06 Dy. Commissioner Of M/S. Piramal Enterprises Income Tax, Limited (Formerly Known Circle-8(2)(1), As Piramal Healthcare [Erstwhile Dcit Circle- Ltd.) (As Ultimate 7(1)], Successor To Nicholas Vs. Mumbai. Piramal India Ltd.), Piramal Tower, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400 013 Pan: Aaacn4538P (Appellant) (Respondent)

For Appellant: Shri Priyank Gala, A.RFor Respondent: Shri P.D. Chogule, (Addl. CIT) Sr. A.R
Section 28Section 40Section 45

…IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “C”, MUMBAI BEFORE SHRI KULDIP SINGH, JUDICIAL MEMBER AND SHRI S RIFAUR RAHMAN, ACCOUNTANT MEMBER Assessment Year: 2005-06 M/s. Piramal Enterprises Dy. Commissioner of Limited (Formerly known Income Tax, as Piramal Healthcare Range-8(2)(1), Limited) (Earlier known as Mumbai. Nicholas Piramal India Ltd.), Vs. Piramal Tower, Agastya Corporate Park, LBS Marg, Kamani Junction, Kurla (West), Mumbai – 400 070 PAN: AAACN4538P (Appellant) (Respondent) Assessment Year: 2005-06 Dy. Commissioner of M/s. Piramal Enterprises Income Tax, Limited (Formerly known Circle-8(2)(1)…

FRONTIER TEXTILES (P) LTD. ,HOWRAH vs. DCIT,CIR-1(1), KOLKATA, KOLKATA

In the result, appeal of the assessee is partly allowed

ITA 710/KOL/2023[2014-15]Status: DisposedITAT Kolkata14 Dec 2023AY 2014-15

Bench: Shri Rajesh Kumar& Shri Sonjoy Sarma]

…ent. Reliance is placed on the following judgments wherein it has been held that research &development expenditure of an existing cannot be treated as Capital expenditure. 1. Empire Jute Co. Ltd. (1980) 124 ITR 1 (SC) 2. Alembic Chemical Works Co. Ltd. (1989) 177 ITR 377 (SC) 3. ACIT V. Medicamen Biotech Ltd. (2006) 99 TTJ 873 (Del) 5.2.2 The submission filed by the appellant has been carefully considered but is not acceptable in the light of Hon’ble Supreme Court jurdgement in the case of Honda Siel Cars India Ltd. vs. CIT in the Civil Appeal No. 4918 of 2017. The case laws relied upon by the appellant are also…

THE PR. COMMISSIONER OF INCOME TAX -7 vs. ST MICROELECTRONICS PVT. LTD.

ITA/715/2023HC Delhi07 Dec 2023

Bench: HON'BLE MR. JUSTICE RAJIV SHAKDHER,HON'BLE MR. JUSTICE GIRISH KATHPALIA

…es. It would in our view be only truer in cases which deal with technology and software application, which do not in any manner supplant the source of income or added to the fixed capital of the assessee. (See Alembic Chemical Works Co. Ltd. vs CIT [1989] 177 ITR 377; CIT vs J.K. Synthetics [2009] 309 ITR 371 at page 412 and CIT Vs. Indian Visit.com (supra)]). xxx xxx xxx 11. Software is nothing but another word for computer programmes, i.e., instructions, that make the hardware work. Software is broadly of two types, i.e., the systems software, which is also known as the operating system which contro…

THE PR. COMMISSIONER OF INCOME TAX -7 vs. ST MICROELECTRONICS PVT. LTD.

ITA - 715 / 2023HC Delhi07 Dec 2023

…es. It would in our view be only truer in cases which deal with technology and software application, which do not in any manner supplant the source of income or added to the fixed capital of the assessee. (See Alembic Chemical Works Co. Ltd. vs CIT [1989] 177 ITR 377; CIT vs J.K. Synthetics [2009] 309 ITR 371 at page 412 and CIT Vs. Indian Visit.com (supra)]). xxx xxx xxx 11. Software is nothing but another word for computer programmes, i.e., instructions, that make the hardware work. Software is broadly of two types, i.e., the systems software, which is also known as the operating system which contro…

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