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.

275

judgments rely on this decision, according to BharatTax’s citation analysis of 367,518 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
Read the full judgment

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

JCIT (OSD) Corporate Circle-1(1), Chennai vs. M/S. Iss Sdb Security Services Pvt Ltd, Chennai

In the result, the appeal filed by the Revenue is dismissed

ITA 610/CHNY/2023[2013-14]Status: DisposedITAT Chennai31 Oct 2023AY 2013-14

Bench: Shri V. Durga Rao & Shri Manjunatha, G.आयकर अपील सं./I.T.A. No.610/Chny/2023 िनधा"रण वष"/Assessment Year: 2013-14 The Joint Commissioner Of Vs. M/S. Iss Db Security Services Pvt. Ltd., 5Th Floor, Bascon Futura Sv, 10/1, Income Tax (Osd), Corporate Circle 1(1), Venkatnarayana Road, Chennai 600 034. Chennai 600 017. [Pan:Aaact3628C] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri Nilay Baran Som, Cit ""थ" की ओर से/Respondent By : Shri Mahir Chitalia, Ca सुनवाई की तारीख/ Date Of Hearing : 17.10.2023 घोषणा की तारीख /Date Of Pronouncement : 31.10.2023 आदेश /O R D E R Per V. Durga Rao: This Appeal Filed By The Revenue Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre [Nfac], Delhi, Dated 11.01.2023 Relevant To The Assessment Year 2013-14. 2. The Appeal Filed By The Revenue Is Delayed By 34 Days In Filing The Appeal, For Which, The Revenue Has Filed An Affidavit For Condonation Of The Delay, To Which; The Ld. Counsel For The Assessee Has Not Raised Any 2

For Appellant: Shri Nilay Baran Som, CITFor Respondent: Shri Mahir Chitalia, CA
Section 143(2)Section 143(3)Section 14A

…upon perusal of factual matrix, concurred with assessee’s submissions and observed that the payment was as license fees only and not price for acquisition of any capital assets. The ratio of decision of Hon’ble Apex Court in Alembic Chemicals Works Co. Ltd. (177 ITR 377) was noted wherein similar expenditure were held to be allowable deduction. Similar was the decision of Hon’ble Delhi High Court in Jubilant Foodwork Pvt. Ltd. (52 Taxmann.com 215) wherein it was held that the franchise fees paid annually at fixed percentage of sales turnover for using trademark would be revenue expenditure. Similar was the decis…

Guala Closures (India) Pvt. Ltd., Panaji vs. The Principal Commissioner of Income Tax, Panaji., Select City

Appeal is dismissed in above terms

ITA 205/PAN/2019[2012-13]Status: DisposedITAT Panaji13 Oct 2023AY 2012-13

Bench: Shri Satbeer Singh Godara & Dr. Dipak Ripote

For Appellant: Shri Ketan VedFor Respondent: Shri P.S. Shivshankar, CIT-DR
Section 143(3)Section 144(3)Section 144CSection 253Section 263Section 4

…IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH : PANAJI (THROUGH VIRTUAL HEARING AT ITAT : PUNE BENCHES : PUNE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND DR. DIPAK RIPOTE, ACCOUNTANT MEMBER ITA.No.205/PAN./2019 Assessment Year 2012-2013 The Principal Guala Closures India Private Commissioner of Income Limited, D-1, Sesa Ghor, 20, vs. Tax, Panaji, Aayakar EDC Complex, Patto, Panaji, Bhavan, Plot No.5, EDC Goa – 403 001 Complex, Patto Plaza, PAN AAACG4447J Panaji, Goa – 403 001. (Appellant) (Respondent) For Assessee : Shri Ketan Ved For Revenue : Shri P.S. Shivshankar, CIT-DR Date of Hearing : 10.1…

ACIT Cir-1, Dhanbad vs. M/S Bharat Cooking Coal Ltd, Dhanbad

In the result, the appeal filed by the Revenue is dismissed

ITA 304/RAN/2017[14-15]Status: DisposedITAT Ranchi18 Aug 2023

Bench: Sri Rajesh Kumar & Sonjoy Sarma

Section 143(3)

…e nature of such expenses specific to the operations carried by the appellant. [5.3.1] Before the discussion on this aspect is made it would be relevant to keep in mind the judgement of the apex court in the case of Alembic Chemicals Works Co Ltd v CIT [1989] 177 ITR 377 (SC). On the issue of the criteria to be used for treating an expense as revenue or capital the apex court held that “There is also no single definite criterion which by itself is determinative whether a particular outlay is capital or revenue. The 'once for all' payment test is also inconclusive. What is relevant is the purpose of the outlay and…

ACIT Cir-1, Dhanbad vs. M/S Bharat Cooking Coal Ltd, Dhanbad

In the result, the appeal filed by the Revenue is dismissed

ITA 303/RAN/2017[13=14]Status: PendingITAT Ranchi18 Aug 2023

Bench: Sri Rajesh Kumar & Sonjoy Sarma

Section 143(3)

…e nature of such expenses specific to the operations carried by the appellant. [5.3.1] Before the discussion on this aspect is made it would be relevant to keep in mind the judgement of the apex court in the case of Alembic Chemicals Works Co Ltd v CIT [1989] 177 ITR 377 (SC). On the issue of the criteria to be used for treating an expense as revenue or capital the apex court held that “There is also no single definite criterion which by itself is determinative whether a particular outlay is capital or revenue. The 'once for all' payment test is also inconclusive. What is relevant is the purpose of the outlay and…

Continental Automotive Components India Private Limited, Bengaluru vs. Deputy Commissioner of Income Tax, Circe-2(1)(1), Bangalore

In the result, the appeal by the assessee is partly allowed for statistical purposes

ITA 390/BANG/2021[2009-10]Status: DisposedITAT Bangalore17 Aug 2023AY 2009-10

Bench: Shri George George K. & Shri Laxmi Prasad Sahu

For Appellant: Shri T. Suryanarayana, AdvocateFor Respondent: Shri Sunil Kumar Singh, CIT-2(DR)(ITAT), Bengaluru
Section 143(3)Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI GEORGE GEORGE K., VICE PRESIDENT AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER IT(TP)A No.390/Bang/2021 Assessment year : 2009-10 Continental Automotive Vs. The Deputy Commissioner Components India Pvt. Ltd., of Income Tax, Plot No.53B, Bommasandra Circle 2(1)(1), Industrial Area, Bengaluru. Hosur Road, Attibele Hobli, Anekal Taluk, Bengaluru – 560 099. PAN: AAKCS 9578C APPELLANT RESPONDENT Appellant by : Shri T. Suryanarayana, Advocate Respondent by : Shri Sunil Kumar Singh, CIT-2(DR)(ITAT), Bengaluru. Date of hearing : 26.07.2023 Date o…

Wipro Limited, Bangalore vs. Assistant Commissioner of Income Tax, Circle-7(1)(1), Bangalore

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 370/BANG/2021[2016-17]Status: DisposedITAT Bangalore14 Jun 2023AY 2016-17

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahu

For Appellant: Shri Sandeep Huilgol, AdvocateFor Respondent: Dr. Manjunath Karkihallli, CIT(DR)(ITAT), Bengaluru
Section 10ASection 143(2)Section 143(3)Section 80G

…lso the efficiency. The effect of technological obsolescence, in the context of allowing cost of certain assets as IT(TP)A No.370/Bang/2021 Page 20 of 110 revenue expenditure, was well explained by Hon’ble Supreme Court in the case of Alembic Chemical works (177 ITR 377) in the following words:- "It would, in our opinion, be unrealistic to ignore the rapid advances in researches in antibiotic medical microbiology and to attribute a degree of endurability and permanence to the technical know- how at any particular stage in this fast changing area of medical science. The state of the art in some of these areas of…

Orchasp Limited, Hyderabad vs. Deputy Commissioner of Income Tax, Circle-1(2), Hyderabad

In the result, the Tax Case Appeals are dismissed and the substantial questions of law are answered against the Revenue

ITA 182/HYD/2022[2011-12]Status: DisposedITAT Hyderabad20 Apr 2023AY 2011-12

Bench: Shri R.K. Panda & Shri K. Narasimha Charyassessment Year: 2011-12 Orchasp Limited Vs. Dy. Cit Hyderabad Circle 1(2) Pan:Aabcc4776F Hyderabad (Appellant) (Respondent) Assessee By: Shri P. Murali Mohan Rao, Ca Revenue By: Shri B. Yadagiri, Dr Date Of Hearing: 13/04/2023 Date Of Pronouncement: 20/04/2023 Order Per R.K. Panda, A.M This Appeal Filed By The Assessee Is Directed Against The Order Dated 23/03/2022 Of The Learned Cit (A)- Nfac, Relating To A.Y. 2011-12. 2. The Grounds Raised By The Assessee Are As Under: “1. On The Facts & In The Circumstances Of The Case The Appellate Order Passed By The Cit(A) Is Erroneous Both On Facts & In Law To The Extent The Order Is Prejudicial To The Interest Of The Appellant. 2. The Cit(A) Ought To Have Appreciated The Fact That The Amount Of Investment Made Is Completely In Wholly Owned Subsidiary Company Which Is Revenue In Nature & Not A Capital Expenditure. 3. The Ld. Cit(A) Ought To Have Accepted The Investments Written Off Of Rs.3,60,72,141/- Since The Said Amount Was Not Received From The Third Party To The Subsidiary & Thus, The Same Amount Was Written Off By The Virtue Of The Circular No. 69 Dt. 27-07-2011 Issued By Rbi.

For Appellant: Shri P. Murali Mohan Rao, CAFor Respondent: Shri B. Yadagiri, DR
Section 143(2)Section 271(1)(c)Section 37Section 37(1)

…ITA 182 of 2022 Orchasp Ltd आयकर अपील"य अ"धकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ ‘ Bench, Hyderabad Before Shri R.K. Panda, Accountant Member AND Shri K. Narasimha Chary, Judicial Member Assessment Year: 2011-12 ORCHASP LIMITED Vs. Dy. CIT Hyderabad Circle 1(2) PAN:AABCC4776F Hyderabad (Appellant) (Respondent) Assessee by: Shri P. Murali Mohan Rao, CA Revenue by: Shri B. Yadagiri, DR Date of hearing: 13/04/2023 Date of pronouncement: 20/04/2023 ORDER Per R.K. Panda, A.M This appeal filed by the assessee is directed against the order dated 23/03/2022 of the learned CIT (A)- NFAC, r…

DCIT(Ltu) - 1, Mumbai vs. Acc Ltd., Mumbai

In the result, appeal filed by assessee is partly allowed and appeal filed by the revenue is dismissed

ITA 3178/MUM/2019[2011-12]Status: DisposedITAT Mumbai28 Feb 2023AY 2011-12

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Ble

Section 14Section 143(3)Section 14A

…f CIT v. South India Corporation Ltd. [2020] 121 taxmann.com 84 has held as under: 5. The learned counsel appearing for the respondent places reliance on the judgment of the Honourable Supreme Court Alembic Chemical Works Co. Ltd. v. CIT [1989] 43 Taxman 312/177 ITR 377 to support the contention that the assessee was engaged in related activities and had merely attempted an expansion of its activities, which resulted in the expenditure. The venture though not new, did not take off since the Government of India abandoned the project. It is also specifically argued that no question of law arises, since the issue o…

Acc Ltd., Mumbai vs. Addl CIT(Ltu), Mumbai

In the result, appeal filed by assessee is partly allowed and appeal filed by the revenue is dismissed

ITA 3139/MUM/2019[2011-12]Status: DisposedITAT Mumbai28 Feb 2023AY 2011-12

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Ble

Section 14Section 143(3)Section 14A

…f CIT v. South India Corporation Ltd. [2020] 121 taxmann.com 84 has held as under: 5. The learned counsel appearing for the respondent places reliance on the judgment of the Honourable Supreme Court Alembic Chemical Works Co. Ltd. v. CIT [1989] 43 Taxman 312/177 ITR 377 to support the contention that the assessee was engaged in related activities and had merely attempted an expansion of its activities, which resulted in the expenditure. The venture though not new, did not take off since the Government of India abandoned the project. It is also specifically argued that no question of law arises, since the issue o…

DCIT(Ltu) - 1, Mumbai vs. Acc Ltd., Mumbai

In the result, appeal filed by assessee is partly allowed

ITA 3246/MUM/2018[2012-13]Status: DisposedITAT Mumbai28 Feb 2023AY 2012-13

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Blem/S. Acc Ltd., V. Dcit – Range – 1(1) Mumbai {Formerly Known As The Associated Cement Companies, Ltd.,} Cement House, 121 M.K. Road, Churchgate Mumbai - 400020 Pan: Aaact1507C (Appellant) (Respondent) Dcit (Ltu)-1 V. M/S. Acc Ltd., 29Th Floor, Centre No.1 Cement House, 121 World Trade Centre, Cuffe Parade M.K. Road, Churchgate Mumbai - 400005 Mumbai - 400020 Pan: Aaact1507C (Appellant) (Respondent)

Section 143(3)Section 14A

…of CIT v. South India Corporation Ltd.[2020] 121 taxmann.com 84 has held as under: 5. The learned counsel appearing for the respondent places reliance on the judgment of the Honourable Supreme Court Alembic Chemical Works Co. Ltd. v. CIT [1989] 43 Taxman 312/177 ITR 377 to support the contention that the assessee was engaged in related activities and had merely attempted an expansion of its activities, which resulted in the expenditure. The venture though not new, did not take off since the Government of India abandoned the project. It is also specifically argued that no question of law arises, since the issue o…

Acc Limited (Formerly Known As the Associated Cement Companies Ltd.), Mumbai vs. Addll. CIT, RG. 1(1), Mumbai

In the result, appeal filed by assessee is partly allowed

ITA 3203/MUM/2018[2012-13]Status: DisposedITAT Mumbai28 Feb 2023AY 2012-13

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Blem/S. Acc Ltd., V. Dcit – Range – 1(1) Mumbai {Formerly Known As The Associated Cement Companies, Ltd.,} Cement House, 121 M.K. Road, Churchgate Mumbai - 400020 Pan: Aaact1507C (Appellant) (Respondent) Dcit (Ltu)-1 V. M/S. Acc Ltd., 29Th Floor, Centre No.1 Cement House, 121 World Trade Centre, Cuffe Parade M.K. Road, Churchgate Mumbai - 400005 Mumbai - 400020 Pan: Aaact1507C (Appellant) (Respondent)

Section 143(3)Section 14A

…of CIT v. South India Corporation Ltd.[2020] 121 taxmann.com 84 has held as under: 5. The learned counsel appearing for the respondent places reliance on the judgment of the Honourable Supreme Court Alembic Chemical Works Co. Ltd. v. CIT [1989] 43 Taxman 312/177 ITR 377 to support the contention that the assessee was engaged in related activities and had merely attempted an expansion of its activities, which resulted in the expenditure. The venture though not new, did not take off since the Government of India abandoned the project. It is also specifically argued that no question of law arises, since the issue o…

Maruti Suzuki India Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the Revenue in ITA No

ITA 961/DEL/2015[2010-11]Status: DisposedITAT Delhi09 Feb 2023AY 2010-11

Bench: Shri Shamim Yahya & Shri Kul Bharat[Assessment Year : 2010-11] Maruti Suzuki India Ltd., Vs Dcit, Plot No.1, Nelson Mandela Road, Circle-16(1), Vasant Kunj, New Delhi-110070. New Delhi. Pan-Aaacm0829Q Appellant Respondent [Assessment Year : 2010-11] Dcit, Vs Maruti Suzuki India Ltd., Circle-16(1), Plot No.1, Nelson Mandela Road, New Delhi. Vasant Kunj, New Delhi-110070. Pan-Aaacm0829Q Appellant Respondent Appellant By Shri Ajay Vohra, Sr.Adv., Shri Neeraj Jain, Adv. & Ms. Tejasvi Jain & Ms. Somya Jain, Ca Respondent By Shri G.C.Srivastava, Adv., Shri Kalrav Mehrotra, Adv. & Shri Mayank Patawari, Ca Date Of Hearing 11.11.2022 Date Of Pronouncement 09.02.2023

Section 143(3)Section 144CSection 144C(5)Section 43Section 43B

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “I” BENCH: NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER & SHRI KUL BHARAT, JUDICIAL MEMBER [Assessment Year : 2010-11] Maruti Suzuki India Ltd., vs DCIT, Plot No.1, Nelson Mandela Road, Circle-16(1), Vasant Kunj, New Delhi-110070. New Delhi. PAN-AAACM0829Q APPELLANT RESPONDENT [Assessment Year : 2010-11] DCIT, vs Maruti Suzuki India Ltd., Circle-16(1), Plot No.1, Nelson Mandela Road, New Delhi. Vasant Kunj, New Delhi-110070. PAN-AAACM0829Q APPELLANT RESPONDENT Appellant by Shri Ajay Vohra, Sr.Adv., Shri Neeraj Jain, Adv. & Ms. Tejasvi Jain & Ms. Somya Jain, CA R…

DCIT, New Delhi vs. M/S. Maruti Suzuki India Ltd., New Delhi

In the result, the appeal of the Revenue in ITA No

ITA 1507/DEL/2015[2010-11]Status: DisposedITAT Delhi09 Feb 2023AY 2010-11

Bench: Shri Shamim Yahya & Shri Kul Bharat[Assessment Year : 2010-11] Maruti Suzuki India Ltd., Vs Dcit, Plot No.1, Nelson Mandela Road, Circle-16(1), Vasant Kunj, New Delhi-110070. New Delhi. Pan-Aaacm0829Q Appellant Respondent [Assessment Year : 2010-11] Dcit, Vs Maruti Suzuki India Ltd., Circle-16(1), Plot No.1, Nelson Mandela Road, New Delhi. Vasant Kunj, New Delhi-110070. Pan-Aaacm0829Q Appellant Respondent Appellant By Shri Ajay Vohra, Sr.Adv., Shri Neeraj Jain, Adv. & Ms. Tejasvi Jain & Ms. Somya Jain, Ca Respondent By Shri G.C.Srivastava, Adv., Shri Kalrav Mehrotra, Adv. & Shri Mayank Patawari, Ca Date Of Hearing 11.11.2022 Date Of Pronouncement 09.02.2023

Section 143(3)Section 144CSection 144C(5)Section 43Section 43B

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “I” BENCH: NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER & SHRI KUL BHARAT, JUDICIAL MEMBER [Assessment Year : 2010-11] Maruti Suzuki India Ltd., vs DCIT, Plot No.1, Nelson Mandela Road, Circle-16(1), Vasant Kunj, New Delhi-110070. New Delhi. PAN-AAACM0829Q APPELLANT RESPONDENT [Assessment Year : 2010-11] DCIT, vs Maruti Suzuki India Ltd., Circle-16(1), Plot No.1, Nelson Mandela Road, New Delhi. Vasant Kunj, New Delhi-110070. PAN-AAACM0829Q APPELLANT RESPONDENT Appellant by Shri Ajay Vohra, Sr.Adv., Shri Neeraj Jain, Adv. & Ms. Tejasvi Jain & Ms. Somya Jain, CA R…

M/S. Continental Automotive Components India Private Limited, Bengaluru vs. Deputy Commissioner of Income Tax, Circle-2(1)(1), Bangalore

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

ITA 280/BANG/2021[2016-17]Status: DisposedITAT Bangalore06 Feb 2023AY 2016-17

Bench: Shri George George K. & Ms. Padmavathy S

For Appellant: Shri T. Suryanarayana, AdvocateFor Respondent: Ms. Neera Malhotra, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 234BSection 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH : BANGALORE BEFORE SHRI GEORGE GEORGE K., JUDICIAL MEMBER AND Ms. PADMAVATHY S, ACCOUNTANT MEMBER IT(TP)A No.280/Bang/2021 Assessment year : 2016-17 M/s. Continental Automotive Vs. The Deputy Commissioner Components India Pvt. Ltd., of Income Tax, Plot No.53B, Circle 2(1)(1), Bommasandra Industrial Area, Bengaluru. Hosur Road, Attibele Hobli, Anekal Taluk, Bengaluru – 560 099. PAN: AAKCS 9578C ASSESSEE RESPONDENT Assessee by : Shri T. Suryanarayana, Advocate Respondent by : Ms. Neera Malhotra, CIT(DR)(ITAT), Bengaluru. Date of hearing : 12.01.2023 Date of Pronoun…

DCIT, C-11(1), New Delhi vs. Hero Motocorp Ltd., New Delhi

Appeal of the Revenue is dismissed

ITA 1982/DEL/2019[2014-15]Status: DisposedITAT Delhi03 Feb 2023AY 2014-15

Bench: Shri Narendra Kumar Billaiya & Shri Kul Bharat

Section 14ASection 2(22)(e)Section 40Section 40a

…as opposed to 48 acquisition of ownership rights therein, the payment made would be regarded as revenue expenditure. - CIT v. Ciba India Ltd.: 69 ITR 692 (SC) - CIT vs. British India Corp. Ltd. [1987] 165 ITR 51 (SC) - Alembic Chemical Works Co. Ltd. v. CIT: 177 ITR 377 (SC) - Shriram Refrigeration Industries Ltd. v. CIT: 127 ITR 746 (Del HC) - Triveni Engineering Works Ltd. vs. CIT : 136 ITR 340 (Del) - Addl. CIT vs. Shama Engine Valves Ltd. : 138 ITR 217 (Del) - CIT vs. Bhai Sunder Dass & Sons P. Ltd. : 158 ITR 195 (Del) - CIT vs. Lumax Industries Ltd. : 173 Taxman 390 (Del) - Shriram Pistons & Rings Ltd. vs.…

Deputy Commissioner of Income Tax Circle-3(1)(1), Bangalore vs. M/S Infosys Limited, Bangalore

In the result, the appeal filed by the assessee as well as by revenue are partly allowed for statistical purposes

ITA 809/BANG/2018[2013-14]Status: DisposedITAT Bangalore09 Jan 2023AY 2013-14

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariit(Tp)A No.735/Bang/2018 Assessment Year: 2013-14

For Appellant: Shri Padam Chand Khincha, A.RFor Respondent: Sri Sreenivas T. Bidari, D.R
Section 11Section 14ASection 194JSection 234BSection 40Section 80J

…aside the issue of allowability of software expenses to Ld.AO with a direction to verify the nature and purpose of software expenses and decide in the light of decisions in, Empire Jute Co Ltd reported in 124 ITR 1, Alembic Chemicals Works Co Ltd reported in 177 ITR 377, IBM India Ltd 357 ITR 88 etc. The relevant extracts are under. The Ld.AR submitted that, following the direction of this Tribunal, the Ld.AO passed the OGE to ITAT order on 3.9.2019 and allowed the software expenses as revenue expenditure. 11.5. The Ld.AR submitted that the software expenses were for software licenses in respect of application…

M/S Infosys Ltd, Bangalor E vs. The Assistant Commissioner of Income Tax Circle-3(1)(1), Bangalore

In the result, the appeal filed by the assessee as well as by revenue are partly allowed for statistical purposes

ITA 735/BANG/2018[2013-14]Status: DisposedITAT Bangalore09 Jan 2023AY 2013-14

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariit(Tp)A No.735/Bang/2018 Assessment Year: 2013-14

For Appellant: Shri Padam Chand Khincha, A.RFor Respondent: Sri Sreenivas T. Bidari, D.R
Section 11Section 14ASection 194JSection 234BSection 40Section 80J

…aside the issue of allowability of software expenses to Ld.AO with a direction to verify the nature and purpose of software expenses and decide in the light of decisions in, Empire Jute Co Ltd reported in 124 ITR 1, Alembic Chemicals Works Co Ltd reported in 177 ITR 377, IBM India Ltd 357 ITR 88 etc. The relevant extracts are under. The Ld.AR submitted that, following the direction of this Tribunal, the Ld.AO passed the OGE to ITAT order on 3.9.2019 and allowed the software expenses as revenue expenditure. 11.5. The Ld.AR submitted that the software expenses were for software licenses in respect of application…

Dic India Ltd., Kolkata vs. DCIT, Circle - 10(1), Kolkata

In the result, the appeal of the assessee is allowed

ITA 2084/KOL/2018[2014-15]Status: DisposedITAT Kolkata04 Jan 2023AY 2014-15

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarmai.T.A. No. 2084/Kol/2018 Assessment Year: 2014-2015 Dic India Limited,..................................Appellant Transport Depot Road, Kolkata-700088 [Pan: Aabcc0703C] -Vs.- Deputy Commissioner Of Income Tax,......Respondent Circle-10(1), Aayakarbhawan, P-7, Chowringhee Square, Kolkata-700069 Appearances By: Shri Akkaldudhwewala, A.R., Appeared On Behalf Of The Assessee Shri Hukumasema, Cit, Appeared On Behalf Of The Revenue

Section 144CSection 144C(5)

…case of Timken India Ltd vs CIT reported in (2014) 51 taxmann.com 184 (Calcutta) dated 30.7.2014 which considered the decisions relied upon by the ld. AR [i.eCIT vs I.A.E.C. (Pumps) Ltd- 232 ITR 316 (SC) and ld. DR (i.eAlembic Chemical Works Co. Ltd vs CIT - 177 ITR 377 (SC) ]. The Hon‟ble Calcutta High Court held. as under:- 5. Mr.Majumdar, learned advocate appearing in support of the appeal, submitted that the facts and circumstances of the present case are identical with those in the case ofAlembic Chemical Works Co. Ltd. v. CIT [1989] 177 ITR 377/43 Taxman 312 (SC). The assessee company, he contended, was al…

Regan Powertech Pvt Ltd, Chennai vs. DCIT, CC-5(1), Chennai

In the result, appeal filed by the assessee in ITA No

ITA 572/CHNY/2021[2016-17]Status: DisposedITAT Chennai07 Dec 2022AY 2016-17

Bench: Shri Mahavir Singh, Hon’Ble & Shri G. Manjunatha, Hon’Bleआयकर अपील सं./Ita Nos.571 & 572/Chny/2021 िनधा"रण वष" /Assessment Year: 2015-16 & 2016-17 V. M/S.Regen Powertech Pvt. Ltd., The Dy. Commissioner – Sivanandam, Of Income Tax, No.1, Pulla Avenue, Corporate Circle-5(1), Shenoy Nagar, Chennai. Chennai- 600 030. [Pan: Aadcr 5531 M] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Mr.B.Ramakrishnan, FCAFor Respondent: Mr.S. Marudhu Pandian, CIT
Section 32(1)(iia)Section 35Section 35(1)(i)Section 35(1)(iv)Section 37(1)

…i High Court in the case of Hilton Roulunds Ltd. vs. CIT, 412 ITR 436, after analyzing the decisions of Hon’ble Supreme Court in the cases of CIT vs. CIBA of India Ltd, 69 ITR 692, Empire Jute Co. Ltd vs. CIT, 124 ITR 1 and Alembic Chemical Works Ltd vs. CIT, 177 ITR 377 had held that license is only mere right to use the technical knowhow or trade mark. From the perusal of the license agreement, it is clear that appellant is conferred only right to use technical knowhow. The ownership always lies with licensor and the assessee had already set up the business. The technical knowhow is not used for the purpose of…

Regan Powertech Pvt Ltd, Chennai vs. DCIT, CC-5(1), Chennai

In the result, appeal filed by the assessee in ITA No

ITA 571/CHNY/2021[2015-16]Status: DisposedITAT Chennai07 Dec 2022AY 2015-16

Bench: Shri Mahavir Singh, Hon’Ble & Shri G. Manjunatha, Hon’Bleआयकर अपील सं./Ita Nos.571 & 572/Chny/2021 िनधा"रण वष" /Assessment Year: 2015-16 & 2016-17 V. M/S.Regen Powertech Pvt. Ltd., The Dy. Commissioner – Sivanandam, Of Income Tax, No.1, Pulla Avenue, Corporate Circle-5(1), Shenoy Nagar, Chennai. Chennai- 600 030. [Pan: Aadcr 5531 M] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Mr.B.Ramakrishnan, FCAFor Respondent: Mr.S. Marudhu Pandian, CIT
Section 32(1)(iia)Section 35Section 35(1)(i)Section 35(1)(iv)Section 37(1)

…i High Court in the case of Hilton Roulunds Ltd. vs. CIT, 412 ITR 436, after analyzing the decisions of Hon’ble Supreme Court in the cases of CIT vs. CIBA of India Ltd, 69 ITR 692, Empire Jute Co. Ltd vs. CIT, 124 ITR 1 and Alembic Chemical Works Ltd vs. CIT, 177 ITR 377 had held that license is only mere right to use the technical knowhow or trade mark. From the perusal of the license agreement, it is clear that appellant is conferred only right to use technical knowhow. The ownership always lies with licensor and the assessee had already set up the business. The technical knowhow is not used for the purpose of…