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

Deputy Commissioner of Income Tax, Central Circle-1(3), Bangalore vs. M/S. Wipro Ge Medical Systems Limited, Bangalore

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

ITA 1020/BANG/2007[2000-01]Status: DisposedITAT Bangalore30 Nov 2022AY 2000-01

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year : 2000-01 M/S. Wipro Ge The Deputy Medical Systems Ltd., Commissioner Of Plot No. 4, Kadugodi Income Tax, Indl. Area, Central Circle – Sadaramangala, 1(3), Vs. Bangalore – 560 067. Bangalore. Pan: Aaacw1685G Appellant Respondent : Shri K.R. Pradeep & Assessee By Smt. Girija G.P., Advocates : Shri K.R. Narayana, Addl. Revenue By Cit-Dr Date Of Hearing : 21-10-2022 Date Of Pronouncement : 30-11-2022 Order Per Beena Pillaipresent Appeal Arises Out Of Remand By Hon'Ble Karnataka High Court In Ita No. 1058/2008 Vide Order Dated 02/12/2016 In An Appeal Filed By Revenue. 2. The Ld.Ar Submitted That Revenue Filed Appeal Before The Hon’Ble Karnataka High Court Against Order Dated 20/06/2008 Passed By This Tribunal On Following Issues. 1) Reduction In Claim Of Exemption Of Profits U/S. 10A. 2) Reduction In Claim U/S. 80Hhe.

For Respondent: Shri K.R. Pradeep &
Section 10ASection 80HSection 80I

…hese payments made. The said expenditure was incurred wholly and exclusively for the purposes of the business and no tangible asset accrued to the assessee. The appellant has relied on the decisions of the Supreme Court in 124 ITR 1- Empire Jute Co Ltd v CIT, 177 ITR 377 — Alembic Chemical Works Co Ltd v CIT, 288 ITR 1 — S.A. Builders Pvt Ltd and the decision of the jurisdictional High Court in the case of Mcdowell Co Ltd in ITA.No. 12/99, and also recent decision of the ITAT, Kolkatta in the case of Shaw Wallace & Co Ltd in ITA.No. 470/Ca1/1998. Further, it is submitted similar type of payment made in the AY: 19…

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

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

ITA 718/BANG/2017[2012-13]Status: DisposedITAT Bangalore28 Nov 2022AY 2012-13

Bench: Shri Chandra Poojaria & Smt. Beena Pillaiassessment Appeal No. Appellant Respondent Year M/S. Infosys Ltd., The Assistant Electronic City, Commissioner It(Tp)A No. Hosur Road, Of Income Tax, 2012-13 718/Bang/2017 Bangalore – 560 Circle – 100. 3(1)(1), Pan: Bangalore. Aaaci4798L : Shri Padamchand Khincha, Assessee By Ca : Shri K.V. Arvind & Shri Dilip, Revenue By Standing Counsels For Dept. Date Of Hearing : 15-09-2022 Date Of Pronouncement : 28-11-2022 Order Per Beena Pillaipresent Appeal Arises Out Of Final Assessment Order Dated 28/02/2017 Passed By The Ld.Acit, Circle – 3(1)(1), Bangalore For A.Y. 2012-13 On Following Grounds Of Appeal: General & Legal Grounds 1. The Order Passed By The Learned Assessing Officer & The Directions Of Hon’Ble Drp To The Extent Prejudicial To The Appellant Is Bad In Law & Liable To Be Quashed. Grounds On Denial Of Deduction Claimed Under Section 10Aa In Respect Of 4 Sez Units Viz., Chennai – Unit 1, Chandigarh, Mangalore - Unit 1 & Pune Unit 1 2. The Learned Assessing Officer Has Erred In Denying Deduction Claimed Under Section 10Aa In The Return Of Income Totally Amounting To Rs. 2227,82,65,630 In Respect

Section 10ASection 14ASection 2Section 2(24)Section 40

…he nature and purpose of software Without prejudice, depreciation to be 22 expenses and decide in the light of decisions allowed at 60% instead of 25% 23 in Empire Jute Co Ltd 124 ITR 1, Alembic Without prejudice, depreciation should 24 Chemicals Works Co Ltd 177 ITR 377, IBM also be allowed in respect of software India Ltd 357 ITR 88 etc. expenses of earlier years held as CIT v Toyota Kirloskar Motor P Ltd [2012] 349 capital in nature. ITR 65 (Kar) dt. 23.3.2011 CIT v IBM India Ltd [2013] 357 ITR 88 dt. 10.4.2013 Infosys BPO Ltd v DCIT ITA No 1367/B/2014 decision dated 27.9.2019 for AY 2007-08 – Your honour’s or…

DCIT. Circle-4(1)(2), Ahmedabad vs. M/S. Torque Automotive Pvt. Ltd., Ahmedabad

In the result, the appeal of the Revenue is dismissed

ITA 1990/AHD/2018[2015-16]Status: DisposedITAT Ahmedabad23 Nov 2022AY 2015-16

Bench: Smt. Annapurna Gupta & Shri T.R. Senthil Kumarassessment Year : 2015-16 M/S. Torque Automotive Pvt. Dcit Ltd., Circle-4(1)(2), 2Nd Floor, Mrudul Tower, Ahmedabad Vs Behind Times Of India, Ashram Road, Ahmedabad- 380009 [Pan No. : Aacct6528R] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Appellant By : None Respondent By : Shri Alok Kumar, Cit Dr सुनवाई क" तार"ख/Date Of Hearing: 19.09.2022 घोषणा क" तार"ख /Date Of Pronouncement: 23.11.2022

For Appellant: NoneFor Respondent: Shri Alok Kumar, CIT DR
Section 271(1)(c)

…being in the sole business of dealing in Cars / Spares of Honda Company can legitimately think it expedient to prepare its show room, workshop in accordance with such standards The Hon'ble Supreme Court in the case of Alembic Chemical Works Co. Ltd. V/s. CIT 177 ITR 377 held, "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 high priority resear…

ACIT Large Tax Payer Unit 2, Chennai vs. M/S India Japan Lighting Limited, Chennai

In the result, the appeals filed by the Revenue are

ITA 719/CHNY/2018[2014-15]Status: DisposedITAT Chennai23 Nov 2022AY 2014-15

Bench: Shri Mahavir Singh & Shri G. Manjunathaआयकरअपीलसं./Ita Nos.: 718 & 719/Chny/2018 िनधा"रणवष" / Assessment Years: 2011-12 & 2014-15

For Appellant: Shri. AR V Sreenivasan, Addl. CITFor Respondent: Shri. N V Balaji, Advocate
Section 143(3)Section 14A

…on of technical know-how year after year have been held by the Hon'ble Madras High Court as ‘revenue expenditure’. In this regard, reliance was also placed on the decision of Hon'ble Supreme Court rendered in the case of Alembic Chemical Works Co. Ltd vs CIT, 177 ITR 377. The ld.DR has relied on various decisions and has filed their zerox copies before us. 4. A piquant situation has arisen because it is a case where royalty was paid initially and also running expenses towards royalty are being paid year after year. As per this agreement for :-6-: ITA. No: 718 & 719/Chny/2018 transfer of know-how as technical ai…

ACIT Large Tax Payer Unit 2, Chennai vs. M/S India Japan Lighting Limited, Chennai

In the result, the appeals filed by the Revenue are

ITA 718/CHNY/2018[2011-12]Status: DisposedITAT Chennai23 Nov 2022AY 2011-12

Bench: Shri Mahavir Singh & Shri G. Manjunathaआयकरअपीलसं./Ita Nos.: 718 & 719/Chny/2018 िनधा"रणवष" / Assessment Years: 2011-12 & 2014-15

For Appellant: Shri. AR V Sreenivasan, Addl. CITFor Respondent: Shri. N V Balaji, Advocate
Section 143(3)Section 14A

…on of technical know-how year after year have been held by the Hon'ble Madras High Court as ‘revenue expenditure’. In this regard, reliance was also placed on the decision of Hon'ble Supreme Court rendered in the case of Alembic Chemical Works Co. Ltd vs CIT, 177 ITR 377. The ld.DR has relied on various decisions and has filed their zerox copies before us. 4. A piquant situation has arisen because it is a case where royalty was paid initially and also running expenses towards royalty are being paid year after year. As per this agreement for :-6-: ITA. No: 718 & 719/Chny/2018 transfer of know-how as technical ai…

Rosebys Interiors India Ltd., Ahmedabad vs. The Asstt. Commissioner of Income Tax, Circel-5, Ahmedabad

In the result, this Ground of appeal of the Department is dismissed

ITA 204/AHD/2017[2010-11]Status: DisposedITAT Ahmedabad04 Nov 2022AY 2010-11
For Appellant: Shri Mukund Bakshi, A.RFor Respondent: Shri Sudhendu Das, CIT-D.R
Section 234ASection 271Section 37

…THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “D” BENCH Before: Shri P.M. Jagtap, Vice President And Shri Siddhartha Nautiyal, Judicial Member ITA No. 153 /Ahd/2017 Assessment Year 2010-11 The DCIT, M/s. Rosebys Interiors Circle-3(1)(1), India Ltd., GHCL Ahmedabad Vs House, Opp. Punjabi (Appellant) Hall, Nr. Navrangpura, Ahmedabad PAN: AADCR8816M (Respondent) Assessment Year 2010-11 M/s. Rosebys Interiors The ACIT, India Ltd., GHCL House, Circle-5, Opp. Punjabi Hall, Nr. Vs Ahmedabad Navrangpura, Ahmedabad (Respondent) PAN: AADCR8816M (Appellant) Assessee by: Shri Mukund Bakshi, A.R. Revenue by: Shri Sudh…

The DCIT, Circle-3(1)(1), Ahmedabad vs. M/S. Rosebys Interiors India Ltd., Ahmedabad

In the result, this Ground of appeal of the Department is dismissed

ITA 153/AHD/2017[2010-11]Status: DisposedITAT Ahmedabad04 Nov 2022AY 2010-11
For Appellant: Shri Mukund Bakshi, A.RFor Respondent: Shri Sudhendu Das, CIT-D.R
Section 234ASection 271Section 37

…THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “D” BENCH Before: Shri P.M. Jagtap, Vice President And Shri Siddhartha Nautiyal, Judicial Member ITA No. 153 /Ahd/2017 Assessment Year 2010-11 The DCIT, M/s. Rosebys Interiors Circle-3(1)(1), India Ltd., GHCL Ahmedabad Vs House, Opp. Punjabi (Appellant) Hall, Nr. Navrangpura, Ahmedabad PAN: AADCR8816M (Respondent) Assessment Year 2010-11 M/s. Rosebys Interiors The ACIT, India Ltd., GHCL House, Circle-5, Opp. Punjabi Hall, Nr. Vs Ahmedabad Navrangpura, Ahmedabad (Respondent) PAN: AADCR8816M (Appellant) Assessee by: Shri Mukund Bakshi, A.R. Revenue by: Shri Sudh…

The ACIT, Circle-5, Ahmedabad vs. M/S. Rosebys Interiors India Ltd., Ahmedabad

In the result, appeal of the Department is dismissed

ITA 1047/AHD/2015[2009-10]Status: DisposedITAT Ahmedabad04 Nov 2022AY 2009-10
For Appellant: Shri Mukund Bakshi, A.RFor Respondent: Shri Sudhendu Das, CIT-D.R
Section 271(1)(c)Section 37

…assessee, that factor alone was not sufficient to treat the expenditure as capital expenditure. The Tribunal has relied on the two apex court decisions in the case of Empire Jute Co. Ltd. v. CITfigSo] 124ITR i and Alembic Chemical Works Co. Ltd. v. CIT [1989] 177 ITR 377. 14. In relation to the first item, namely, advertisement expenses, it is not in dispute that the expenditure of Rs. 70 lakhs and odd was incurred on a special advertisement campaign. However, that by itself would not be sufficient to determine as to whether the expenditure in question is on revenue account or capital account....... making of an…

Garve Motors Pvt.Ltd, Pune vs. Assistant Commissioner of Income-Tax, Circle - 9, Pune

ITA 776/PUN/2018[2013-14]Status: DisposedITAT Pune31 Oct 2022AY 2013-14

Bench: Shri S. S. Godara & Shri G. D. Padmahshaliआयकर अपीऱ सं. / Ita No.776/Pun/2018 निर्धारण वर्ा / Assessment Year : 2013-2014 Garve Motors Pvt. Ltd., S.No.136/1A 46, B P Road, Pune – 411016 . . . . . . . अपीऱधर्थी / Appellant Pan:Aadcg4391A बनाम / V/S. Asst. Commissioner Of Income Tax, . . . . . . . . प्रत्यर्थी / Respondent Circle – 9, Pune द्वारा / Appearances Assessee By : Mrs. Deepa Khare Revenue By : Shri M. G. Jasnani सुनवाई की तारीख / Date Of Conclusive Hearing : 26/09/2022 घोषणा की तारीख / Date Of Pronouncement : 07/10/2022 आदेश / Order Per G. D. Padmahshali, Am; The Extant Appeal Challenges The Order Of Commissioner Of Income Tax (Appeals)-6, Pune [For Short “Cit(A)”] Dt. 06/12/2017 Passed U/S 250 Of The Income-Tax Act, 1961 [For Short “The Act”], Which Climbed Out Of Order Of Assessment Dt. 15/03/2016 Passed U/S 143(3) By The Asstt. Commissioner Of Income Tax, Circle-9, Pune [For Short “Ao”] For Assessment Year [For Short “Ay”] 2013-14. Itat-Pune Page 1 Of 12

For Appellant: Mrs. Deepa KhareFor Respondent: Shri M. G. Jasnani
Section 143(2)Section 143(3)Section 250Section 36(1)(iii)Section 40a

…o whether or not such extensive repairs is of enduring nature is extensively dealt ITAT-Pune Page 10 of 12 Grave Motors Pvt. Ltd. ITA No.776/PUN/2018 AY: 2013-14 by the Hon’ble Supreme Court in the case of “Alembic Chemical Works Co. Ltd. Vs CIT” reported in 177 ITR 377, wherein the Lordships have vide para 9 observed that; “The idea of “once for all” payment and “enduring benefit” are not to be treated as something akin to statutory conditions ,nor are the notions of “capital” or “revenue” a judicial fetish. What is capital expenditure and what is revenue are not eternal verities but must needs be flexible so a…

M/S. India Medtronics Pvt.Ltd., Baroda vs. The Dy.CIT., Circle-1(2), Baroda

In the result, similarly the Assessee’s appeal is partly allowed

ITA 480/AHD/2011[2005-06]Status: DisposedITAT Mumbai30 Sept 2022AY 2005-06

Bench: Shri Amit Shukla & Shri Gagan Goyal

For Appellant: Sh. Rajan R. Vora with Sh. Nikhil TiwariFor Respondent: Dr. Yogesh Kamath/ Akhtar Hussain Ansari
Section 234BSection 271Section 274Section 92C

…/Ahd/2010 – India Medtronic Private limited. that the amount incurred was small. Reliance was placed in the case of ACIT vs Asahi India Safety glass (2006) 6 SOT 0656, Empire Jute Co Ltd v CIT (1980) (124 ITR 1)(SC) and Alembic Chemical Works Co. Ltd. v. CIT [177 ITR 377 (SC)]. The ld. Departmental Representative relied on the assessment order. 82. We have considered rival submissions and perused material on record. Relying on the submissions made by the assessee and the decisions of ACIT vs Asahi India Safety glass (2006) 6 SOT 0656, Empire Jute Co Ltd v CIT (1980) (124 ITR 1)(SC) and Alembic Chemical Works Co.…

Titan Industries Limited, Hosur vs. JCIT, Chennai

The appeal stands partly allowed in terms of our above order

ITA 1913/CHNY/2011[2007-08]Status: DisposedITAT Chennai07 Sept 2022AY 2007-08

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Shri T. Suryanarayana (Sr. Advocate) for Shri Manasa Ananthan (Advocate) - Ld. AFor Respondent: Dr. S. Palani Kumar (CIT) –Ld. CIT-DR
Section 14ASection 801C

…cases. 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. v. CIT [1989] 177 ITR 377 / 43 Taxman 312 (SC); CIT v. J.K. SyntheticsLtd. [2009] 309 ITR 371 / 176 Taxman 355 (Delhi) and Indian Visit.com (P.) Ltd. (supra)]. 9.1 This is the approach which the Supreme Court has applied even in cases where there is a once for all or a lump sum payment. What is to be seen in the facts of this case, as already noticed by us hereinabove, th…

DCIT, Circle-16(1), New Delhi vs. Magic Bricks Reality Services Ltd, Delhi

In the result, the appeal of the Revenue is dismissed

ITA 6295/DEL/2018[2015-16]Status: DisposedITAT Delhi29 Aug 2022AY 2015-16

Bench: Shri G. S. Pannua N D Shri Challa Nagendra Prasad

For Appellant: Ms. Neha Gupta, C. AFor Respondent: Sr. D. R
Section 143(3)

…ustry in which the assessee operates. The ld. Counsel submits that the appeal filed by the Revenue before the Tribunal was dismissed. Reliance was also placed on the decision of the Hon’ble Supreme Court in the case of Alembic Chemical Works Co. Ltd. Vs. CIT (177 ITR 377). 9. It was contended by the assessee that it had to resort to advertisement to disseminate the information about services rendered through its website to be able to not only retain customers but also to attract more customers and expand its outreach resulting in more 6 I.T.A. No. 6295/Del/2018 advertisements and more revenue. It was contended…

Angalakshmi Spinning Mill, Coimbatore vs. NFAC, Delhi

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

ITA 513/CHNY/2021[2017-18]Status: DisposedITAT Chennai24 Aug 2022AY 2017-18

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwal

For Appellant: Shri N.Arjun Raj, CAFor Respondent: Shri AR.V. Sreenivasan, Addl.CIT
Section 115ISection 115JSection 143(3)Section 234CSection 80I

…deration various case laws decided by the Hon’ble Supreme Court of India including Assam Bengal Cement Co. Ltd., Vs. CIT reported as 27 ITR 34 (SC); Empire Jute Co. Ltd., Vs. CIT reported as 124 ITR 1 (SC); Alembic Chemical Works Co. Ltd., Vs. CIT reported as 177 ITR 377 (SC); and the order of the Tribunal in the case of M/s. Vijayeswari Textiles Ltd., in ITA No. 963/Mds/2011 for AY. 2006-07 dated 23-08-2011. The co-ordinate bench of the Tribunal after discussing the facts of the case and the aforesaid decisions of the Hon’ble Apex Court came to the conclusion that the expenditure incurred by the assessee on intr…

The DCIT, Circle-1(1)(1), Ahmedabad vs. M/S. Adani Enterprise Ltd, Ahmedabad

In the result appeal of the Revenue is hereby partly allowed

ITA 523/AHD/2020[2016-17]Status: DisposedITAT Ahmedabad17 Aug 2022AY 2016-17

Bench: Shri Mahavir Prasad & Shri Waseem Ahmed

For Respondent: Shri Vartik Choksi, A.R
Section 1Section 143(3)

…ocess and need to be expended in order to generate and increase the brand recall and sustain it in the minds of customers. Whether or not expenditure is of enduring nature, the Hon'ble Supreme Court in the case of Alembic Chemical Works Co. Ltd. v. CIT [1989] 177 ITR 377 has itself observed that : "The idea of "once for all" payment and "enduring benefit" are not to be treated as something akin to statutory conditions; nor are the notions of "capital" or "revenue" a judicial fetish. What is capital expenditure and what is revenue are not eternal verities but must needs be flexible so as to respond to the changin…

The DCIT Circle-1(1)(1), Ahmedabad vs. M/S. Adani Enterprise Ltd, Ahmedabad

In the result appeal of the Revenue is hereby partly allowed

ITA 472/AHD/2020[2015-16]Status: DisposedITAT Ahmedabad17 Aug 2022AY 2015-16

Bench: Shri Mahavir Prasad & Shri Waseem Ahmed

For Respondent: Shri Vartik Choksi, A.R
Section 1Section 143(3)

…ocess and need to be expended in order to generate and increase the brand recall and sustain it in the minds of customers. Whether or not expenditure is of enduring nature, the Hon'ble Supreme Court in the case of Alembic Chemical Works Co. Ltd. v. CIT [1989] 177 ITR 377 has itself observed that : "The idea of "once for all" payment and "enduring benefit" are not to be treated as something akin to statutory conditions; nor are the notions of "capital" or "revenue" a judicial fetish. What is capital expenditure and what is revenue are not eternal verities but must needs be flexible so as to respond to the changin…

DCIT, Circle-1(1)(1), Ahmedabad vs. Adani Enterprises Ltd., Ahmedabad

In the result appeal of the Revenue is hereby partly allowed

ITA 336/AHD/2020[2014-15]Status: DisposedITAT Ahmedabad17 Aug 2022AY 2014-15

Bench: Shri Mahavir Prasad & Shri Waseem Ahmed

For Respondent: Shri Vartik Choksi, A.R
Section 1Section 143(3)

…ocess and need to be expended in order to generate and increase the brand recall and sustain it in the minds of customers. Whether or not expenditure is of enduring nature, the Hon'ble Supreme Court in the case of Alembic Chemical Works Co. Ltd. v. CIT [1989] 177 ITR 377 has itself observed that : "The idea of "once for all" payment and "enduring benefit" are not to be treated as something akin to statutory conditions; nor are the notions of "capital" or "revenue" a judicial fetish. What is capital expenditure and what is revenue are not eternal verities but must needs be flexible so as to respond to the changin…

DCIT, Circle-1(1)(1), Ahmedabad vs. Adani Enterprises Ltd., Ahmedabad

In the result appeal of the Revenue is hereby partly allowed

ITA 285/AHD/2020[2013-14]Status: DisposedITAT Ahmedabad17 Aug 2022AY 2013-14

Bench: Shri Mahavir Prasad & Shri Waseem Ahmed

For Respondent: Shri Vartik Choksi, A.R
Section 1Section 143(3)

…ocess and need to be expended in order to generate and increase the brand recall and sustain it in the minds of customers. Whether or not expenditure is of enduring nature, the Hon'ble Supreme Court in the case of Alembic Chemical Works Co. Ltd. v. CIT [1989] 177 ITR 377 has itself observed that : "The idea of "once for all" payment and "enduring benefit" are not to be treated as something akin to statutory conditions; nor are the notions of "capital" or "revenue" a judicial fetish. What is capital expenditure and what is revenue are not eternal verities but must needs be flexible so as to respond to the changin…

Dy. Commissioner of Income Tax, Circle-16(2), Hyderabad vs. Eenadu Television Private Limited, Hyderabad

In the result, the appeal of Revenue is partly allowed for statistical purposes

ITA 2244/HYD/2018[2015-16]Status: DisposedITAT Hyderabad22 Jul 2022AY 2015-16

Bench: Shri Rama Kanta Panda & Shri Laliet Kumar

For Appellant: Shri V. Siva KumarFor Respondent: Shri Rajendra Kumar, CIT
Section 115JSection 143(3)Section 251(1)

…year 1994-95 and all along the cost of production of such expenditure has been treated as revenue expenditure and also allowed by the Department. Learned A.R. has referred to judgment of Hon'ble Supreme Court in the case of Alembic Chemical Works Ltd. vs. CIT 177 ITR 377 which laid down that what is capital expenditure and what is revenue are not eternal verities but must needs to be ITA No. 1806/Hyd/17 Eenadu Television Pvt. Ltd. flexible so as to respond to the changing economic realities of business. Viewed in that perspective, we are of the opinion that the estimated value assigned to the News Archives cannot…

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

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

ITA 570/CHNY/2021[2014-15]Status: DisposedITAT Chennai15 Jul 2022AY 2014-15

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./I.T.A. No.476/Chny/2020 िनधा"रण वष"/Assessment Year: 2014-15 The Joint Commissioner Of Vs. M/S. Regen Powertech Pvt. Ltd., Income Tax, Sivanandam, No. 1, Pulla Avenue, Corporate Circle 5(1), Shenoy Nagar, Chennai 600 030. Chennai 600 034. [Pan:Aadcr5531M] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.570/Chny/2021 िनधा"रण वष"/Assessment Year: 2014-15 M/S. Regen Powertech Pvt. Ltd., Vs. The Deputy Commissioner Of Sivanandam, No. 1, Pulla Avenue, Income Tax, Corporate Circle 5(1), Shenoy Nagar, Chennai 600 030. Chennai 600 034. (अपीलाथ"/Appellant) (""थ"/Respondent) Department By : Shri R. Venkateswara Reddy, Cit Assessee By : Shri B. Ramakrishnan, Fca सुनवाई की तारीख/ Date Of Hearing : 09.05.2022 घोषणा की तारीख /Date Of Pronouncement : 15.07.2022 आदेश /O R D E R Per V. Durga Rao: Both The Cross Appeals Filed By The Revenue & The Assessee Are Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) 3, Chennai, Dated 16.12.2019 For The Assessment Year 2014-

For Appellant: Shri B. Ramakrishnan, FCAFor Respondent: Shri R. Venkateswara Reddy, CIT
Section 37(1)Section 41(1)Section 43B

…i High Court in the case of Hilton Roulunds Ltd vs. CIT, 412 ITR 436, after analyzing the decisions of the Hon'ble Supreme Court in the case of CIT vs CIBA of India Ltd, 69 ITR 692, Empire Jute Co. Ltd vs. CIT, 124 ITR T 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…

JCIT(OSD) Corporate Circle 5 (1), Chennai vs. Regen Powertech Private Limited, Chennai

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

ITA 476/CHNY/2020[2014-15]Status: DisposedITAT Chennai15 Jul 2022AY 2014-15

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./I.T.A. No.476/Chny/2020 िनधा"रण वष"/Assessment Year: 2014-15 The Joint Commissioner Of Vs. M/S. Regen Powertech Pvt. Ltd., Income Tax, Sivanandam, No. 1, Pulla Avenue, Corporate Circle 5(1), Shenoy Nagar, Chennai 600 030. Chennai 600 034. [Pan:Aadcr5531M] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.570/Chny/2021 िनधा"रण वष"/Assessment Year: 2014-15 M/S. Regen Powertech Pvt. Ltd., Vs. The Deputy Commissioner Of Sivanandam, No. 1, Pulla Avenue, Income Tax, Corporate Circle 5(1), Shenoy Nagar, Chennai 600 030. Chennai 600 034. (अपीलाथ"/Appellant) (""थ"/Respondent) Department By : Shri R. Venkateswara Reddy, Cit Assessee By : Shri B. Ramakrishnan, Fca सुनवाई की तारीख/ Date Of Hearing : 09.05.2022 घोषणा की तारीख /Date Of Pronouncement : 15.07.2022 आदेश /O R D E R Per V. Durga Rao: Both The Cross Appeals Filed By The Revenue & The Assessee Are Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) 3, Chennai, Dated 16.12.2019 For The Assessment Year 2014-

For Appellant: Shri B. Ramakrishnan, FCAFor Respondent: Shri R. Venkateswara Reddy, CIT
Section 37(1)Section 41(1)Section 43B

…i High Court in the case of Hilton Roulunds Ltd vs. CIT, 412 ITR 436, after analyzing the decisions of the Hon'ble Supreme Court in the case of CIT vs CIBA of India Ltd, 69 ITR 692, Empire Jute Co. Ltd vs. CIT, 124 ITR T 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…