How many judgments cite Alembic Chemical Works Co. Ltd. v. CIT?

275 judgments on BharatTax cite Alembic Chemical Works Co. Ltd. v. CIT (177 ITR 377), spanning 2008 to 2026.

Which sections of the Income Tax Act does Alembic Chemical Works Co. Ltd. v. CIT come up under?

It is most often cited in judgments turning on Section 143(3), Section 37(1), Section 250, Section 32, Section 35(1)(iv), Section 35(2AB).

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 367,636 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 250 Section 32 Section 35(1)(iv)Section 35(2AB)Section 234B Section 35D

Read the full judgment

Issues it is cited on

test of enduring benefit enduring benefit section 35(2ab)section 40a(2)(b)revenue expenditure capital expenditure section 35 section 32 fair market value section 40(a)section 40a associated enterprise

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

Eli Lilly and Company India Pvt. Ltd., Gurgaon vs. DCIT, Circel-1(1), Gurgaon

ITA 7487/DEL/2018[2014-15]Status: DisposedITAT Delhi14 Oct 2019AY 2014-15

Bench: Shri Prashant Maharishi & Shri K.Narasimha Chary

For Appellant: Shri Ajay Vohra, AdvocateFor Respondent: Shri Vinay Kumar Karan, CIT-DR

Section 32

…to transfer, assign or convey such knowhow/technical information etc. to any third party. He placed reliance on many decisions including the decisions of the Hon’ble Apex court in CIT v. Ciba India Ltd.: 69 ITR 692 (SC);Alembic Chemical Works Co. Ltd. v. CIT: 177 ITR 377 (SC);CIT vs. British India Corp. Ltd.: 165 ITR 51 (SC);CIT v. Indian Oxygen Ltd.: 218 ITR 337 (SC);CIT v. IAEC (Pumps) Ltd: 232 ITR 316 (SC) ;CIT v. Wavin (India) Ltd. 236 ITR 314 (SC) and CIT vs. British India Corp. Ltd. [1987] 165 ITR 51 (SC)and also, the recent decision of the Hon’ble jurisdictional High Court in the case of Hilton Roulands Lt…

DCIT 10(3), Mumbai vs. Chemtex Global Engineers P.Ltd, Mumbai

The appeal of the revenue is dismissed

ITA 1626/MUM/2014[2009-10]Status: DisposedITAT Mumbai01 Oct 2019AY 2009-10

Bench: Shri M.Balaganesh, Am & Shri Ravish Sood, Jm The Dy. Commissioner Of Vs. M/S. Chemtex Global Income Tax 10(3), Engineers Pvt. Ltd., Room No.451, 4Th Floor Chemtex House, Aayakar Bhavan Main Street, Hiranandani Maharshi Karve Road Gardens, Powai, Mumbai – 400 020 Mumbai – 400 076 Pan/Gir No. Aaccc4458P (Appellant) .. (Respondent) M/S. Chemtex Global Vs. The Dy. Commissioner Of Engineers Pvt. Ltd., Income Tax 10(3), Room No.451, 4Th Floor Chemtex House, Main Street, Aayakar Bhavan Hiranandani Gardens, Maharshi Karve Road Powai, Mumbai – 400 020 Mumbai – 400 076 Pan/Gir No. Aaccc4458P (Appellant) .. (Respondent)

Section 143(3)Section 144C(5)

…rt in the case of Madras Auto Services P Ltd. (1998) 233 ITR 468 (SC), Bombay High Court judgment in the case of Patel International Films Ltd, 102 ITR 209, Hon'ble Supreme Court in the case of Assam Bengal Cement Co. Ltd. 27 ITR 34 and Alembic Chemical Work, 177 ITR 377. 3. The appellant craves leave to add, amend, vary, omit or substitute any of aforesaid grounds of appeal at any time before or at the time of hearing of appeal. 4. The appellant prays that the direction of DRP, Mumbai on the above directions be set-aside and of the assessing officer be restored. 12. We have heard rival submissions. We find that…

ACIT Cen. Cir. - 25, Mumbai vs. M/S. Parle Products P. Ltd., Mumbai

In the result this ground No

ITA 6964/MUM/2004[1998-1999]Status: DisposedITAT Mumbai13 Sept 2019AY 1998-1999

Bench: Shri R.C. Sharma () & Shri Pawan Singh () - Ay 1998-99 - Ay 2002-03 Ita No. 3891/Mum/2007 - Ay 2003-04 - Ay 2009-10 - Ay 2008-09 - Ay 2007-08 - Ay 2006-07 - Ay 2010-11

Section 14ASection 41(1)

…business to the carried on more efficiently and profitably. Hence on the touchstone of following case laws the assessee deserves to succeed. CIT v. Empire Jute 124 ITR I (SC) CIT v. Assam Bengal Cement 27 ITR 34 ISC) Alembic Chemical Works Co. Ltd. v. CIT 177 ITR 377 (SC) 9. Accordingly we set aside the orders of authorities below and decide the issue in favour of assessee. Hence all the grounds as considered above are decided in favour assessee. The overall decisions of the appeals have to be read in conjunction with the ITAT order passed earlier.” 15. The facts for this assessment year are stated to be ide…

DCIT, New Delhi vs. M/S. Citi Financial Cosumer Finance India Ltd., New Delhi

In the result, appeal filed by Revenue is dismissed

ITA 3118/DEL/2016[2010-11]Status: DisposedITAT Delhi29 Jul 2019AY 2010-11

Bench: Shri H.S. Sidhu & Shri Anadee Nath Misshra

For Appellant: Shri Gaurav Gupta, AdvFor Respondent: Shri S.S. Rana, CIT(DR)

Section 143(3)

…process and need to be expended in order i generate and increase the brand recall and sustain it in the minds of customer Whether or not expenditure is of enduring nature, the Hon'ble Supreme Court in tl case of Alembic Chemical Works Co. Ltd. vs. CIT (1989) 177 ITR 377 has itself observed that "The idea of "once for all" payment and "enduring benefit" are not to be treated something akin to statutory conditions ; nor are the notions of "capital" or "revenue 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 changing econom…

Tata Moters Limited (Formerly Known As Tata Engineering & Locomotive Company Ltd.), Mumbai vs. Dy. CIT, Cir..-2(1), Mumbai

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

ITA 3333/MUM/2011[2003-04]Status: DisposedITAT Mumbai17 Jul 2019AY 2003-04

Bench: Shri M.Balaganesh, Am & Shri Amarjit Singh, Jm M/S. Tata Motors Limited Vs. Dy. Commissioner Of (Formerly Known As Tata Income Tax-2(1), Engineering & Locomotive Aayakar Bhavan Company Limited M.K. Marg, Mumbai – 400 Bombay House, 24 020 Homi Mody Street Hutatma Chowk Mumbai – 400 001 Pan/Gir No.Aaact2727Q (Appellant) .. (Respondent) Dy. Commissioner Of Vs. M/S. Tata Motors Limited Income Tax-2(1), (Formerly Known As Tata Aayakar Bhavan Engineering & Locomotive M.K. Marg, Mumbai – Company Limited 400 020 Bombay House, 24 Homi Mody Street Hutatma Chowk Mumbai – 400 001 Pan/Gir No.Aaact2727Q (Appellant) .. (Respondent)

Section 143(3)Section 43B

…se of CIT v . Graphite India Ltd. [1996] 221 M/s. Tata Motors Limited ITR 420 and decision of the Hon'ble Supreme Court in the case of Jonas Woodhead & Sons (India) Ltd. v. CIT [1997] 224 ITR 342/ 91 Taxman 1 and Allembic Chemical Works Co. Ltd. v. CIT [1989] 177 ITR 377/ 43 Taxman 312 (SC) and held that in view of the ratio of above judgements, if the expenditure is incurred for acquisition of an asset which gives or renders enduring benefit to the assessee, naturally it is to be considered as capital expenditure otherwise revenue expenditure. 16. Substantially this is also a question of fact where an expenditur…

DCIT, C-5, Ludhiana vs. M/S Satyam Auto Components Ltd., Ludhiana

In the result, both the appeals of the Revenue are hereby

ITA 589/CHANDI/2018[2012-13]Status: DisposedITAT Chandigarh10 Jul 2019AY 2012-13

Bench: Shri N.K. Saini & Shrisanjay Gargआयकरअपीलसं./Ita No. 1500/Chd/2017 "नधा"रणवष" / Assessment Year : 2011-12 The Dcit, Circle-5, Vs. M/S Satyam Auto Components Ludhiana Pvt Ltd., G.T.Road, Hero बनाम Nagar, Ludhiana

For Appellant: Sh. Manjit Singh, CIT DRFor Respondent: Sh. Subhash Aggarwal, Advocate

Section 36

…e company relied upon the decision of the Honorable Apex Court in the case of CIT Vs. Associated Cements Companies Limited 172 ITR 257(SC). Apart from this, reliance has also been made on the following decisions:- (i). Alembic Chemical Works Co. Ltd. Vs. CIT 177 ITR 377 (SC) (ii). CIT Vs. Southern Roadways Limited 304 ITR 88 (Mad)(HC) It has again been submitted that the expenditure incurred is of revenue in nature as against treated by the Assessing Officer as capital expenditure. On this preposition, the learned AR of the assessee company relied upon the following judicial pronouncements:- (a) Hindustan Alum…

DCIT, C-5, Ludhiana vs. M/S Satyam Auto Components Ltd., Ludhiana

In the result, both the appeals of the Revenue are hereby

ITA 1500/CHANDI/2017[2011-12]Status: DisposedITAT Chandigarh10 Jul 2019AY 2011-12

For Appellant: Sh. Manjit Singh, CIT DRFor Respondent: Sh. Subhash Aggarwal, Advocate

Section 36

ITO, New Delhi vs. M/S. Citi Financial Cosumer Finance India Ltd., New Delhi

ITA 2638/DEL/2016[2009-10]Status: DisposedITAT Delhi23 May 2019AY 2009-10

Bench: Shri N.K. Billaiya & Shri Kuldip Singhito, Ward 6 (2), Vs. M/S. Citi Financial Consumer Finance New Delhi. India Ltd., 3, Local Shopping Centre, Pushpa Bhawan, Pushp Vihar, New Delhi – 110 062. (Pan : Aabca3223B) (Appellant) (Respondent) Assessee By : Shri C.S. Agarwal, Senior Advocate Shri Shailesh Gupta, Advocate Revenue By : Shri H.K. Choudhary, Cit Dr Date Of Hearing : 02.05.2019 Date Of Order : 23.05.2019

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri H.K. Choudhary, CIT DR

Section 143Section 92C

…cess 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. vs. 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 changing…

Piramal Healthcare Ltd, Mumbai vs. DCIT 7(1), Mumbai

The appeal of the revenue is partly allowed for statistical purposes in terms of our aforesaid observations

ITA 1257/MUM/2014[2009-10]Status: DisposedITAT Mumbai07 May 2019AY 2009-10

Bench: Shri G.S.Pannu & Shri Ravish Soodpiramal Healthcare Limited Deputy Commissioner Of Income (Now Known As Piramal Enterprises Ltd.) Tax- 7(1) Piramal Tower, Room No. 622, Aayakar Bhavan, Ganpatrao Kadam Marg, Vs. M.K. Road Lower Parel, Mumbai- 400 020 Mumbai – 400 013

For Appellant: Sh. J.D, Mistry, Senior Advocate &For Respondent: S/sh. Bhupendra Kumar Singh &

Section 143(3)Section 35

…uction u/s 35A; and (ii). Alternatively, that if the claim of deduction u/s 35A was not allowable, still the deduction has to be allowed u/s 37 of the I-T Act in view of the judgment of the Hon‟ble Apex Court in Alembic Chemicals Works Co. Ltd. Vs. CIT (1988) 177 ITR 377 (SC). It was observed by the Tribunal that the revenue in its aforesaid appeal before the Hon‟ble Jurisdictional High Court in the case of “SPPL” for A.Y 1998-99, being conscious of the fact that if it succeeded on the ground of entitlement of the assessee towards deduction u/s 35A on the trade marks, then the deduction of the entire expenditure…

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

Appeal of the assessee is partly allowed for statistical purpose

ITA 1351/DEL/2018[2009-10]Status: DisposedITAT Delhi23 Apr 2019AY 2009-10

Bench: Shri N. K. Billaiya & Ms Suchitra Kamble

For Appellant: Amount of Proposed international

Section 115JSection 143(3)Section 144C

…tor as opposed to acquisition of ownership rights therein, the payment made would be regarded as revenue expenditure. • As CIT v. Ciba India Ltd.: 69 ITR 692 (SC) • CIT vs. British India Corp. Ltd. [1987] 165 ITR 51 • Alembic Chemical Works Co. Ltd. Vs. CIT: 177 ITR 377 (S.C) • Shriram Refrigeration Industries Ltd. Vs. CIT: 127 ITR 746 (Del H.C) • Triveni Engineering Works Ltd. Vs. CIT(A): 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. v…

ACIT, Moradabad vs. M/S. Jubilant Organosyes Ltd., Uttar Pradesh

The appeal is dismissed

ITA 4975/DEL/2012[2008-09]Status: DisposedITAT Delhi12 Mar 2019AY 2008-09

Bench: Smt Beena A. Pillai & Shri Prashant Maharishi

For Appellant: Shri R.M. Gupta, AdvFor Respondent: Shri J. K. Mishra, CIT DR

Section 115JSection 43(1)

…dia Safety Glass Ltd.[(2012) 346 ITR 329 (Delhi)] (Refer para 9, 10), Sumitomo Corpn. India (P.) Ltd. v. Addl. CIT [2005] 1 SOT 91 (Delhi), Para 8, Bank of Punjab Ltd. v. Jt. CIT[2002] 122 Taxman 235 (Chd.) (Mag.) ,Alembic Chemical Works Co. Ltd. v. CIT[1989] 177 ITR 377 (SC), ,Arch Finance Ltd. vs. ACIT[(2007) 165 Taxman 188 (Delhi)(MAG.)], Business Information Processing Services vs. ACIT [(2000) 73 ITD 304(Jaipur)] and ITC Classic finance Ltd. vs. DCIT [(2000) 112 Taxman 155 Mag (Cal)] Glaxo Smithkline Consumer Healthcare Ltd. Vs. ACIT [(2007) 112 TTJ 94 (Chd)], Para 44. 23. Fact shows that assessee has incurr…

ACIT, Moradabad vs. M/S Jubliant Organosys Ltd., Uttar Pradesh

The appeal is dismissed

ITA 2596/DEL/2011[2007-08]Status: DisposedITAT Delhi12 Mar 2019AY 2007-08

Bench: Smt Beena A. Pillai & Shri Prashant Maharishi

For Appellant: Shri R.M. Gupta, AdvFor Respondent: Shri J. K. Mishra, CIT DR

Section 115JSection 43(1)

Jubilant Organosys Ltd., Noida vs. Addl. CIT, Moradabad

The appeal is dismissed

ITA 2497/DEL/2011[2007-08]Status: DisposedITAT Delhi12 Mar 2019AY 2007-08

Bench: Smt Beena A. Pillai & Shri Prashant Maharishi

For Appellant: Shri R.M. Gupta, AdvFor Respondent: Shri J. K. Mishra, CIT DR

Section 115JSection 43(1)

The Dy. CIT., Circle-4, Ahmedabad vs. Hazira Port Pvt.Ltd., Ahmedabad

In the result, the appeal is dismissed

ITA 1196/AHD/2014[2009-10]Status: DisposedITAT Ahmedabad04 Mar 2019AY 2009-10

Bench: The Cit(A). It Was

Section 143(3)

…v. Coromandal Fertilizers [2001] 247 ITR 417 (AP) following the decision of the Supreme Court in Empire Jute Co. Ltd. v. CIT [1980] 124 ITR 1 (SC). "Once for all" payment test is inconclusive as was pointed out in Alembic Chemical Works Co. Ltd. v. CIT [1989] 177 ITR 377 (SC). Extension of assessee's business could not be treated as an activity, which will disentitle the expenditure for the purpose as was held in Kesoram Industries & Cotton Mills Ltd. v. CIT [1992] 196 ITR 845 (Cal.). It is under these circumstances expenditure incurred on CPSU amounting to Rs.42.53 lakhs by the appellant company may be treated a…

Stellar Chemical Laboratories P.Ltd, Mumbai vs. DCIT Cir 5(3), Mumbai

In the result, the appeal is allowed

ITA 2014/MUM/2017[2010-11]Status: DisposedITAT Mumbai25 Feb 2019AY 2010-11

Bench: Shri Pawan Singh () & Shri N.K. Pradhan () Assessment Year: 2010-11 M/S Stellar Chemical Dy. Comm. Of Income Tax Laboratories Pvt. Ltd. Vs. Circle-5(3), Aayakarbhavan, 501, Arun Chambers, M.K. Road, Mumbai-400020. Tardeo Road, Mumbai- 400034. Pan No. Aaccs0823J Appellant Respondent Assessee By : Mr. Hitesh P. Shah, Ar Revenue By : Mr. Chaudhary Arun Kumar Singh, Dr Date Of Hearing : 29/11/2018 Date Of Pronouncement: 25/02/2019

For Appellant: Mr. Hitesh P. Shah, ARFor Respondent: Mr. Chaudhary Arun Kumar Singh, DR

Section 143(3)

…defence department. The drawings are likely to lose their usefulness after the contract with the defence department was performed. The Madras High Court held the cost of drawings to be revenue expenditure. Similarly, in Alembic Chemical Works Co. Ltd. v. CIT 177 ITR 377 (SC), a lump sum consideration paid for technical knowhow to achieve higher levels of production by better technology was held by the Hon’ble Supreme Court to be on revenue account. In these cases, the Court rightly understood the needs of business in this age of rapidly advancing technology and rejected the department’s claim that the expenditur…

DCIT, New Delhi vs. M/S. Metso Minerals (India) Pvt. Ltd., New Delhi

In the result, the appeal is dismissed

ITA 6681/DEL/2014[2010-11]Status: DisposedITAT Delhi18 Jan 2019AY 2010-11

Bench: : Shri Amit Shukla & Shri L.P. Sahu

Section 143(2)Section 14ASection 36(1)(iii)

…ital, regard must be had to rapid strides in science and technology. The revenue has to take into consideration the need for updating the plants in view of further development and advancement of science and technology. Alembic Chemical Works Co. Ltd. vs CIT (177 ITR 377)(SC) CIT vs Co-op. Sugars Ltd. (1999) 235 ITR 343 (Ker) l) The test of an improvement or an advantage of enduring nature is not conclusive. The object of every repair is to improve the condition or the efficiency of the asset. Empire Jute Co. Ltd. vs CIT (1980) 124 ITR 01 (SC). CIT vs Mahalaxmi Textile Mills Ltd. (1967) 66 ITR 710 (SC) 13 m) Ex…

Maruti Suzuki India Ltd., New Delhi vs. Addl. CIT, New Delhi

Appeal of the assessee is partly allowed for statistical purpose

ITA 467/DEL/2014[2009-10]Status: DisposedITAT Delhi17 Oct 2018AY 2009-10

Bench: Shri R. K. Panda & Ms Suchitra Kamblei.T.A .No. 467/Del/2014 (A.Y 2009-10)

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

…btaining access to information and restricted license to the limited use of know-how, should be treated as revenue expenditure. The Ld. AR relied upon the following decisions: • CIT v. Ciba India Ltd: 69 ITR 692 (SC) • Alembic Chemical Works Co. Ltd. v. CIT: 177 ITR 377 (SC) CIT v. Shriram Pistons and Rings Limited -CC 12154/2009 (SC) • (dismissing the SLP filed by the revenue against the order of the Delhi High Court in ITA No. 167/2008) • Shriram Refrigeration Industries Ltd. v. CIT: 127 ITR 746(Del) • Triveni Engineering Works Ltd. v. CIT 136: ITR 340 (Del) CIT v. Sharda Motor Industrial Limited: 319 ITR 109…

Glaxosmithkline Asia (P) Ltd., Gurgaon vs. ACIT, Chandigarh

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

ITA 1323/CHANDI/2012[2003-04]Status: DisposedITAT Chandigarh28 Sept 2018AY 2003-04

For Appellant: Sh. Neeraj Jain (C.A), Sh. Abhishek Mukherjee (C.A)For Respondent: Dr. Gulshan Raj

Section 143(3)

…dure for an indefinite future ..... " The ratio decidendi laid down in the aforesaid judgement has been reiterated by the Supreme Court in CIT vs. Associated Cement Companies Ltd. : 172 ITR 257 and again in the case of Alembic Chemical Works Co. Ltd. v. CIT: 177 ITR 377. It is respectfully submitted, therefore, that the loss on account of stock write off was essentially on trading account and did not result in either an enduring benefit in the capital field or creation of capital asset and are, therefore, to be held as allowable revenue deduction. In the case of J.K. Cotton Manufactures Ltd. vs. CIT (Supra) rel…

Daimler Chrysler India Pvt. Ltd., Pune vs. Deputy Commissioner of Income-Tax, Pune

In the result, the cross objection of the assessee is dismissed

ITA 1381/PUN/2003[1998-99]Status: DisposedITAT Pune08 Aug 2018AY 1998-99

Bench: Shri D.Karunakara Rao, Am & Shri Vikas Awasthy, Jm आयकर आयकर अपील आयकर आयकर अपील अपील संसंसंसं. / Ita No.1381/Pun/2003 अपील िनधा"रण िनधा"रण वष" िनधा"रण िनधा"रण वष" वष" / Assessment Year : 1998-09 वष"

For Appellant: Shri Pramod AchuthanFor Respondent: Shri Rajeev Kumar, CIT

Section 143(3)Section 15ASection 35A

…treated as a capital expenditure. In Fancy Corpn. Ltd. Vs. CIT 162 ITR 827 (Bom.) it was held that the mere fact that attempt to acquire capital asset failed, would not change the capital nature of the expenditure. The decision in Alembic Chemical Works Ltd. 177 ITR 377 (SC) relied upon by the Appellant’s Representative is not applicable to the facts of the case. In that case the decision was in regard to the improvisation in the process and technology which was supplemented to the existing business. In the case of the appellant it is a direct expenses for acquiring new capital asset. In 196 ITR 845 (Cal.) the e…

Deputy Commissioner of Income-Tax vs. Daimler Chrysler India Pvt. Ltd., Pune

In the result, the cross objection of the assessee is dismissed

ITA 1325/PUN/2003[1998-99]Status: DisposedITAT Pune08 Aug 2018AY 1998-99

For Appellant: Shri Pramod AchuthanFor Respondent: Shri Rajeev Kumar, CIT

Section 143(3)Section 15ASection 35A