Alembic Chemical Works (supra), Commissioner of Income Tax v. Madras Auto Services (supra) and CIT vs. HMT Limited

203 ITR 820High Court1993#2078 most cited

What is Alembic Chemical Works (supra), Commissioner of Income Tax v. Madras Auto Services (supra) and CIT vs. HMT Limited authority for?

Expenditure incurred for the elimination of business competition, such as non-compete fees, is classified as either revenue or capital expenditure based on whether it creates an enduring benefit for the assessee's business.

55

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2012 to 2021.

Also referred to as

CIT vs. HMT Limited · 203 ITR 820 · elimination of competition · non-compete fee · revenue expenditure · capital expenditure · enduring benefit test · business deduction · Section 10(2)(xv) · Section 40A(2) · relinquishment of right

Issues it is cited on

relinquishment of righttest of enduring benefitsection 10(2)(xv)business transfer agreementnon-compete feesection 2(31)slump salesection 51going concernsection 40a(2)(b)section 40a(2)enduring benefit

Judgments citing Alembic Chemical Works (supra), Commissioner of Income Tax v. Madras Auto Services (supra) and CIT vs. HMT Limited

Shanker Trading (P) Ltd vs. The CIT

The appeals stand disposed of

ITA/1183/2010HC Delhi09 Jul 2012
For Appellant: Mr Ajay Vohra and Ms Kavita JhaFor Respondent: Mr Sanjeev Sabharwal and Ms Suruchi Aggarwal
Section 201

…purchase of katha and Cutch in a specified radius. In support of his contention, the learned counsel for the assessee placed reliance upon Alembic Chemical Works (supra), Commissioner of Income Tax v. Madras Auto Services (supra) and CIT vs. HMT Limited, 203 ITR 820(Kar). However, the facts of the case before us are quite different. As noted earlier, considering the common control of the Trust and the assessee-company, coupled with the fact that the lease had lasted for about 22 years in all, and for more than 08 years after its last renewal. Hence, in the facts and circumstances of the case, that par…

Shanker Trading (P) Ltd vs. The CIT

The appeals stand disposed of

ITA/842/2011HC Delhi09 Jul 2012
For Appellant: Mr Ajay Vohra and Ms Kavita JhaFor Respondent: Mr Sanjeev Sabharwal and Ms Suruchi Aggarwal
Section 201

…purchase of katha and Cutch in a specified radius. In support of his contention, the learned counsel for the assessee placed reliance upon Alembic Chemical Works (supra), Commissioner of Income Tax v. Madras Auto Services (supra) and CIT vs. HMT Limited, 203 ITR 820(Kar). However, the facts of the case before us are quite different. As noted earlier, considering the common control of the Trust and the assessee-company, coupled with the fact that the lease had lasted for about 22 years in all, and for more than 08 years after its last renewal. Hence, in the facts and circumstances of the case, that par…

Shanker Trading (P) Ltd vs. The CIT

The appeals stand disposed of

ITA/45/2005HC Delhi09 Jul 2012
For Appellant: Mr Ajay Vohra and Ms Kavita JhaFor Respondent: Mr Sanjeev Sabharwal and Ms Suruchi Aggarwal
Section 201

…purchase of katha and Cutch in a specified radius. In support of his contention, the learned counsel for the assessee placed reliance upon Alembic Chemical Works (supra), Commissioner of Income Tax v. Madras Auto Services (supra) and CIT vs. HMT Limited, 203 ITR 820(Kar). However, the facts of the case before us are quite different. As noted earlier, considering the common control of the Trust and the assessee-company, coupled with the fact that the lease had lasted for about 22 years in all, and for more than 08 years after its last renewal. Hence, in the facts and circumstances of the case, that par…

Shanker Trading (P) Ltd vs. The CIT

The appeals stand disposed of

ITA/50/2005HC Delhi09 Jul 2012
For Appellant: Mr Ajay Vohra and Ms Kavita JhaFor Respondent: Mr Sanjeev Sabharwal and Ms Suruchi Aggarwal
Section 201

…purchase of katha and Cutch in a specified radius. In support of his contention, the learned counsel for the assessee placed reliance upon Alembic Chemical Works (supra), Commissioner of Income Tax v. Madras Auto Services (supra) and CIT vs. HMT Limited, 203 ITR 820(Kar). However, the facts of the case before us are quite different. As noted earlier, considering the common control of the Trust and the assessee-company, coupled with the fact that the lease had lasted for about 22 years in all, and for more than 08 years after its last renewal. Hence, in the facts and circumstances of the case, that par…

Shanker Trading (P) Ltd vs. The CIT

The appeals stand disposed of

ITA/1207/2005HC Delhi09 Jul 2012
For Appellant: Mr Ajay Vohra and Ms Kavita JhaFor Respondent: Mr Sanjeev Sabharwal and Ms Suruchi Aggarwal
Section 201

…purchase of katha and Cutch in a specified radius. In support of his contention, the learned counsel for the assessee placed reliance upon Alembic Chemical Works (supra), Commissioner of Income Tax v. Madras Auto Services (supra) and CIT vs. HMT Limited, 203 ITR 820(Kar). However, the facts of the case before us are quite different. As noted earlier, considering the common control of the Trust and the assessee-company, coupled with the fact that the lease had lasted for about 22 years in all, and for more than 08 years after its last renewal. Hence, in the facts and circumstances of the case, that par…

Shanker Trading (P) Ltd vs. The CIT

The appeals stand disposed of

ITA/257/2007HC Delhi09 Jul 2012
For Appellant: Mr Ajay Vohra and Ms Kavita JhaFor Respondent: Mr Sanjeev Sabharwal and Ms Suruchi Aggarwal
Section 201

…purchase of katha and Cutch in a specified radius. In support of his contention, the learned counsel for the assessee placed reliance upon Alembic Chemical Works (supra), Commissioner of Income Tax v. Madras Auto Services (supra) and CIT vs. HMT Limited, 203 ITR 820(Kar). However, the facts of the case before us are quite different. As noted earlier, considering the common control of the Trust and the assessee-company, coupled with the fact that the lease had lasted for about 22 years in all, and for more than 08 years after its last renewal. Hence, in the facts and circumstances of the case, that par…

Shanker Trading (P) Ltd vs. The CIT

The appeals stand disposed of

ITA/247/2002HC Delhi09 Jul 2012
For Appellant: Mr Ajay Vohra and Ms Kavita JhaFor Respondent: Mr Sanjeev Sabharwal and Ms Suruchi Aggarwal
Section 201

…purchase of katha and Cutch in a specified radius. In support of his contention, the learned counsel for the assessee placed reliance upon Alembic Chemical Works (supra), Commissioner of Income Tax v. Madras Auto Services (supra) and CIT vs. HMT Limited, 203 ITR 820(Kar). However, the facts of the case before us are quite different. As noted earlier, considering the common control of the Trust and the assessee-company, coupled with the fact that the lease had lasted for about 22 years in all, and for more than 08 years after its last renewal. Hence, in the facts and circumstances of the case, that par…

Shanker Trading (P) Ltd vs. The CIT

The appeals stand disposed of

ITA/253/2007HC Delhi09 Jul 2012
For Appellant: Mr Ajay Vohra and Ms Kavita JhaFor Respondent: Mr Sanjeev Sabharwal and Ms Suruchi Aggarwal
Section 201

…purchase of katha and Cutch in a specified radius. In support of his contention, the learned counsel for the assessee placed reliance upon Alembic Chemical Works (supra), Commissioner of Income Tax v. Madras Auto Services (supra) and CIT vs. HMT Limited, 203 ITR 820(Kar). However, the facts of the case before us are quite different. As noted earlier, considering the common control of the Trust and the assessee-company, coupled with the fact that the lease had lasted for about 22 years in all, and for more than 08 years after its last renewal. Hence, in the facts and circumstances of the case, that par…

Shanker Trading (P) Ltd vs. The CIT

The appeals stand disposed of

ITA/251/2007HC Delhi09 Jul 2012
For Appellant: Mr Ajay Vohra and Ms Kavita JhaFor Respondent: Mr Sanjeev Sabharwal and Ms Suruchi Aggarwal
Section 201

…purchase of katha and Cutch in a specified radius. In support of his contention, the learned counsel for the assessee placed reliance upon Alembic Chemical Works (supra), Commissioner of Income Tax v. Madras Auto Services (supra) and CIT vs. HMT Limited, 203 ITR 820(Kar). However, the facts of the case before us are quite different. As noted earlier, considering the common control of the Trust and the assessee-company, coupled with the fact that the lease had lasted for about 22 years in all, and for more than 08 years after its last renewal. Hence, in the facts and circumstances of the case, that par…

Shanker Trading (P) Ltd vs. The CIT

The appeals stand disposed of

ITA/361/2008HC Delhi09 Jul 2012
For Appellant: Mr Ajay Vohra and Ms Kavita JhaFor Respondent: Mr Sanjeev Sabharwal and Ms Suruchi Aggarwal
Section 201

…purchase of katha and Cutch in a specified radius. In support of his contention, the learned counsel for the assessee placed reliance upon Alembic Chemical Works (supra), Commissioner of Income Tax v. Madras Auto Services (supra) and CIT vs. HMT Limited, 203 ITR 820(Kar). However, the facts of the case before us are quite different. As noted earlier, considering the common control of the Trust and the assessee-company, coupled with the fact that the lease had lasted for about 22 years in all, and for more than 08 years after its last renewal. Hence, in the facts and circumstances of the case, that par…

Shanker Trading (P) Ltd vs. The CIT

The appeals stand disposed of

ITA/223/2002HC Delhi09 Jul 2012
For Appellant: Mr Ajay Vohra and Ms Kavita JhaFor Respondent: Mr Sanjeev Sabharwal and Ms Suruchi Aggarwal
Section 201

…purchase of katha and Cutch in a specified radius. In support of his contention, the learned counsel for the assessee placed reliance upon Alembic Chemical Works (supra), Commissioner of Income Tax v. Madras Auto Services (supra) and CIT vs. HMT Limited, 203 ITR 820(Kar). However, the facts of the case before us are quite different. As noted earlier, considering the common control of the Trust and the assessee-company, coupled with the fact that the lease had lasted for about 22 years in all, and for more than 08 years after its last renewal. Hence, in the facts and circumstances of the case, that par…

Shanker Trading (P) Ltd vs. The CIT

The appeals stand disposed of

ITA/246/2005HC Delhi09 Jul 2012
For Appellant: Mr Ajay Vohra and Ms Kavita JhaFor Respondent: Mr Sanjeev Sabharwal and Ms Suruchi Aggarwal
Section 201

…purchase of katha and Cutch in a specified radius. In support of his contention, the learned counsel for the assessee placed reliance upon Alembic Chemical Works (supra), Commissioner of Income Tax v. Madras Auto Services (supra) and CIT vs. HMT Limited, 203 ITR 820(Kar). However, the facts of the case before us are quite different. As noted earlier, considering the common control of the Trust and the assessee-company, coupled with the fact that the lease had lasted for about 22 years in all, and for more than 08 years after its last renewal. Hence, in the facts and circumstances of the case, that par…

Shanker Trading (P) Ltd vs. The CIT

The appeals stand disposed of

ITA/53/2000HC Delhi09 Jul 2012
For Appellant: Mr Ajay Vohra and Ms Kavita JhaFor Respondent: Mr Sanjeev Sabharwal and Ms Suruchi Aggarwal
Section 201

…purchase of katha and Cutch in a specified radius. In support of his contention, the learned counsel for the assessee placed reliance upon Alembic Chemical Works (supra), Commissioner of Income Tax v. Madras Auto Services (supra) and CIT vs. HMT Limited, 203 ITR 820(Kar). However, the facts of the case before us are quite different. As noted earlier, considering the common control of the Trust and the assessee-company, coupled with the fact that the lease had lasted for about 22 years in all, and for more than 08 years after its last renewal. Hence, in the facts and circumstances of the case, that par…

Shanker Trading (P) Ltd vs. The CIT

The appeals stand disposed of

ITA/1191/2008HC Delhi09 Jul 2012
For Appellant: Mr Ajay Vohra and Ms Kavita JhaFor Respondent: Mr Sanjeev Sabharwal and Ms Suruchi Aggarwal
Section 201

…purchase of katha and Cutch in a specified radius. In support of his contention, the learned counsel for the assessee placed reliance upon Alembic Chemical Works (supra), Commissioner of Income Tax v. Madras Auto Services (supra) and CIT vs. HMT Limited, 203 ITR 820(Kar). However, the facts of the case before us are quite different. As noted earlier, considering the common control of the Trust and the assessee-company, coupled with the fact that the lease had lasted for about 22 years in all, and for more than 08 years after its last renewal. Hence, in the facts and circumstances of the case, that par…

Shanker Trading (P) Ltd vs. The CIT

The appeals stand disposed of

ITA/482/2008HC Delhi09 Jul 2012
For Appellant: Mr Ajay Vohra and Ms Kavita JhaFor Respondent: Mr Sanjeev Sabharwal and Ms Suruchi Aggarwal
Section 201

…purchase of katha and Cutch in a specified radius. In support of his contention, the learned counsel for the assessee placed reliance upon Alembic Chemical Works (supra), Commissioner of Income Tax v. Madras Auto Services (supra) and CIT vs. HMT Limited, 203 ITR 820(Kar). However, the facts of the case before us are quite different. As noted earlier, considering the common control of the Trust and the assessee-company, coupled with the fact that the lease had lasted for about 22 years in all, and for more than 08 years after its last renewal. Hence, in the facts and circumstances of the case, that par…