Amway India Enterprises v. DCIT

M/S. Bajaj Auto Ltd., Mumbai vs. Addl. CIT. RG. - 3(1), Mumbai

…ourse of appellate proceedings before us at the outset the Id. Counsel submitted that software expenses are allowable as revenue expenditure u/s 37(1) of the Act. She also submitted that the decision of the Special Bench in the case of Amway India Enterprises 111 ITD 112 relied upon by the Id. CIT(A) was reversed by the Hon'ble Delhi High Court in the case of Amway India Enterprises (2012) 22 taxmann.com 22 (Delhi). The Id. counsel has also referred the decision of Asahi Safety Glass Ltd. vs. CIT (2011) 15 taxmann.com 382 (Delhi). The Id. Counsel also referred page no. 142-144 of the factual paper book and submit…

Assistant Commissioner of Income Tax- Circle 4(2)(1), Mumbai vs. First Advantage Private Limited, Mumbai

In the result, the appeal by the Revenue is dismissed

Bench: Shri B.R. Baskaran & Shri Sandeep Singh Karhail

…oducts to be revenue in nature. The relevant findings of the coordinate bench, in the aforesaid decision, are reproduced as follows:- "8. In keeping with the tests as laid down by the Special Bench of the ITAT, in the case of CIT vs. Amway India Enterprises, 111 ITD 112[SB] (Delhi), three tests have to be met in order to pass the expenditure incurred on account of software expenses as capital, or otherwise. These are the ownership test, the enduring benefit test and the functionality test. In the present case, as rightly considered by the ld. CIT(A), none of these tests fails the claim of the assessee. The softw…

Bajaj Holdngs & Investment Ltd ( Erstwhile Bajaj Auto Ltd), Mumbai vs. Addl CIT RG 3(1), Mumbai

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

Bench: Shri Vikas Awasthy & Shri Amarjit Singhbajaj Holdings & Vs. Additional Commissioner Investment Ltd. Of Income-Tax, Range 3(1) Erstwile Bajaj Auto Ltd.) Aayakar Bhavan, Bajaj Bhavan, 226, M.K. Road, Nariman Point, Mumbai – 400 020 Mumbai – 400 021 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aaacb3370K Appellant .. Respondent Dcit-3(4) Vs. M/S Bajaj Holding & Room No. 481-2, 4Th Floor, Investment Limited Aaykar Bhavan, (Erstwhile Bajaj Auto Ltd) Mumbai – 400020 226, Bajaj Bhavan, 2Nd Floor, Jamnalal Bajaj Marg, Nariman Point Mumbai – 400 021 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aaacb3370K Appellant .. Respondent Appellant By : Percy Pardiwala & Vasanti Patel Respondent By : Ankush Kapoor

…P a g e | 1 ITA No.3043 & 2899/Mum/2010 Bajaj Holdings & Investments Ltd. Vs. ACIT, Range 3(1) IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER Bajaj Holdings & Vs. Additional Commissioner Investment Ltd. of Income-tax, Range 3(1) Erstwile Bajaj Auto Ltd.) Aayakar Bhavan, Bajaj Bhavan, 226, M.K. Road, Nariman Point, Mumbai – 400 020 Mumbai – 400 021 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No:AAACB3370K Appellant .. Respondent DCIT-3(4) Vs. M/s Bajaj Holding and Room No. 481-2, 4th Floor, Investment Limited Aaykar Bhavan, (Ers…

Addl CIT RG 3(1), Mumbai vs. Bajaj Auto Ltd, Mumbai

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

Bench: Shri Vikas Awasthy & Shri Amarjit Singhbajaj Holdings & Vs. Additional Commissioner Investment Ltd. Of Income-Tax, Range 3(1) Erstwile Bajaj Auto Ltd.) Aayakar Bhavan, Bajaj Bhavan, 226, M.K. Road, Nariman Point, Mumbai – 400 020 Mumbai – 400 021 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aaacb3370K Appellant .. Respondent Dcit-3(4) Vs. M/S Bajaj Holding & Room No. 481-2, 4Th Floor, Investment Limited Aaykar Bhavan, (Erstwhile Bajaj Auto Ltd) Mumbai – 400020 226, Bajaj Bhavan, 2Nd Floor, Jamnalal Bajaj Marg, Nariman Point Mumbai – 400 021 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aaacb3370K Appellant .. Respondent Appellant By : Percy Pardiwala & Vasanti Patel Respondent By : Ankush Kapoor

…P a g e | 1 ITA No.3043 & 2899/Mum/2010 Bajaj Holdings & Investments Ltd. Vs. ACIT, Range 3(1) IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER Bajaj Holdings & Vs. Additional Commissioner Investment Ltd. of Income-tax, Range 3(1) Erstwile Bajaj Auto Ltd.) Aayakar Bhavan, Bajaj Bhavan, 226, M.K. Road, Nariman Point, Mumbai – 400 020 Mumbai – 400 021 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No:AAACB3370K Appellant .. Respondent DCIT-3(4) Vs. M/s Bajaj Holding and Room No. 481-2, 4th Floor, Investment Limited Aaykar Bhavan, (Ers…

DCIT RG. - 6(3), Mumbai vs. M/S. Kansai Nerolac Paints Ltd., Mumbai

Accordingly we see no infirmity in the decision of CIT(A) and uphold the decision of the CIT(A). This ground of the revenue is dismissed

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

…tware. Further with regard to 7 Kansai Nerolac Paints Limited I.T.A. No.3384&3385/Mum/2014 I.T.A. No.3642/Mum/2016 and I.T.A. No.4562&4607/Mum/2017 license fee we notice that the Special Bench of the Tribunal in the case of Amway India Enterprises vs Dy.CIT (111 ITD 112) which has been affirmed by the Hon’ble Delhi High Court, where the Hon’ble Special Bench has described the concept of benefit of enduring nature as under:- “"Whether expenditure on computer software gives on enduring benefit to an assessee: For ascertaining as to whether expenditure on computer software gives an enduring benefit, to an assessee…

M/S. Kansai Nerolac Paints Ltd., Mumbai vs. DCIT RG. - 6(3), Mumbai

Accordingly we see no infirmity in the decision of CIT(A) and uphold the decision of the CIT(A). This ground of the revenue is dismissed

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

…tware. Further with regard to 7 Kansai Nerolac Paints Limited I.T.A. No.3384&3385/Mum/2014 I.T.A. No.3642/Mum/2016 and I.T.A. No.4562&4607/Mum/2017 license fee we notice that the Special Bench of the Tribunal in the case of Amway India Enterprises vs Dy.CIT (111 ITD 112) which has been affirmed by the Hon’ble Delhi High Court, where the Hon’ble Special Bench has described the concept of benefit of enduring nature as under:- “"Whether expenditure on computer software gives on enduring benefit to an assessee: For ascertaining as to whether expenditure on computer software gives an enduring benefit, to an assessee…

Kansai Nerolac Paints Ltd, Mumbai vs. DCIT RG 6(2), Mumbai

Accordingly we see no infirmity in the decision of CIT(A) and uphold the decision of the CIT(A). This ground of the revenue is dismissed

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

…tware. Further with regard to 7 Kansai Nerolac Paints Limited I.T.A. No.3384&3385/Mum/2014 I.T.A. No.3642/Mum/2016 and I.T.A. No.4562&4607/Mum/2017 license fee we notice that the Special Bench of the Tribunal in the case of Amway India Enterprises vs Dy.CIT (111 ITD 112) which has been affirmed by the Hon’ble Delhi High Court, where the Hon’ble Special Bench has described the concept of benefit of enduring nature as under:- “"Whether expenditure on computer software gives on enduring benefit to an assessee: For ascertaining as to whether expenditure on computer software gives an enduring benefit, to an assessee…

Kansai Nerolac Paints Limited (Erstwhile Known As Goodlass Nerolac Paints Limited), Mumbai vs. Addl. CIT, Range 6 (2), Mumbai

Accordingly we see no infirmity in the decision of CIT(A) and uphold the decision of the CIT(A). This ground of the revenue is dismissed

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

…tware. Further with regard to 7 Kansai Nerolac Paints Limited I.T.A. No.3384&3385/Mum/2014 I.T.A. No.3642/Mum/2016 and I.T.A. No.4562&4607/Mum/2017 license fee we notice that the Special Bench of the Tribunal in the case of Amway India Enterprises vs Dy.CIT (111 ITD 112) which has been affirmed by the Hon’ble Delhi High Court, where the Hon’ble Special Bench has described the concept of benefit of enduring nature as under:- “"Whether expenditure on computer software gives on enduring benefit to an assessee: For ascertaining as to whether expenditure on computer software gives an enduring benefit, to an assessee…

Kansai Nerolac Paints Limited (Erstwhile Known As Goodlass Nerolac Paints Limited), Mumbai vs. Addl CIT, Range 6 (2), Mumbai

Accordingly we see no infirmity in the decision of CIT(A) and uphold the decision of the CIT(A). This ground of the revenue is dismissed

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

…tware. Further with regard to 7 Kansai Nerolac Paints Limited I.T.A. No.3384&3385/Mum/2014 I.T.A. No.3642/Mum/2016 and I.T.A. No.4562&4607/Mum/2017 license fee we notice that the Special Bench of the Tribunal in the case of Amway India Enterprises vs Dy.CIT (111 ITD 112) which has been affirmed by the Hon’ble Delhi High Court, where the Hon’ble Special Bench has described the concept of benefit of enduring nature as under:- “"Whether expenditure on computer software gives on enduring benefit to an assessee: For ascertaining as to whether expenditure on computer software gives an enduring benefit, to an assessee…

ACIT- Circle-4(2)(1), Mumbai vs. First Advantage Private Limited, Mumbai

In the result, the appeal of the revenue is dismissed

Bench: Shri Amit Shukla & Shri Amarjit Singhacit, Circle 4(2)(1) Vs. First Advantage Private Room No. 640/642, 6Th Limited, First Floor, Floor, Aayakar Bhavan, Interface Building No.7, M.K. Road, Link Road, Malad (West) Mumbai – 40 Mumbai – 400064 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaacq0706E Appellant .. Respondent [ Appellant By : Ms. Zeenia Handa Respondent By : Nitesh Joshi & Sunil Jhunjhunwala Date Of Hearing 19.07.2023 Date Of Pronouncement 24.07.2023 आदेश / O R D E R Per Amarjit Singh (Am): This Appeal Filed By The Revenue Is Directed Against The Order Passed By The Ld. Cit(A) Nfac, Dated 14.03.2023 For A.Y. 2018-19. The Assessee Has Raised The Following Grounds Before Us: “1. Whether On The Facts & Circumstances Of The Case & In Law The Ld. Citia) Erred In Deleting The Disallowance Made Under Section 37(1) Of The Act For An Amount Of Rs.2,01,96,568/- Incurred Towards Software License Expenses By Considering The Same As Revenue Expenditure. 2. Whether On The Facts & Circumstances Of The Case & In Law The Ld. Cit(A) Has Erred In Considering The Expenses Incurred By The Assessee On Software License Fee As Revenue Expenditure Instead Of Capital Expenditure, Without Appreciating The Fact That It Is An "Intangible Asset. The Income-Tax Act Clearly Categorizes The "License" As An Intangible Assets For Claiming Depreciation U/S 32 Which Is Based On The Ordinary Meaning Of The Same."

…sessee that these software, MS Windows 98 and MS Word 2000 have become obsolete very fast and the expenditure is revenue in nature and this claim is in line with the principle established by the Hon'ble Special Bench of the ITAT Amway India Enterprise vs. CIT 111 ITD 112 (Del) and also of the judgement of the Hon'ble P & H High Court in the case of Varinder Agro 22 DTR 127. 16. We have considered the issue. As seen from the nature of expenditure these were amounts paid for obtaining MS Windows 98 and MS Word 2000 software for its office use and not a new software purchased alongwith computer. Since the nature of…

DCIT Circle 8(2) (1), Mumbai vs. M/S. . Ogilvy and Mather Pvt. Ltd, Mumbai

In the result, the In the result, the cross appeals of the assessee and Revenue of the assessee and Revenue are dismissed

Bench: Shri Om Prakash Kant () & Shri Narender Kumar Choudhry ()

…d in favour of the appellant by the decision of Special Bench, ITAT, Delhi inthe of the appellant by the decision of Special Bench, ITAT, Delhi inthe of the appellant by the decision of Special Bench, ITAT, Delhi inthe case of Amway India Enterprises vs. DCIT 111 ITD 112. Respectfully of Amway India Enterprises vs. DCIT 111 ITD 112. Respectfully of Amway India Enterprises vs. DCIT 111 ITD 112. Respectfully followingthe same, the CIT(A) has directed the Assessing Officer to followingthe same, the CIT(A) has directed the Assessing Officer to followingthe same, the CIT(A) has directed the Assessing Officer to allow…

DCIT, Cir 8(2) (1), Mumbai vs. M/S. Ogilvy and Mather Pvt. Ltd, Mumbai

In the result, the In the result, the cross appeals of the assessee and Revenue of the assessee and Revenue are dismissed

Bench: Shri Om Prakash Kant () & Shri Narender Kumar Choudhry ()

…d in favour of the appellant by the decision of Special Bench, ITAT, Delhi inthe of the appellant by the decision of Special Bench, ITAT, Delhi inthe of the appellant by the decision of Special Bench, ITAT, Delhi inthe case of Amway India Enterprises vs. DCIT 111 ITD 112. Respectfully of Amway India Enterprises vs. DCIT 111 ITD 112. Respectfully of Amway India Enterprises vs. DCIT 111 ITD 112. Respectfully followingthe same, the CIT(A) has directed the Assessing Officer to followingthe same, the CIT(A) has directed the Assessing Officer to followingthe same, the CIT(A) has directed the Assessing Officer to allow…

Ogilvy and Mather P. Ltd, Mumbai vs. The Asstt. CIT-8(2)(1), Mumbai

In the result, the In the result, the cross appeals of the assessee and Revenue of the assessee and Revenue are dismissed

Bench: Shri Om Prakash Kant () & Shri Narender Kumar Choudhry ()

…d in favour of the appellant by the decision of Special Bench, ITAT, Delhi inthe of the appellant by the decision of Special Bench, ITAT, Delhi inthe of the appellant by the decision of Special Bench, ITAT, Delhi inthe case of Amway India Enterprises vs. DCIT 111 ITD 112. Respectfully of Amway India Enterprises vs. DCIT 111 ITD 112. Respectfully of Amway India Enterprises vs. DCIT 111 ITD 112. Respectfully followingthe same, the CIT(A) has directed the Assessing Officer to followingthe same, the CIT(A) has directed the Assessing Officer to followingthe same, the CIT(A) has directed the Assessing Officer to allow…

Ogily and Mather P. Ltd., Mumbai vs. The Asst. CIT -8(2)(1), Mumbai

In the result, the In the result, the cross appeals of the assessee and Revenue of the assessee and Revenue are dismissed

Bench: Shri Om Prakash Kant () & Shri Narender Kumar Choudhry ()

…d in favour of the appellant by the decision of Special Bench, ITAT, Delhi inthe of the appellant by the decision of Special Bench, ITAT, Delhi inthe of the appellant by the decision of Special Bench, ITAT, Delhi inthe case of Amway India Enterprises vs. DCIT 111 ITD 112. Respectfully of Amway India Enterprises vs. DCIT 111 ITD 112. Respectfully of Amway India Enterprises vs. DCIT 111 ITD 112. Respectfully followingthe same, the CIT(A) has directed the Assessing Officer to followingthe same, the CIT(A) has directed the Assessing Officer to followingthe same, the CIT(A) has directed the Assessing Officer to allow…

Ogilvy and Mather P. Ltd., Mumbai vs. The Asst. CIT-8(2)(1), Mumbai

In the result, the In the result, the cross appeals of the assessee and Revenue of the assessee and Revenue are dismissed

Bench: Shri Om Prakash Kant () & Shri Narender Kumar Choudhry ()

…d in favour of the appellant by the decision of Special Bench, ITAT, Delhi inthe of the appellant by the decision of Special Bench, ITAT, Delhi inthe of the appellant by the decision of Special Bench, ITAT, Delhi inthe case of Amway India Enterprises vs. DCIT 111 ITD 112. Respectfully of Amway India Enterprises vs. DCIT 111 ITD 112. Respectfully of Amway India Enterprises vs. DCIT 111 ITD 112. Respectfully followingthe same, the CIT(A) has directed the Assessing Officer to followingthe same, the CIT(A) has directed the Assessing Officer to followingthe same, the CIT(A) has directed the Assessing Officer to allow…