Amway India Enterprises v. DCIT

111 ITD 112Income Tax Appellate Tribunal2008#809 most cited

What is Amway India Enterprises v. DCIT authority for?

Depreciation is allowable on computer software, including software licenses, at the rate of 60%.

127

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2015 to 2026.

Also referred to as

Amway India Enterprises v. DCIT · 111 ITD 112 · depreciation on software · computer software depreciation · software license depreciation · depreciation rate 60% · intangible assets · written down value · Section 32 · ITAT Special Bench

Also reported as

111 ITR 112

Sections most often in play

Section 143(3)Section 115JBSection 147Section 148Section 14ASection 37(1)Section 40(a)(i)Section 40(a)(ia)

Issues it is cited on

depreciation on softwaresection 33accomputer softwaresection 64section 40(a)(ii)section 35dwritten down valuefirst proviso to section 147section 115jb(2)intangible assetsretrospective amendmentgoing concern

Judgments citing Amway India Enterprises v. DCIT

M/S Timken Engineering & Research India P. Ltd vs. DCIT

In the result, the appeal of the revenue is partly allowed in the terms indicated above

ITA 335/BANG/2013[2008-09]Status: DisposedITAT Bangalore10 May 2019AY 2008-09

Bench: Shri Arun Kumar Garodia & Shri Laliet Kumar

For Appellant: Shri Aliasger Rampurawala, CAFor Respondent: Shri B.K. Panda, CIT (DR)
Section 133(6)Section 143(3)

…/2011, this issue has been restored back to the file of AO to verify whether the computer software is capital or revenue in the light of the criteria laid down by the special bench of the tribunal in the case of Amway India Enterprises Vs. DCIT as reported in 111 ITD 112 (Del SB). In course of hearing, it was pointed out by the bench that after this decision of Special Bench of the Tribunal cited by ld. AR of assessee, there is judgment of Hon’ble Karnataka High Court rendered in the case of CIT vs. M/s Wipro Limited in ITA No.507 of 2002 dated 25.08.2010 and as per the same, similar issue was decided against the…

DCIT, Bangalore vs. M/S Timken Engineering & Research India Pvt. Ltd., Bangalore

In the result, the appeal of the revenue is partly allowed in the terms indicated above

ITA 686/BANG/2012[2007-08]Status: DisposedITAT Bangalore10 May 2019AY 2007-08

Bench: Shri Arun Kumar Garodia & Shri Laliet Kumar

For Appellant: Shri Aliasger Rampurawala, CAFor Respondent: Shri B.K. Panda, CIT (DR)
Section 133(6)Section 143(3)

…/2011, this issue has been restored back to the file of AO to verify whether the computer software is capital or revenue in the light of the criteria laid down by the special bench of the tribunal in the case of Amway India Enterprises Vs. DCIT as reported in 111 ITD 112 (Del SB). In course of hearing, it was pointed out by the bench that after this decision of Special Bench of the Tribunal cited by ld. AR of assessee, there is judgment of Hon’ble Karnataka High Court rendered in the case of CIT vs. M/s Wipro Limited in ITA No.507 of 2002 dated 25.08.2010 and as per the same, similar issue was decided against the…

Timken Engineering & Research India Private Limited, Bangalore vs. DCIT, Bangalore

In the result, the appeal of the revenue is partly allowed in the terms indicated above

ITA 604/BANG/2012[2007-08]Status: DisposedITAT Bangalore10 May 2019AY 2007-08

Bench: Shri Arun Kumar Garodia & Shri Laliet Kumar

For Appellant: Shri Aliasger Rampurawala, CAFor Respondent: Shri B.K. Panda, CIT (DR)
Section 133(6)Section 143(3)

…/2011, this issue has been restored back to the file of AO to verify whether the computer software is capital or revenue in the light of the criteria laid down by the special bench of the tribunal in the case of Amway India Enterprises Vs. DCIT as reported in 111 ITD 112 (Del SB). In course of hearing, it was pointed out by the bench that after this decision of Special Bench of the Tribunal cited by ld. AR of assessee, there is judgment of Hon’ble Karnataka High Court rendered in the case of CIT vs. M/s Wipro Limited in ITA No.507 of 2002 dated 25.08.2010 and as per the same, similar issue was decided against the…

M/S. Timken Engineering & Research India Pvt. Ltd., Bangalore vs. DCIT, Bangalore

In the result, the appeal of the revenue is partly allowed in the terms indicated above

ITA 1339/BANG/2010[2006-07]Status: DisposedITAT Bangalore10 May 2019AY 2006-07

Bench: Shri Arun Kumar Garodia & Shri Laliet Kumar

For Appellant: Shri Aliasger Rampurawala, CAFor Respondent: Shri B.K. Panda, CIT (DR)
Section 133(6)Section 143(3)

…/2011, this issue has been restored back to the file of AO to verify whether the computer software is capital or revenue in the light of the criteria laid down by the special bench of the tribunal in the case of Amway India Enterprises Vs. DCIT as reported in 111 ITD 112 (Del SB). In course of hearing, it was pointed out by the bench that after this decision of Special Bench of the Tribunal cited by ld. AR of assessee, there is judgment of Hon’ble Karnataka High Court rendered in the case of CIT vs. M/s Wipro Limited in ITA No.507 of 2002 dated 25.08.2010 and as per the same, similar issue was decided against the…

Cwt India P.Ltd, Mumbai vs. DCIT (OSD) RG 8(1), Mumbai

In the result, appeals filed by the assessee for assessment years 2009-

ITA 1588/MUM/2014[2009-10]Status: DisposedITAT Mumbai01 May 2019AY 2009-10

Bench: Shri R.C. Sharma (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2009-10 Assessment Year: 2010-11 Assessment Year: 2011-12 & Assessment Year: 2012-13 M/S Cwt India Private Limited, The Assistant Commissioner Of Unit No. 2, Raheja Centre, Income Tax-9(2)(2), Ground Floor, Aayakar Bhavan, Free Press Journal Marg, Vs. Mumbai - 400020 Nariman Point, Mumbai – 400021 Pan : Aaaci7084H (Appellant) (Respondent)

For Appellant: Shri Mukesh Butani/For Respondent: Saurabh Deshpande /
Section 115JSection 143Section 143(3)Section 144CSection 144C(1)Section 144C(5)Section 92C

…is revenue expenditure and there is no benefit of an enduring nature, therefore the same is allowable expenditure under section 37 (1) of the Act. The Ld. counsel further submitted that the Delhi special Bench of the ITAT in the case of Amway India Enterprise 111 ITD 112 (Delhi) has held that for deciding the nature of expenditure incurred on account of computer software the ownership test, enduring benefits test and functional test have to be evaluated. The Ld. counsel further relying on the decision of the Hon’ble Bombay High Court in the case Raychem RPG Ltd. 346 ITR 138 and the decision of the Hon’ble Delhi H…

Stmicroelectronics Pvt. Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, the appeal is partly allowed as discussed above

ITA 4888/DEL/2011[2007-08]Status: DisposedITAT Delhi19 Mar 2019AY 2007-08

Bench: : Shri Bhavnesh Saini & Shri L.P. Sahu

Section 143(3)Section 144CSection 234ASection 271(1)(c)

…27. We have gone through the material placed on record by the assessee. It was submitted that the above expenses are to be regarded as incurred on revenue field as per the test laid down by the Special Bench of Tribunal in the case of Amway India Enterprises, 111 ITD 112 (Del) (SB) in as much as (i) such computer software does not have utility for long duration and hence do not result in enduring benefit and (ii) such software does not constitute a profit earning apparatus and merely enable the appellant to efficiently conduct its business. The aforesaid decision has been affirmed by the Hon’ble Delhi High Court…

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)

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SMT BEENA A. PILLAI, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER Assessment Year ITA No of AO ITA NO of Assessee 2000-01 NA 4410/Del/2003 2001-02 3426/Del/2003 NA 2002-03 1308/Del/2006 1271/Del/2006 2003-04 NA 2815/Del/2008 2004-05 3104/del/2008 3242/Del/2008 2005-06 3920/Del/2009 3724/ Del/2009 2006-07 3314/Del/2010 3393/Del/2010 2007-08 2479/Del/2011 2596/Del/2011 2008-09 4975/del/2012 4793/Del/2012 The Addl. Commissioner of Jubilant Life sciences Vs. Income Tax Limited & Formerly known as The Assistant Commissioner of M/s.…

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)

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SMT BEENA A. PILLAI, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER Assessment Year ITA No of AO ITA NO of Assessee 2000-01 NA 4410/Del/2003 2001-02 3426/Del/2003 NA 2002-03 1308/Del/2006 1271/Del/2006 2003-04 NA 2815/Del/2008 2004-05 3104/del/2008 3242/Del/2008 2005-06 3920/Del/2009 3724/ Del/2009 2006-07 3314/Del/2010 3393/Del/2010 2007-08 2479/Del/2011 2596/Del/2011 2008-09 4975/del/2012 4793/Del/2012 The Addl. Commissioner of Jubilant Life sciences Vs. Income Tax Limited & Formerly known as The Assistant Commissioner of M/s.…

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)

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SMT BEENA A. PILLAI, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER Assessment Year ITA No of AO ITA NO of Assessee 2000-01 NA 4410/Del/2003 2001-02 3426/Del/2003 NA 2002-03 1308/Del/2006 1271/Del/2006 2003-04 NA 2815/Del/2008 2004-05 3104/del/2008 3242/Del/2008 2005-06 3724/ Del/2009 3920/Del/2009 2006-07 3314/Del/2010 3393/Del/2010 2007-08 2497/Del/2011 2596/Del/2011 2008-09 4975/del/2012 4793/Del/2012 The Addl. Commissioner of Jubilant Life sciences Vs. Income Tax Limited & Formerly known as The Assistant Commissioner of M/s.…

DCIT, New Delhi vs. M/S Oxigen Services India Pvt. Ltd., New Delhi

In the result both the appeals of the revenue are dismissed

ITA 3766/DEL/2015[2010-11]Status: DisposedITAT Delhi15 Feb 2019AY 2010-11

Bench: Shri R.K. Panda & Shri K. Narasimha Chary

For Appellant: Smt NainaSoin Kapil, CIT DRFor Respondent: Sh SatyenSethi, Advocate
Section 14Section 143(3)

…count should be decided from the practical and the business viewpoint and in accordance with the sound accountancy principles;and that in view of the view taken by the Special Bench of the Delhi-Trib nail in the case of Amway India Enterprises vs. DCIT (2008) 111 ITD 112 while dealing with this complex issueto decide the nature of the expenditure as to whether it is capital or revenue, the tests of enduring benefit, ownership and functional aspectsare generally applied. 5. She further submitted that the issue needs a deeper investigation by the authorities below and the services as cited by the Ld. CIT(A) do not…

DCIT, New Delhi vs. M/S Oxigen Services India Pvt. Ltd., New Delhi

In the result both the appeals of the revenue are dismissed

ITA 3765/DEL/2015[2008-09]Status: DisposedITAT Delhi15 Feb 2019AY 2008-09

Bench: Shri R.K. Panda & Shri K. Narasimha Chary

For Appellant: Smt NainaSoin Kapil, CIT DRFor Respondent: Sh SatyenSethi, Advocate
Section 14Section 143(3)

…count should be decided from the practical and the business viewpoint and in accordance with the sound accountancy principles;and that in view of the view taken by the Special Bench of the Delhi-Trib nail in the case of Amway India Enterprises vs. DCIT (2008) 111 ITD 112 while dealing with this complex issueto decide the nature of the expenditure as to whether it is capital or revenue, the tests of enduring benefit, ownership and functional aspectsare generally applied. 5. She further submitted that the issue needs a deeper investigation by the authorities below and the services as cited by the Ld. CIT(A) do not…

ACIT, Ludhiana vs. M/S Vardhman Textiles Ltd., Ludhiana

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 575/CHANDI/2009[2005-06]Status: DisposedITAT Chandigarh04 May 2018AY 2005-06

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…penditure incurred for implementation review of BPCS and TIM Software Systems pertaining to the back office functions as capital in nature. 26.2 The Ld. CIT(A) followed the rationale of Special Bench of ITAT decision in the case of Amway Enterprises Vs. DCIT 111 ITD 112 (Del). While treating the expenditure as revenue in nature it was held that, if the advantage to the assessee consists merely in facilitating assessee’s trading operations and enabling the management and conduct of the assessee’s business to be carried on more efficient way it should be treated as Revenue expenditure. 26.3 We have gone through t…

M/S Vardhman Textiles Ltd., Ludhiana vs. Addl. CIT, Ludhiana

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 528/CHANDI/2009[2005-06]Status: DisposedITAT Chandigarh04 May 2018AY 2005-06

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…penditure incurred for implementation review of BPCS and TIM Software Systems pertaining to the back office functions as capital in nature. 26.2 The Ld. CIT(A) followed the rationale of Special Bench of ITAT decision in the case of Amway Enterprises Vs. DCIT 111 ITD 112 (Del). While treating the expenditure as revenue in nature it was held that, if the advantage to the assessee consists merely in facilitating assessee’s trading operations and enabling the management and conduct of the assessee’s business to be carried on more efficient way it should be treated as Revenue expenditure. 26.3 We have gone through t…

ACIT, Ludhiana vs. M/S Vardhman Textiles Ltd., Ludhiana

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 981/CHANDI/2008[2004-05]Status: DisposedITAT Chandigarh04 May 2018AY 2004-05

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…penditure incurred for implementation review of BPCS and TIM Software Systems pertaining to the back office functions as capital in nature. 26.2 The Ld. CIT(A) followed the rationale of Special Bench of ITAT decision in the case of Amway Enterprises Vs. DCIT 111 ITD 112 (Del). While treating the expenditure as revenue in nature it was held that, if the advantage to the assessee consists merely in facilitating assessee’s trading operations and enabling the management and conduct of the assessee’s business to be carried on more efficient way it should be treated as Revenue expenditure. 26.3 We have gone through t…

Vardhman Textiles Ltd., Ludhiana vs. JCIT, Ludhiana

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 938/CHANDI/2008[2004-05]Status: DisposedITAT Chandigarh04 May 2018AY 2004-05

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…penditure incurred for implementation review of BPCS and TIM Software Systems pertaining to the back office functions as capital in nature. 26.2 The Ld. CIT(A) followed the rationale of Special Bench of ITAT decision in the case of Amway Enterprises Vs. DCIT 111 ITD 112 (Del). While treating the expenditure as revenue in nature it was held that, if the advantage to the assessee consists merely in facilitating assessee’s trading operations and enabling the management and conduct of the assessee’s business to be carried on more efficient way it should be treated as Revenue expenditure. 26.3 We have gone through t…

ACIT, Ludhiana vs. M/S Vardhman Textiles Ltd., Ludhiana

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 530/CHANDI/2008[2003-04]Status: DisposedITAT Chandigarh04 May 2018AY 2003-04

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…penditure incurred for implementation review of BPCS and TIM Software Systems pertaining to the back office functions as capital in nature. 26.2 The Ld. CIT(A) followed the rationale of Special Bench of ITAT decision in the case of Amway Enterprises Vs. DCIT 111 ITD 112 (Del). While treating the expenditure as revenue in nature it was held that, if the advantage to the assessee consists merely in facilitating assessee’s trading operations and enabling the management and conduct of the assessee’s business to be carried on more efficient way it should be treated as Revenue expenditure. 26.3 We have gone through t…

Vardhman Textile Ltd., Ludhiana vs. ACIT, Ludhiana

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 475/CHANDI/2008[2003-04]Status: DisposedITAT Chandigarh04 May 2018AY 2003-04

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…penditure incurred for implementation review of BPCS and TIM Software Systems pertaining to the back office functions as capital in nature. 26.2 The Ld. CIT(A) followed the rationale of Special Bench of ITAT decision in the case of Amway Enterprises Vs. DCIT 111 ITD 112 (Del). While treating the expenditure as revenue in nature it was held that, if the advantage to the assessee consists merely in facilitating assessee’s trading operations and enabling the management and conduct of the assessee’s business to be carried on more efficient way it should be treated as Revenue expenditure. 26.3 We have gone through t…

ACIT, Ludhiana vs. Vardhman Textiles Ltd., Ludhiana

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 691/CHANDI/2007[2002-03]Status: DisposedITAT Chandigarh04 May 2018AY 2002-03

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…penditure incurred for implementation review of BPCS and TIM Software Systems pertaining to the back office functions as capital in nature. 26.2 The Ld. CIT(A) followed the rationale of Special Bench of ITAT decision in the case of Amway Enterprises Vs. DCIT 111 ITD 112 (Del). While treating the expenditure as revenue in nature it was held that, if the advantage to the assessee consists merely in facilitating assessee’s trading operations and enabling the management and conduct of the assessee’s business to be carried on more efficient way it should be treated as Revenue expenditure. 26.3 We have gone through t…

M/S Vardhman Textiles Ltd., Ludhiana vs. ACIT, Ludhiana

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 681/CHANDI/2007[2002-03]Status: DisposedITAT Chandigarh04 May 2018AY 2002-03

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…penditure incurred for implementation review of BPCS and TIM Software Systems pertaining to the back office functions as capital in nature. 26.2 The Ld. CIT(A) followed the rationale of Special Bench of ITAT decision in the case of Amway Enterprises Vs. DCIT 111 ITD 112 (Del). While treating the expenditure as revenue in nature it was held that, if the advantage to the assessee consists merely in facilitating assessee’s trading operations and enabling the management and conduct of the assessee’s business to be carried on more efficient way it should be treated as Revenue expenditure. 26.3 We have gone through t…

Hdfc Securities Ltd, Mumbai vs. DCIT 4(1), Mumbai

In the result, appeal of the assessee is allowed in terms indicated hereinabove whereas appeal of the Revenue is dismissed

ITA 738/MUM/2016[2011-12]Status: DisposedITAT Mumbai16 Apr 2018AY 2011-12

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm M/S. Hdfc Securities Ltd., Vs. Dcit – 4(1) Office Floor 8 Mumbai I-Think Techno Campus Alpha Building, B Kanjurmarg (E) Mumbai – 400 042 Pan/Gir No.Aaach8215R Appellant) Respondent) .. Dcit – 4(1) (1) Vs. M/S. Hdfc Securities Ltd., Mumbai Office Floor 8 I-Think Techno Campus Alpha Building, B Kanjurmarg (E) Mumbai – 400 042 Pan/Gir No. Aaach8215R Appellant) Respondent) .. Assessee By Ms. Krupa R. Gandhi / Shri Vidhi Doshi Revenue By Shri Rajat Mittal

Section 133ASection 143(3)Section 194JSection 40

…liance may be placed on the following judicial pronouncements:-  CIT v. Raychem RPG Ltd. (346 ITR UNHM-HM )  CIT v. Geoffrey Manners & Co. Lid. (226 Taxman135) (Bom.)  CIT v. UHDE India (P.) Ltd. (224 Taxman 137(Bom.)  Amway India Enterprises v. Dy. CIT ( 111 ITD 112(Del Trib) (SB) affirmed in n CIT v. Amway India Enterprises (346 ITR 341(Del HC ')  CIT v. Voith Paper Fabrics India Ltd. (.346 ITR 70)(P&H)  CIT v. Asahi India Safety Glass Ltd. (203 Taxman 277) (Delhi HC)  CIT v. Varinder Agro Chemicals Lid. (309 ITR 272) (P & H) 11. In the following judicial pronouncements, it has been held that updation /…