Arvind Mills Ltd. v. CIT

Reliance Lifestyle Holdings Ltd, Mumbai vs. DCIT RG 3(1), Mumbai

In the result, the appeal filed by the assessee is partly allowed for statistical purpose

…,24,839 - (vi) Gen and admin charges 23,722 - (vii) Interest and finance charges 56,421 - 1,05,89,164 Less - - Capitalized during the year Closing balance 1,05,89,164 It has been held by the Honble Supreme Court in the, case of Arvind Mills Ltd. v. CIT(1992) 197 ITR 422,429,431 (SC) that "the expenditure incurred on a capital asset does not lose character of capital expenditure and does not become a revenue expenditure on the score that the said capital expenditure also ultimately ensures to the efficient running of the business." In view of the above, the case of the appellant is distinguishable decisions from…

DCIT Cir 2(1) vs. The Hindustan Spinning & Weaving Mills Ltd

Accordingly, the assessee is not entitled for this additional relief of Rs.1.52 crores and the appeal of Revenue is allowed on this issue

Bench: Shri G.S. Pannu & Shri Sanjay Garg

….O. to allow VRS expenditure of Rs.4,18,05,537/- as revenue expenditure which was treated as capital expenditure by AO in view of Supreme Court Decision in the case of Assam Bengal Cement Co. Ltd. Vs. CIT (1955) 27 ITR 34, 45 and also Arvind Mills Ltd. (1992) 197 ITR 422." 2. On the facts and circumstances of the case and in law, the learned CIT(A) has erred in directing the A.O. to delete the addition made to closing stock in respect of conversion value of flat from capital asset into stock in trade. 3. On the facts and circumstances of the case and in law, the learned CIT(A) has erred in holding that the amou…

Welspun Syntex Ltd, Mumbai vs. ITO WD 4(3)(2), Mumbai

In the result, appeal filed by the revenue is dismissed and appeals filed by the assessee are partly allowed

Bench: Shri Amit Shukla & Shri Ashwani Tanejaassessment Year: 1998-99

…ex Ltd. is entitled for depreciation on additional liability arising on account of fluctuation in foreign exchange under general principles. In support of his arguments, he relied upon judgments of Hon’ble Supreme Court in the case of CIT v. Arvind Mills Ltd. 193 ITR 255 for this proposition and argued that this issue is covered with the said judgment of Hon’ble Supreme Court. 3.4. Per contra, Ld. DR submitted that section 43A is clear in its expression and does not provide benefit where the machine is purchased within India. He further submitted that under the general principles also assessee cannot be given ben…

Welspun Syntex Ltd, Mumbai vs. JCIT Sp RG 25, Mumbai

In the result, appeal filed by the revenue is dismissed and appeals filed by the assessee are partly allowed

Bench: Shri Amit Shukla & Shri Ashwani Tanejaassessment Year: 1998-99

…ex Ltd. is entitled for depreciation on additional liability arising on account of fluctuation in foreign exchange under general principles. In support of his arguments, he relied upon judgments of Hon’ble Supreme Court in the case of CIT v. Arvind Mills Ltd. 193 ITR 255 for this proposition and argued that this issue is covered with the said judgment of Hon’ble Supreme Court. 3.4. Per contra, Ld. DR submitted that section 43A is clear in its expression and does not provide benefit where the machine is purchased within India. He further submitted that under the general principles also assessee cannot be given ben…

Addl CIT Cen Cir IX, Mumbai vs. Prism Cement Ltd, Mumbai

Appeals are disposed of in terms

Bench: Shri Joginder Singh & Shri Rajendra

…rrying cost of fixed assets acquired in foreign currency, due to foreign exchange fluctuation at each balance sheet date. In this connection, learned counsel has placed reliance on the judgment of this Court in the case of CIT v. Arvind Mills Ltd. reported in 193 ITR 255. 29. To answer the controversy, we need to analyse Section 43A (unamended). The period in question in the batch of Civil Appeals is prior to Finance Act, 2002, therefore, we are required to consider the scope of Section 43A (unamended). 30. Section 43A starts with a non obstante clause. Section 43A(1) overrides the other provisions only as regar…

ACIT Cen Cir Cir-34, Mumbai vs. Prism Cement Ltd, Mumbai

Appeals are disposed of in terms

Bench: Shri Joginder Singh & Shri Rajendra

…rrying cost of fixed assets acquired in foreign currency, due to foreign exchange fluctuation at each balance sheet date. In this connection, learned counsel has placed reliance on the judgment of this Court in the case of CIT v. Arvind Mills Ltd. reported in 193 ITR 255. 29. To answer the controversy, we need to analyse Section 43A (unamended). The period in question in the batch of Civil Appeals is prior to Finance Act, 2002, therefore, we are required to consider the scope of Section 43A (unamended). 30. Section 43A starts with a non obstante clause. Section 43A(1) overrides the other provisions only as regar…

DCIT Cen Cir 34, Mumbai vs. Prism Cement Ltd, Mumbai

Appeals are disposed of in terms

Bench: Shri Joginder Singh & Shri Rajendra

…rrying cost of fixed assets acquired in foreign currency, due to foreign exchange fluctuation at each balance sheet date. In this connection, learned counsel has placed reliance on the judgment of this Court in the case of CIT v. Arvind Mills Ltd. reported in 193 ITR 255. 29. To answer the controversy, we need to analyse Section 43A (unamended). The period in question in the batch of Civil Appeals is prior to Finance Act, 2002, therefore, we are required to consider the scope of Section 43A (unamended). 30. Section 43A starts with a non obstante clause. Section 43A(1) overrides the other provisions only as regar…