Brooke Bond India Ltd. v. CIT

225 ITR 798Supreme Court of India1997#390 most cited

What is Brooke Bond India Ltd. v. CIT authority for?

Expenditure incurred for increasing a company's share capital or expanding its capital base, such as expenses related to the issue of shares, constitutes capital expenditure. Such expenses are not deductible as revenue expenditure under Section 37(1) of the Income-tax Act, 1961, even if they incidentally benefit the business.

228

judgments rely on this decision, according to BharatTax’s citation analysis of 367,514 Indian tax judgments — from 2006 to 2026.

Also referred to as

Brooke Bond India Ltd. v. CIT · Section 37(1) · capital expenditure · revenue expenditure · share issue expenses · increase in capital · capital base expansion · deductibility · professional fees · enduring benefit

Also reported as

91 Taxmann 26

Sections most often in play

Section 37(1)Section 143(3)Section 14ASection 10BSection 28Section 35DSection 43(5)Section 143(1)
Read the full judgment

Issues it is cited on

section 35dspeculation losssection 43(5)strategic investmentenduring benefitsection 35capital expenditurerevenue expendituredisallowance under section 14abook profitscommercial expediencysection 37(1)

Judgments citing Brooke Bond India Ltd. v. CIT

Rosmerta Technologies Ltd, Mumbai vs. CIT-1, Mumbai

In the result, the appeal of the assessee is dismissed

ITA 2923/MUM/2013[2008-09]Status: DisposedITAT Mumbai16 Oct 2015AY 2008-09

Bench: S/Shri B.R.Baskaran, Am & Amarjit Singh, Jm आमकय अऩीर सं/ I.T.A. No.2923/Mum/2013 (निर्धारण वषा / Assessment Year: 2008-09 बिधम/ M/S. Rosmerta Technologies Ltd., The Commissioner Of Income Kewal Industrial Estate, Tax-1, Vs. Unit No.252/B-Wing, 2Nd Floor, Room No.330, 3 Rd Floor, Senapati Bapat Marg, Aayakar Bhawan, Lower Parel (W), New Marine Lines, Mumbai – 400013 Mumbai 400020 स्थामी रेखा सं./जीआइआय सं./Pan/Gir No. : Aadcr 2917D (अऩीराथी /Appellant) (प्रत्मथी / Respondent) ..

For Appellant: Shri Manoj Kumar JhaFor Respondent: Shri Subachan Ram, CIT(DR)
Section 143(3)Section 35Section 35D

…aw would render the assessment order erroneous and prejudicial to the interest of revenue. In this regard, he placed reliance on the following decisions: a) CIT V/s Jawahar Bhattacharjee (2012) 341 ITR 434 (Gauhati); and b) Booke Bond India Ltd V/s CIT (1997) 225 ITR 798 (SC). 5. Having heard the rival submissions, we find that the AO has not examined the claim of the assessee in terms of section 35D of the Act and hence incorrect appreciation of law would render the assessment order erroneous and prejudicial to the interest of revenue. Accordingly, we do not find any infirmity in the order of the ld. CIT(A) and…

Commissionerofincometax-I vs. Accession Buildwell (P) Ltd

ITA/153/2014HC Delhi27 Apr 2015

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE R.K.GAUBA

Section 22Section 260Section 56

…not be allowed and was also not amortizable under Section 35D (2)(c)(iii) of the Act, not being fee for initial registration of the company. The CIT’s view was supported by the Supreme Court judgments in Brook Bond India Ltd. v. Commissioner of Income Tax 225 ITR 798 and Punjab State Industrial Development Corporation Ltd. v Commissioner of Income Tax 225 ITR 798. The ITAT upheld this view. This Court finds no infirmity in its approach or decision. 6. As a result of the above discussion, no question of law requiring consideration of this Court arises in this appeal; it is, therefore, dismissed. S.…

Shri Maneklal Agarwal vs. The Deputy Commissioner of Income tax

ITTA/390/2010HC Telangana25 Feb 2015

Bench: A RAMALINGESWARA RAO,DILIP B. BHOSALE

CIT vs. Havells India Ltd

In the result the appeals filed by the revenue are disposed of with no

ITA/57/2012HC Delhi21 May 2012

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE R.V.EASWAR

Section 195Section 260ASection 40Section 9(1)(vii)

…t the time of conversion of the debentures. According to the Assessing Officer, this actually meant that the assessee was in fact making an issue of share capital and according to the judgments of the Supreme Court in Brooke Bond India Ltd. v. CIT, (1997) 225 ITR 798 and Punjab State Industrial Development Corporation v. CIT, (1997) 225 ITR 792, any expenditure incurred in relation to the expansion of the capital base of a company should be treated as capital expenditure. He accordingly disallowed the expenditure of `92,67,841/-. 24. On appeal the CIT (Appeals) referred to the judgment of the Rajastha…

Commissioner of Income Tax vs. Havells India Ltd

In the result the appeals filed by the revenue are disposed of with no

ITA/55/2012HC Delhi21 May 2012
Section 195Section 201Section 260ASection 40Section 9(1)(vii)

…t the time of conversion of the debentures. According to the Assessing Officer, this actually meant that the assessee was in fact making an issue of share capital and according to the judgments of the Supreme Court in Brooke Bond India Ltd. v. CIT, (1997) 225 ITR 798 and Punjab State Industrial Development Corporation v. CIT, (1997) 225 ITR 792, any expenditure incurred in relation to the expansion of the capital base of a company should be treated as capital expenditure. He accordingly disallowed the expenditure of `92,67,841/-. 24. On appeal the CIT (Appeals) referred to the judgment of the Rajastha…

CIT vs. Havells India Ltd

In the result the appeals filed by the revenue are disposed of with no

ITA - 55 / 2012HC Delhi21 Apr 2012
Section 195Section 201Section 260ASection 40Section 9(1)(vii)

…t the time of conversion of the debentures. According to the Assessing Officer, this actually meant that the assessee was in fact making an issue of share capital and according to the judgments of the Supreme Court in Brooke Bond India Ltd. v. CIT, (1997) 225 ITR 798 and Punjab State Industrial Development Corporation v. CIT, (1997) 225 ITR 792, any expenditure incurred in relation to the expansion of the capital base of a company should be treated as capital expenditure. He accordingly disallowed the expenditure of `92,67,841/-. 24. On appeal the CIT (Appeals) referred to the judgment of the Rajastha…

Commissioner of Income Tax Delhi IV vs. Escorts Finance Ltd

Appeal is partly allowed

ITA/1005/2008HC Delhi24 Aug 2009

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE VALMIKI J. MEHTA

Section 271(1)(c)Section 35DSection 35D(2)

…company. Assessee contended that the expenses had to be amortized as per Section 35D of the Act. However, the Assessing Officer was not convinced with the same and relying on the judgment of Supreme Court in the case of Brook Bond India Limited v. CIT, 225 ITR 798 disallowed the same treating the expenditure as capital in nature. During the assessment proceedings, the Assessing Officer further found that assessee had claimed 50% of the entertainment expenses as on account of employee’s participating in the business meetings while entertaining company’s guests. In earlier years, employee’s participa…

Commnr. of Income Tax, Mumbai vs. M/S. General Insurance Corpn.of India

C.A. No.-004422-004422 - 2001Supreme Court25 Sept 2006
For Respondent: M/s General Insurance Corporation
Section 143Section 260Section 81

…erefore, it should be regarded as the capital expenditure. Reliance has also been placed upon the judgments of this Court in Punjab State Industrial Development Corporation Ltd. Vs. CIT, (1997) 225 ITR 792 (SC) and Brooke Bond India Ltd. Vs. CIT, (1997) 225 ITR 798 (SC). He also relied upon in CIT vs. Motor Industries Co. Ltd., (1998) 229 ITR 137 of Karnataka High Court, in CIT vs. Ajit Mills Limited, (1994) 210 ITR 658, Gujrat Steel Tubes Ltd., vs. CIT, (1994) 210 ITR 358 of Gujarat High Court & Union Carbide India Ltd., vs. CIT, (1993) 203 ITR 584 of Calcutta High Court. As against this, learned…