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

M/S Tamilnadu Chemists & Allied Distributors Alliance Ltd (in Liquidation), Chennai vs. ITO Corp Ward 3 (1), Chennai

In the result, the appeal filed by the assessee is dismissed

ITA 406/CHNY/2018[2009-10]Status: DisposedITAT Chennai15 Oct 2018AY 2009-10

Bench: Shri Abraham P. George & Shri Duvvuru Rl Reddyआयकर अपील सं./I.T.A.No.406/Chny/2018 िनधा"रण वष"/Assessment Year:2009-10 M/S. Tamilnadu Chemists & Allied The Income Tax Officer, Distributors Alliance Ltd. [In Vs. Corporate Ward 3(1), Liquidation], D-36, 8Th Floor, Halls Nungambakkam, Tower, No. 33, Halls Road, Egmore, Chennai. Chennai 600 008. [Pan:Aacct7540H] (अपीलाथ" /Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri R. Viswanathan, C.A. ""थ" की ओर से/Respondent By : Shri B. Sagadevan, Jcit सुनवाई की तारीख/ Date Of Hearing : 09.08.2018 घोषणा की तारीख /Date Of Pronouncement : 15.10.2018 आदेश /O R D E R Per Duvvuru Rl Reddy: This Appeal Filed By The Assessee Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) 11, Chennai Dated 14.11.2017 Relevant To The Assessment Year 2009-10. The Only Effective Ground Raised In The Appeal Of The Assessee Is That The Ld. Cit(A) Has Erred In Confirming The Disallowance Of Expenditure Of ₹.2,34,411/- On The Ground That The Assessee Has Not Commenced Its Business Operation.

For Appellant: Shri R. Viswanathan, C.AFor Respondent: Shri B. Sagadevan, JCIT

…आयकर अपीलीय अिधकरण, “डी” "ायपीठ, चे"ई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI "ी अ"ाहम पी. जॉज", लेखा सद" एवं "ी धु"ु" आर.एल रे"ी, "ाियक सद" के सम" Before Shri Abraham P. George, Accountant Member & Shri Duvvuru RL Reddy, Judicial Member आयकर अपील सं./I.T.A.No.406/Chny/2018 िनधा"रण वष"/Assessment Year:2009-10 M/s. Tamilnadu Chemists & Allied The Income Tax Officer, Distributors Alliance Ltd. [in Vs. Corporate Ward 3(1), Liquidation], D-36, 8th Floor, Halls Nungambakkam, Tower, No. 33, Halls Road, Egmore, Chennai. Chennai 600 008. [PAN:AACCT7540H] (अपीलाथ" /Appellant) (""थ"/Respondent) अपीलाथ" की ओ…

Financial Institutional Securities Ltd, Mumbai vs. DCIT 4(3)(1), Mumbai

ITA 6891/MUM/2016[2012-13]Status: DisposedITAT Mumbai03 Oct 2018AY 2012-13

Bench: Shri Saktijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am आयकरअपीलसं./I.T.A. No.6479/Mum/2016 (िनधा"रणवष" / Assessment Year:2012-13) Jm Financial Institutional Securities Ltd. Assistant Commissioner Of Income (Now Merged With Jm Financial Limited) Tax- 4(3)(1) बनाम/ 7Th Floor, Cnergy Room No.649, 6Th Floor, Vs. Appasaheb Marathe Marg Aaykar Bhavan, M.K. Road Prabhadevi, Mumbai-400 025 Mumbai-400 020 "थायीलेखासं./जीआइआरसं./Pan/Gir No.Aabca-2496-G (अपीलाथ"/Appellant) (""थ" / Respondent) :

For Appellant: K. Shivram & Aditya Ajgaonkar, Ld. AR’sFor Respondent: Pooja Swaroop, Ld. JCIT-DR
Section 143(3)

…o issue of shares to employees. They are not relatable to profits and gains arising or accruing from a business / trade. The Apex Court decision in the case of Punjab State Industrial Devl. Corp. Ltd. (1997) 225 ITR 792 (SC) and Brooke Bond India Ltd., (1997) 225 ITR 798 (SC) have held that expenditure resulting in “increase in capital” is not an allowable deduction even if such expenditure may incidentally held in business of the company. b) ESOP discount does not diminish trading/ business receipts of the issuing company. The company does not suffer any pecuniary detriment. To claim a charge against income, it…

ACIT - 4(3)(1), Mumbai vs. J. M. Financial Institutional Securities Pvt. Ltd., Mumbai

ITA 6479/MUM/2016[2012-13]Status: DisposedITAT Mumbai03 Oct 2018AY 2012-13

Bench: Shri Saktijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am आयकरअपीलसं./I.T.A. No.6479/Mum/2016 (िनधा"रणवष" / Assessment Year:2012-13) Jm Financial Institutional Securities Ltd. Assistant Commissioner Of Income (Now Merged With Jm Financial Limited) Tax- 4(3)(1) बनाम/ 7Th Floor, Cnergy Room No.649, 6Th Floor, Vs. Appasaheb Marathe Marg Aaykar Bhavan, M.K. Road Prabhadevi, Mumbai-400 025 Mumbai-400 020 "थायीलेखासं./जीआइआरसं./Pan/Gir No.Aabca-2496-G (अपीलाथ"/Appellant) (""थ" / Respondent) :

For Appellant: K. Shivram & Aditya Ajgaonkar, Ld. AR’sFor Respondent: Pooja Swaroop, Ld. JCIT-DR
Section 143(3)

…o issue of shares to employees. They are not relatable to profits and gains arising or accruing from a business / trade. The Apex Court decision in the case of Punjab State Industrial Devl. Corp. Ltd. (1997) 225 ITR 792 (SC) and Brooke Bond India Ltd., (1997) 225 ITR 798 (SC) have held that expenditure resulting in “increase in capital” is not an allowable deduction even if such expenditure may incidentally held in business of the company. b) ESOP discount does not diminish trading/ business receipts of the issuing company. The company does not suffer any pecuniary detriment. To claim a charge against income, it…

Aditya Birla Power Co.Ltd, Mumbai vs. Asst CIT 8(1), Mumbai

ITA 1115/MUM/2012[2007-08]Status: DisposedITAT Mumbai07 Sept 2018AY 2007-08

Bench: Shri C.N. Prasad, Jm & Shri Manoj Kumar Aggarwal, Am आयकरअपीलसं./I.T.A. No.1115/Mum/2012 (िनधा"रणवष" / Assessment Year:2007-08) Aditya Birla Power Company Limited Assistant Commissioner Of C-1, Aditya Birla Centre Income Tax -8(1) बनाम/ Room No.204, 2Nd Floor S.K. Ahire Marg, Worli Vs. Mumbai-400 030 Aaykar Bhavan Mumbai-400 020 "थायीलेखासं./जीआइआरसं./Pan/Gir No.Aabcb-7067-N (अपीलाथ"/Appellant) (""थ" / Respondent) : Revenue By : Rajesh Kumar Yadav,Ld.Dr Assessee By : Yogesh Thar & Hardik Nirmal, Ld.Ar’S सुनवाई की तारीख/ : 02/07/2018 Date Of Hearing घोषणा की तारीख / : 07/09/2018 Date Of Pronouncement

For Appellant: Yogesh Thar & Hardik Nirmal, Ld.AR’sFor Respondent: Rajesh Kumar Yadav,Ld.DR
Section 143(3)Section 28Section 36Section 36(2)Section 37(1)

…oser reading it proves otherwise. The question was whether the assessee was justified in seeking for bifurcation of the expenses incurred into capital and revenue. The Division Bench referred to the decision in the case of Brooke Bond India Ltd. v. CIT [1997] 225 ITR 798/91 Taxman 26 (SC). In the case of Brooke Bond India Ltd. (supra), it was held that expenditure, in connection with the additional issue of shares, paid to the…

Sakal Paper Ltd., Pune vs. ACIT, Cir.-6, Pune

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

ITA 937/PUN/2008[2005-06]Status: DisposedITAT Pune01 Aug 2018AY 2005-06

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am आयकर अपीऱ सं. / Ita No.725/Pun/2008 यििाारण वषा / Assessment Year : 2005-06 The Asst. Commissioner Of Income Tax, अऩीऱाथी/Appellant Circle-6, Pune …. Vs. Sakal Papers Ltd., 595, Budhawar Peth, …. प्रत्यथी / Respondent Pune – 411002 Pan: Aaccs7605Q

For Appellant: Shri Ashok KothariFor Respondent: Shri Mukesh Jha
Section 143(3)Section 80I

…n business; it was the expenditure which was forced upon the Respondent- Assessee so as to carry on its business and not an expenditure of choice. The Hon’ble Bombay High Court also held that the decision of Apex Court in Brooke Bond India Ltd. Vs. CIT (1997) 225 ITR 798 (SC) was inapplicable to the facts of the case since in the said case, the assessee therein issued shares to the general public with a view to increase its share capital. The expenditure incurred by Brooke Bond to increase its capital, was claimed to be Revenue in nature and, therefore, deductable. The Apex Court upheld the order of the High Cour…

ACIT, Cir.-6., Pune vs. Sakal Paper Ltd., Pune

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

ITA 725/PUN/2008[2005-06]Status: DisposedITAT Pune01 Aug 2018AY 2005-06

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am आयकर अपीऱ सं. / Ita No.725/Pun/2008 यििाारण वषा / Assessment Year : 2005-06 The Asst. Commissioner Of Income Tax, अऩीऱाथी/Appellant Circle-6, Pune …. Vs. Sakal Papers Ltd., 595, Budhawar Peth, …. प्रत्यथी / Respondent Pune – 411002 Pan: Aaccs7605Q

For Appellant: Shri Ashok KothariFor Respondent: Shri Mukesh Jha
Section 143(3)Section 80I

…n business; it was the expenditure which was forced upon the Respondent- Assessee so as to carry on its business and not an expenditure of choice. The Hon’ble Bombay High Court also held that the decision of Apex Court in Brooke Bond India Ltd. Vs. CIT (1997) 225 ITR 798 (SC) was inapplicable to the facts of the case since in the said case, the assessee therein issued shares to the general public with a view to increase its share capital. The expenditure incurred by Brooke Bond to increase its capital, was claimed to be Revenue in nature and, therefore, deductable. The Apex Court upheld the order of the High Cour…

DCIT-9(1)(2), Mumbai vs. Atc India Tower Corporation Pvt. Ltd, Mumbai

In the result, appeal filed by assessee is allowed

ITA 2620/MUM/2016[2008-09]Status: DisposedITAT Mumbai31 Jul 2018AY 2008-09

Bench: Shri G.S. Pannu & Shri Pawan Singhin The Matter Of Deputy Commissioner Of Income-Tax -9(2) Room No. 260A, 2Nd Floor, Aayakar Bhawan, M. K. Road, Mumbai-400020 ------- Appellant/ Revenue (Revenue Through Sh. Rajesh Kumar Yadav Sr Dr Versus M/S Atc India Tower Corporation, 404, 4Th Floor, Skyline Icon, Andheri Kurla Road, Andheri East, Mumbai- 400049 Pan: Aajcs7669H -------- Respondent / Assessee (Assessee Through Sh. Satyen Sethi Advocate Reserve For Order : 02.05.2018 Date Of Pronouncement : 31.07.2018 Order Under Section 254(1) Of Income -Tax Act Per Pawan Singh; 1. This Appeal By Revenue Under Section 253 Of Income-Tax Act Is Directed Against The Order Of Commissioner (Appeals)-16, Mumbai Dated 22Nd January 2016, Which Arise From Assessment Order Passed Under Section 143(3) Read With Section 147 Dated 25Th March 2013 For Assessment Year

Section 143(3)Section 147Section 148Section 253Section 254(1)

…IN THE INCOME-TAX APPELLATE TRIBUNAL“A”BENCH, MUMBAI BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER In the matter of Deputy Commissioner of Income-tax -9(2) Room No. 260A, 2nd Floor, Aayakar Bhawan, M. K. Road, Mumbai-400020 ------- Appellant/ Revenue (Revenue through Sh. Rajesh Kumar Yadav Sr DR Versus M/s ATC India Tower Corporation, 404, 4th Floor, Skyline Icon, Andheri Kurla Road, Andheri East, Mumbai- 400049 PAN: AAJCS7669H -------- Respondent / Assessee (Assessee through Sh. Satyen Sethi Advocate Reserve for order : 02.05.2018 Date of Pronouncement : 31.07.2018 Order unde…

DCIT, Circle-16(2), Hyderabad vs. Mercury Projects Private Limited, Hyderabad

ITA 450/HYD/2017[2011-12]Status: DisposedITAT Hyderabad18 Jul 2018AY 2011-12

Bench: Smt. P. Madhavi Devi & Shri S.Rifaur Rahmandy. Commissioner Of Vs M/S. Mercury Projects Income Tax, Circle 16(2) Private Limited, Hyderabad Hyderabad Pan: Aadcm9019R (Appellant) (Respondent)

For Appellant: Shri P. Murali Mohan RaoFor Respondent: Smt. N. Swapna, DR
Section 143(3)Section 14ASection 35D

…rred in deleting the disallowance of preliminary expenses written off u/s 35D. 3. On the facts and in the circumstances of the case, and in law, the Ld. CIT(A) erred by not following the Supreme Court decisions in the case of Brooke Bond India Ltd Versus CIT (225 ITR 798) and Punjab State Page 1 of 8 ITA No 450 of 2017 Mercury Projects P Ltd Hyderabad. Industrial Development Corporation Ltd Versus CIT(220 ITR 792) 4. The appellant prays that the order of Ld. CIT(A) on the above grounds be set aside and that of the Assessing Officer be restored”. 2. Brief facts of the case are that the assessee company, engag…

Motilal Oswal Financial Services Ltd, Mumbai vs. DCIT 3(2), Mumbai

ITA 64/MUM/2011[2007-08]Status: DisposedITAT Mumbai27 Jun 2018AY 2007-08

Bench: S/Sh.Rajendra & Amarjit Singhिनधा"रण वष" वष" /Assessment Year: 2007-08 आयकर अपील सं./I.T.A./64/Mum/2011, िनधा"रण िनधा"रण िनधा"रण वष" वष" आयकर अपील सं./I.T.A./7045/Mum/2011,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2008-09 िनधा"रण िनधा"रण वष" वष" आयकर अपील सं./I.T.A./5609/Mum/2013,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2010-11 िनधा"रण िनधा"रण वष" वष" M/S.Motilal Oswal Financial Services Addl. Cit-Range-3(2) Ltd. Aayakar Bhavan, M.K. Road 2Nd Floor, Palm Spring Centre Mumbai-400 020. Vs. New Link Road, Malad (W) Mumbai-400 064. Pan:Aaecm 2876 P (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व क" ओर से / Revenue By: Shri Suman Kumar -Dr अपीलाथ" क" ओर से /Assessee By: Shri Vijay Mehta सुनवाई क" तारीख / Date Of Hearing: 28/03/2018 घोषणा क" तारीख / Date Of Pronouncement: 27/06/2018 आयकर अिधिनयम अिधिनयम,1961 क" क" धारा धारा 254(1)केकेकेके अ"तग"त अ"तग"त आदेश आदेश आयकर आयकर आयकर अिधिनयम अिधिनयम क" क" धारा धारा अ"तग"त अ"तग"त आदेश आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act)

For Appellant: Shri Vijay MehtaFor Respondent: Shri Suman Kumar -DR
Section 14ASection 254(1)

…आयकर अपीलीय अपीलीय अिधकरण अिधकरण, मुंबई मुंबई “बी बी” खंडपीठ खंडपीठ मेमेमेमे आयकर आयकर आयकर अपीलीय अपीलीय अिधकरण अिधकरण मुंबई मुंबई बी बी खंडपीठ खंडपीठ Income-tax Appellate Tribunal -“B”Bench Mumbai सव"ी राजे"",लेखा सद"य एवं अमरजीत "सह, "याियक सद"य Before S/Sh.Rajendra,Accountant Member and Amarjit Singh,Judicial Member िनधा"रण वष" वष" /Assessment Year: 2007-08 आयकर अपील सं./I.T.A./64/Mum/2011, िनधा"रण िनधा"रण िनधा"रण वष" वष" आयकर अपील सं./I.T.A./7045/Mum/2011,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2008-09 िनधा"रण िनधा"रण वष" वष" आयकर अपील सं./I.T.A./5609/Mum/2013,िनधा"रण िनधा"रण वष" वष" /Assessment Year:…

Gala Precision Technology Pvt. Ltd., Thane vs. ACIT Range - 6(3), Mumbai

The appeal of the assessee is allowed for statistical purposes"

ITA 6115/MUM/2016[2007-08]Status: DisposedITAT Mumbai15 Mar 2018AY 2007-08

Bench: Shri C.N. Prasad, Jm & Shri Manoj Kumar Aggarwal, Am आिकर अपील सं./I.T.A. No. 6115/Mum/2016 (धििाारण वर्ा / Assessment Year: 2007-08) Gala Precision Technology Private Ltd. Asstt. Commissioner Of Income Tax 102-A, Orion Business Park Range 6(3) बिाम/ Near Cine Wonder Mumbai Vs. Ghodbunder Road Majiwada, Thane (W) 400 610 स्थािी लेखा सं./जीआइआर सं./Pan/Gir No. Aaacg-1777-F (अपीलाथी /Appellant) (प्रत्यथी / Respondent) : Assessee By : Anuj Kisnadwala, Ld. Ar Revenue By : V.Vidhyadhar, Ld. Dr सुनवाई की तारीख / : 15/03/2018 Date Of Hearing घोषणा की तारीख / : /03/2018 Date Of Pronouncement

For Appellant: Anuj Kisnadwala, Ld. ARFor Respondent: V.Vidhyadhar, Ld. DR
Section 143(3)Section 145ASection 35D

…9 Lacs filed by the assessee on 31/10/2007. 3. The first issue is related with addition u/s 35D on account of Share issue expenses for Rs.1,19,315/- which has been disallowed, inter-alia, by following rulings of Apex Court rendered in M/s Broke Bond (I) Ltd. [225 ITR 798] & PSIDC [225 ITR 792]. The Ld. Authorised Representative for assessee [AR] fairly conceded that issue stood covered against the assessee by the order of Tribunal in assessee’s own case for AY 2006-07 vide ITA No.5512/Mum/2011 dated 25/07/2014, a copy of which has been placed on record. In view of admitted position, this ground of appeal stands d…

ACIT, Cir.-1(2), Pune vs. Global Infrastructure & Technologies Ltd., Pune

In the result, the appeal of Revenue in ITA

ITA 351/PUN/2007[1996-97]Status: DisposedITAT Pune28 Feb 2018AY 1996-97

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am

For Appellant: NoneFor Respondent: Mrs. Nirupama Kotru
Section 143(3)Section 271(1)(c)

…आयकर अपील"य अ"धकरण] पुणे "यायपीठ “बी” पुणे म" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM आयकर अपील सं. / ITA No.624/PUN/2004 "नधा"रण वष" / Assessment Year : 1996-97 The Dy.Commissioner of Income Tax, ………. अपीलाथ" / Circle 1(1), Pune. Appellant बनाम v/s M/s. Global Infrastructure & Technologies ……. ""यथ" / Ltd., 929, Mantri House, Respondent F.C. Road, Pune. PAN : AAACM8350N. आयकर अपील सं. / ITA No.722/PUN/2004 "नधा"रण वष" / Assessment Year : 1996-97 M/s. Global Infrastructure & Technologies ………. अपीलाथ" / Ltd., 929, Mantri House, Appel…

M/S. Global Infrastructure & Technologies Ltd., Pune vs. ITO, WD.-3(3), Pune

In the result, the appeal of Revenue in ITA

ITA 722/PUN/2004[1996-97]Status: DisposedITAT Pune28 Feb 2018AY 1996-97

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am

For Appellant: NoneFor Respondent: Mrs. Nirupama Kotru
Section 143(3)Section 271(1)(c)

…आयकर अपील"य अ"धकरण] पुणे "यायपीठ “बी” पुणे म" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM आयकर अपील सं. / ITA No.624/PUN/2004 "नधा"रण वष" / Assessment Year : 1996-97 The Dy.Commissioner of Income Tax, ………. अपीलाथ" / Circle 1(1), Pune. Appellant बनाम v/s M/s. Global Infrastructure & Technologies ……. ""यथ" / Ltd., 929, Mantri House, Respondent F.C. Road, Pune. PAN : AAACM8350N. आयकर अपील सं. / ITA No.722/PUN/2004 "नधा"रण वष" / Assessment Year : 1996-97 M/s. Global Infrastructure & Technologies ………. अपीलाथ" / Ltd., 929, Mantri House, Appel…

DCIT, Cir.-1(1), Pune vs. Global Infrastructure & Technologies Ltd., Mumbai

In the result, the appeal of Revenue in ITA

ITA 624/PUN/2004[1996-97]Status: DisposedITAT Pune28 Feb 2018AY 1996-97

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am

For Appellant: NoneFor Respondent: Mrs. Nirupama Kotru
Section 143(3)Section 271(1)(c)

…आयकर अपील"य अ"धकरण] पुणे "यायपीठ “बी” पुणे म" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM आयकर अपील सं. / ITA No.624/PUN/2004 "नधा"रण वष" / Assessment Year : 1996-97 The Dy.Commissioner of Income Tax, ………. अपीलाथ" / Circle 1(1), Pune. Appellant बनाम v/s M/s. Global Infrastructure & Technologies ……. ""यथ" / Ltd., 929, Mantri House, Respondent F.C. Road, Pune. PAN : AAACM8350N. आयकर अपील सं. / ITA No.722/PUN/2004 "नधा"रण वष" / Assessment Year : 1996-97 M/s. Global Infrastructure & Technologies ………. अपीलाथ" / Ltd., 929, Mantri House, Appel…

DCIT, Cir.-1(1), Pune vs. Mantri Housing & Constructions Ltd., Pune

In the result, the appeal of Revenue in ITA

ITA 1027/PUN/2004[1998-99]Status: DisposedITAT Pune28 Feb 2018AY 1998-99

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am

For Appellant: NoneFor Respondent: Mrs. Nirupama Kotru
Section 143(3)Section 271(1)(c)

…आयकर अपील"य अ"धकरण] पुणे "यायपीठ “बी” पुणे म" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM आयकर अपील सं. / ITA No.624/PUN/2004 "नधा"रण वष" / Assessment Year : 1996-97 The Dy.Commissioner of Income Tax, ………. अपीलाथ" / Circle 1(1), Pune. Appellant बनाम v/s M/s. Global Infrastructure & Technologies ……. ""यथ" / Ltd., 929, Mantri House, Respondent F.C. Road, Pune. PAN : AAACM8350N. आयकर अपील सं. / ITA No.722/PUN/2004 "नधा"रण वष" / Assessment Year : 1996-97 M/s. Global Infrastructure & Technologies ………. अपीलाथ" / Ltd., 929, Mantri House, Appel…

A.C.I.T. Central Circle-20, Mumbai vs. Ankur Drugs & Pharma Ltd., Mumbai

In the result appeal of the Revenue in I

ITA 7529/MUM/2011[2006-07]Status: DisposedITAT Mumbai27 Feb 2018AY 2006-07

Bench: Shri Joginder Singh & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No. 7529/Mum/2011 (नििाारण वर्ा / Assessment Year: 2006-07)

For Appellant: Shri. Vijay MehtaFor Respondent: Shri. R.P Meena, CIT DR
Section 132(1)Section 139(1)Section 153ASection 271(1)(c)Section 80I

…the case of Chadha Sugars Private Limited(supra) relied upon by the learned CIT DR by submitting that claim of expenses towards ROC fee for increase in authorised capital was held by Hon’ble Supreme Court in the case of Brooke Bond India Limited v. CIT (1997) 225 ITR 798(SC) and also in PSIIDC v. CIT reported in (1997) 225 ITR 792(SC) to be capital expenditure while the same was claimed by the taxpayer in this case to be revenue expenditure based on CA opinion and it was submitted that this was a claim which was ex-facie wrong in view of aforesaid Hon’ble Supreme Court decisions in the case of PSIIDC(supra) and B…

Assistant Commissioner of Income Tax, Circle - 4(1)(1), Bangalore vs. M/S. Karnataka State Financial Corporation Ltd., Bangalore

In the result, appeals filed by the Revenue are dismissed

ITA 888/BANG/2017[2012 - 13]Status: DisposedITAT Bangalore31 Jan 2018

Bench: Shri. Jason P. Boaz

For Appellant: Shri. A. C. Raju, CAFor Respondent: Shri. Harinder Kumar, CIT-DR-III
Section 14A

…eme Court in the matter of India Cements v. CIT [60 ITR 52] and the decision of the Hon’ble jurisdictional High Court in CIT v. ITC Hotels 334ITR 109. 08. The Ld. DR relies upon the judgment of the Hon’ble Supreme Court in Brooke Bond India Ltd v. CIT [(1997) 225 ITR 798]. 09. We have heard the rival contentions and perused the material on record. In our view, the issue is squarely covered in favour of the assessee by the Hon’ble Supreme Court in the matter of India Cements (supra) had held that the debenture when issued is a loan and therefore the expenditure incurred for issuance of debenture would be admissib…

Lakshmi Builder & Developers, Mumbai vs. ACIT 31(2), Mumbai

In the result, both the appeals are partly allowed

ITA 2997/MUM/2016[2010-11]Status: DisposedITAT Mumbai24 Jan 2018AY 2010-11

Bench: Shri Saktijit Dey & Shri G. Manjunatha

For Appellant: Shri Dinesh Vyas, Sr. CounselFor Respondent: Shri Manjunatha Swamy, CIT

…tions and perused the material on record. Learned Sr. Counsel for the assessee fairly conceded that in view of the decision of the Hon'ble Supreme Court in Punjab State Industrial Development Corporation v/s CIT, 225 ITR 792 and Brooke Bond India Ltd v/s CIT, 225 ITR 798, the expenditure incurred by the assessee has to be treated as capital in nature. In view of the aforesaid, we uphold the decision of the first appellate authority on this issue. Ground no.2 is dismissed. 6 M/s. Tata Morots Ltd. 13. In ground no.3, the assessee has challenged the disallowance of prior period expenses amounting to ` 9,87,760=54.…

ACIT (OSD) - 2(1), Mumbai vs. M/S. Tata Finance Ltd., Mumbai

In the result, both the appeals are partly allowed

ITA 2997/MUM/2006[1999-2000]Status: DisposedITAT Mumbai24 Jan 2018AY 1999-2000

Bench: Shri Saktijit Dey & Shri G. Manjunatha

For Appellant: Shri Dinesh Vyas, Sr. CounselFor Respondent: Shri Manjunatha Swamy, CIT

…tions and perused the material on record. Learned Sr. Counsel for the assessee fairly conceded that in view of the decision of the Hon'ble Supreme Court in Punjab State Industrial Development Corporation v/s CIT, 225 ITR 792 and Brooke Bond India Ltd v/s CIT, 225 ITR 798, the expenditure incurred by the assessee has to be treated as capital in nature. In view of the aforesaid, we uphold the decision of the first appellate authority on this issue. Ground no.2 is dismissed. 13. In ground no.3, the assessee has challenged the disallowance of prior period expenses amounting to ` 9,87,760=54. 14. Brief facts are, dur…

Weisser Trading Company Private Limited, Mumbai vs. Deputy Commissioner of Income Tax-1(3)(2), Mumbai

In the result, appeal is allowed in part in terms indicated hereinabove

ITA 4657/MUM/2017[2013-14]Status: DisposedITAT Mumbai18 Jan 2018AY 2013-14

Bench: Shri R.C.Sharma, Am M/S. Weisser Trading Company Vs. Dy. Commissioner Of Private Limited Income Tax – 1(3)(2), D-407, Turakia Park, M.G.Road Mumbai Opp. Swimming Pool, Kandivali (E) Mumbai – 400 067 Pan/Gir No.Aaacw8358E Appellant) .. Respondent)

Section 139(5)Section 143(3)Section 2Section 234BSection 43(5)

…IN THE INCOME TAX APPELLATE TRIBUNAL “SMC”, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM M/s. Weisser Trading Company Vs. Dy. Commissioner of Private Limited Income Tax – 1(3)(2), D-407, Turakia Park, M.G.Road Mumbai Opp. Swimming Pool, Kandivali (E) Mumbai – 400 067 PAN/GIR No.AAACW8358E Appellant) .. Respondent) Assessee by Shri Dharmesh Shah Revenue by Ms. N. Hemalatha Date of Hearing 11/01/2018 Date of Pronouncement 18/01/2018 आदेश / O R D E R PER R.C.SHARMA (A.M): This is an appeal filed by the assessee against the order of CIT(A)- 3, Mumbai dated 19/05/2017 for A.Y.2013-14 in the matter of order passed u/s…

M/S. Healthcare Global Enterprises Limited, Bangalore vs. Joint Commissioner of Income Tax, Bangalore

In the result, the appeal filed by the assessee for Assessment Year 2010-11 is dismissed

ITA 1901/BANG/2016[2010-11]Status: DisposedITAT Bangalore15 Dec 2017AY 2010-11

Bench: Shri Arun Kumar Garodia & Shri Lalit Kumar

For Appellant: Shri K.P. Srinivas, CAFor Respondent: Shri B.R. Ramesh, JCIT (DR)
Section 72ASection 79

…hi), copy available on pages 24 to 27 of the paper book. The ld. DR of revenue supported the orders of authorities below and reliance was placed by him on the judgment of Hon’ble Apex Court rendered in the case of Brooke Bond India Ltd. vs. CIT as reported in 225 ITR 798. 4. We have considered the rival submissions. We find that it is noted by CIT (A) in Para no. 4.1 of his order that the assessee company had sought private equity investment from different investors and the prospective investors had conducted various audits and due diligence study to ensure the viability of such investment. It is also noted by CI…