Champion Engineering Works Ltd. v. CIT (1971) 81 ITR 273 (Bom), CIT v. Bowrisankara Stemp Ferry Co.

165 ITR 63High Court1987#1704 most cited

What is Champion Engineering Works Ltd. v. CIT (1971) 81 ITR 273 (Bom), CIT v. Bowrisankara Stemp Ferry Co. authority for?

The case is cited for the principle that when a payment is made for a non-compete agreement which is part of a larger business transfer, the characterisation of the payment depends on whether it is for the enduring benefit of the business or for the loss of potential profits.

66

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2008 to 2025.

Also referred to as

Champion Engineering Works Ltd. v. CIT · non-compete fee · business transfer agreement · relinquishment of right · test of enduring benefit · section 10(2)(xv) · business income

Sections most often in play

Section 143(3)Section 14ASection 260ASection 271(1)(c)Section 35ABB

Issues it is cited on

relinquishment of righttest of enduring benefitsection 10(2)(xv)non-compete feebusiness transfer agreementsection 2(31)slump salesection 51going concernsection 40a(2)(b)section 40a(2)beneficial owner

Judgments citing Champion Engineering Works Ltd. v. CIT (1971) 81 ITR 273 (Bom), CIT v. Bowrisankara Stemp Ferry Co.

Harshit Finlease & Investments P.Ltd, Mumbai vs. ITO 1(1)(4), Mumbai

In the result, this appeal is partly allowed

ITA 4991/MUM/2011[2006-07]Status: DisposedITAT Mumbai03 Dec 2019AY 2006-07

Bench: Shri Shamim Yahya & Shri Pawan Singh: A.Y : 2006-07

For Appellant: Shri J.D. Mistry, Shri Harsh Kothari &For Respondent: Shri M. Rajan
Section 115JSection 143(3)Section 14ASection 154Section 234BSection 54E

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “H”, MUMBAI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER : A.Y : 2006-07 M/s. Harshit Finlease & Investments Vs. Addl. Commissioner of Income Pvt. Ltd., Tax-1(1), Mumbai (Respondent) (formerly M/s. Harshit Finlease & Investments Ltd.) The International, 5th floor, 16, New Marine Lines Cross Road No. 1, Churchgate, Mumbai 400 020. PAN : AAACH8737Q (Appellant) : A.Y : 2006-07 M/s. Harshit Finlease & Investments Vs. Income Tax Officer-1(1)(4), Pvt. Ltd., Mumbai (Respondent) (formerly M/s. Harshit Finlease & Investments Ltd.) Th…

Harshit Finlease & Investments P.Ltd, Mumbai vs. Addl CIT 1(1), Mumbai

In the result, this appeal is partly allowed

ITA 4989/MUM/2011[2006-07]Status: DisposedITAT Mumbai03 Dec 2019AY 2006-07

Bench: Shri Shamim Yahya & Shri Pawan Singh: A.Y : 2006-07

For Appellant: Shri J.D. Mistry, Shri Harsh Kothari &For Respondent: Shri M. Rajan
Section 115JSection 143(3)Section 14ASection 154Section 234BSection 54E

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “H”, MUMBAI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER : A.Y : 2006-07 M/s. Harshit Finlease & Investments Vs. Addl. Commissioner of Income Pvt. Ltd., Tax-1(1), Mumbai (Respondent) (formerly M/s. Harshit Finlease & Investments Ltd.) The International, 5th floor, 16, New Marine Lines Cross Road No. 1, Churchgate, Mumbai 400 020. PAN : AAACH8737Q (Appellant) : A.Y : 2006-07 M/s. Harshit Finlease & Investments Vs. Income Tax Officer-1(1)(4), Pvt. Ltd., Mumbai (Respondent) (formerly M/s. Harshit Finlease & Investments Ltd.) Th…

M/S Industrial Filters & Fabrics Pvt.Ltd., Indore vs. The JCIT, R-5 (Present AO: DCIT 2(1), Indore

In the result, the appeals filed by the assessee

ITA 961/IND/2016[2011-12]Status: DisposedITAT Indore23 Aug 2018AY 2011-12

Bench: Shri Kul Bharat & Shri Manish Boradassessment Year: 2007-08

Section 133(6)Section 143(3)Section 68

…urn of Income and the Annual Accounts itself. The issue being that of difference of opinion on a legal subject, no penalty should be levied. In this regard, reliance is place on the following judicial pronouncements: 1. 1. CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) 1. 1. CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) It was held that the Assessee cannot be penalized for canvassing a view different from the Departmental view and where the Assessee is merely contending for a particular…

M/S Industrial Filters & Fabrics Private Limited, Indore vs. The ACIT 2(1), Indore

In the result, the appeals filed by the assessee

ITA 753/IND/2016[2008-09]Status: DisposedITAT Indore23 Aug 2018AY 2008-09

Bench: Shri Kul Bharat & Shri Manish Boradassessment Year: 2007-08

Section 133(6)Section 143(3)Section 68

…urn of Income and the Annual Accounts itself. The issue being that of difference of opinion on a legal subject, no penalty should be levied. In this regard, reliance is place on the following judicial pronouncements: 1. 1. CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) 1. 1. CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) It was held that the Assessee cannot be penalized for canvassing a view different from the Departmental view and where the Assessee is merely contending for a particular…

M/S Industrial Filters & Fabrics Private Limited, Indore vs. The ACIT 2(1), Indore

In the result, the appeals filed by the assessee

ITA 752/IND/2016[2007-08]Status: DisposedITAT Indore23 Aug 2018AY 2007-08

Bench: Shri Kul Bharat & Shri Manish Boradassessment Year: 2007-08

Section 133(6)Section 143(3)Section 68

…urn of Income and the Annual Accounts itself. The issue being that of difference of opinion on a legal subject, no penalty should be levied. In this regard, reliance is place on the following judicial pronouncements: 1. 1. CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) 1. 1. CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) It was held that the Assessee cannot be penalized for canvassing a view different from the Departmental view and where the Assessee is merely contending for a particular…

M/S Industrial Filters & Fabrics Private Limited, Indore vs. The ACIT-2(1), Indore

In the result, the appeals filed by the assessee

ITA 293/IND/2016[2012-13]Status: DisposedITAT Indore23 Aug 2018AY 2012-13

Bench: Shri Kul Bharat & Shri Manish Boradassessment Year: 2007-08

Section 133(6)Section 143(3)Section 68

…urn of Income and the Annual Accounts itself. The issue being that of difference of opinion on a legal subject, no penalty should be levied. In this regard, reliance is place on the following judicial pronouncements: 1. 1. CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) 1. 1. CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) It was held that the Assessee cannot be penalized for canvassing a view different from the Departmental view and where the Assessee is merely contending for a particular…

M/S Industrial Filters and Fabrics Pvt. Ltd., Indore vs. The Addl. CIT- Range-5, Indore

In the result, the appeals filed by the assessee

ITA 484/IND/2012[2008-09]Status: DisposedITAT Indore23 Aug 2018AY 2008-09

Bench: Shri Kul Bharat & Shri Manish Boradassessment Year: 2007-08

Section 133(6)Section 143(3)Section 68

…urn of Income and the Annual Accounts itself. The issue being that of difference of opinion on a legal subject, no penalty should be levied. In this regard, reliance is place on the following judicial pronouncements: 1. 1. CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) 1. 1. CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) It was held that the Assessee cannot be penalized for canvassing a view different from the Departmental view and where the Assessee is merely contending for a particular…

M/S Industrial Filters & Fabrics Private Limited, Indore vs. The ACIT 2(1), Indore

In the result, the appeals filed by the assessee

ITA 754/IND/2016[2009-10]Status: DisposedITAT Indore23 Aug 2018AY 2009-10

Bench: Shri Kul Bharat & Shri Manish Boradassessment Year: 2007-08

Section 133(6)Section 143(3)Section 68

…urn of Income and the Annual Accounts itself. The issue being that of difference of opinion on a legal subject, no penalty should be levied. In this regard, reliance is place on the following judicial pronouncements: 1. 1. CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) 1. 1. CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) It was held that the Assessee cannot be penalized for canvassing a view different from the Departmental view and where the Assessee is merely contending for a particular…

M/S Industrial Filters and Fabrics Pvt. Ltd., Indore vs. The ACIT 5(1), Indore

In the result, the appeals filed by the assessee

ITA 404/IND/2012[2007-08]Status: DisposedITAT Indore23 Aug 2018AY 2007-08

Bench: Shri Kul Bharat & Shri Manish Boradassessment Year: 2007-08

Section 133(6)Section 143(3)Section 68

…urn of Income and the Annual Accounts itself. The issue being that of difference of opinion on a legal subject, no penalty should be levied. In this regard, reliance is place on the following judicial pronouncements: 1. 1. CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) 1. 1. CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) CIT Vs. Late G.D. Naidu and others (165 ITR 63) (Mad.) It was held that the Assessee cannot be penalized for canvassing a view different from the Departmental view and where the Assessee is merely contending for a particular…

M/S Gkn Driveline India Ltd, N vs. Commissioner of Income Tax, De

The appeal is dismissed with no orders as to costs

ITA/542/2005HC Delhi27 Nov 2017

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MS. JUSTICE PRATHIBA M. SINGH

Section 260A

…. The Assessee approached the Commissioner of Income Tax (Appeals) [hereinafter ‘CIT(A)’] who held that since the non- competition period was for a short term of five years the expenditure is revenue in nature. The CIT (A) relied upon CIT v. G.D. Naidu [1987] 165 ITR 63 (hereinafter ‘G.D. Naidu’) of the Madras High Court and gave relief to the Assessee to the tune of Rs.70 lakhs. 8. The ITAT vide order dated 26th October, 2004 reversed the order of the CIT(A) and restored the finding of the AO. The reasoning of the ITAT was that the Assessee was the only manufacturer in India for front wheel drive axle assembly f…

ADIT - 3(2), Mumbai vs. M/S. Linklaters (Formerly Known As Linklater & Paines), Mumbai

ITA 7085/MUM/2005[2000-2001]Status: DisposedITAT Mumbai04 Feb 2016AY 2000-2001
For Appellant: Shri Niraj ShethFor Respondent: Shri Jasbir Chauhan-DR
Section 143(3)Section 254(1)Section 271Section 271(1)(c)

…अिधकरण, ‘एल’ खंडपीठ आयकर अपीलीय अपीलीय अिधकरण खंडपीठ मुंबई मुंबई आयकर आयकर आयकर अपीलीय अपीलीय अिधकरण अिधकरण खंडपीठ खंडपीठ मुंबई मुंबई INCOME TAX APPELLATE TRIBUNAL,MUMBAI “L” BENCH सव"ी सव"ी सव"ी राजे"" सव"ी राजे"" राजे"", लेखा राजे"" लेखा लेखा सद"य लेखा सद"य सद"य एवं सद"य एवं एवं राम लाल नेगी एवं राम लाल नेगी राम लाल नेगी, , , , "याियक सद"य राम लाल नेगी "याियक सद"य "याियक सद"य "याियक सद"य Before S/Sh. Rajendra,Accountant Member & Ram Lal Negi,Judicial Member आयकर आयकर अपील अपील संसंसंसं/.ITA No.7081/Mum/2005,िनधा"रण िनधा"रण वष" वष"/Assessment Year-1996-97 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" ADIT-(IT)…

Raptakos Brett & Co. Ltd, Mumbai vs. DCIT 5(3), Mumbai

In the result, the appeal of the assessee is hereby allowed

ITA 7491/MUM/2013[2009-10]Status: DisposedITAT Mumbai04 Nov 2015AY 2009-10

Bench: S/Shri B. R. Baskaran & Amarjit Singh] आयकर अपील सं/ I.T.A. No.7491/Mum/2013

For Appellant: Bhakti Vaidya
Section 14Section 143(3)Section 14ASection 271Section 271(1)Section 271(1)(c)

…158 (SC)]. It is also further argued that in the instant case, two possible views can be taken. Therefore, in the facts and circumstances of the present case, no penalty is leviable in view of the law settled in the case of (i) CIT Vs G. D. Naidu and others [165 ITR 63) (Mad)]and (ii) CIT Vs Sivananda Steels (256 ITR 683 (Mad)] and submitted that the order of the learned CIT(A) be set aside. 4. On the other hand, the Departmental Representative [hereinafter referred to as “the DR”] has refuted the said contentions of the learned AR and submitted that the assessee has submitted inaccurate particulars of income t…

Sharp Business System vs. The Commissioner of Income Tax-III

ITA/492/2012HC Delhi05 Nov 2012

…HC:6705-DB ITA-492-12 Page 6 important factor which the Court should take into account is whether the expenditure results in capital asset. Special reliance was placed upon the decision of the Madras High Court in CIT v. Late G.D. Naidu & Ors. (1987) 165 ITR 63 (Mad) where the payments were made by the firm to the assessee for not carrying or competing with it for term-basis for five years. The High Court had there held that the expenditure was in the nature of revenue expenditure and no business had been acquired by payment of the amount. It was contended that likewise, in the present case, the non…

Shanker Trading (P) Ltd vs. The CIT

The appeals stand disposed of

ITA - 53 / 2000HC Delhi09 Jul 2012
For Appellant: Mr Ajay Vohra and Ms Kavita JhaFor Respondent: Mr Sanjeev Sabharwal and Ms Suruchi Aggarwal
Section 201

…ated Copper Mines Ltd.: 58 ITR 241 (Privy Council), V.Damodaran v. CIT Kerala 64 ITR 26(Ker.), Champion Engineering Works Ltd. v. CIT (1971) 81 ITR 273 (Bom), CIT v. Bowrisankara Stemp Ferry Co. (1973) 87 ITR 650 (AP), CIT v. Late G.D.Naidu and Ors. (1987) 165 ITR 63 (Mad), DCIT v. McDowell & Co. Ltd. 291 ITR 107 (Kar.), CIT v. Excel Industries Limited 122 ITR 995 (Bom.), Hindustan Times Ltd. v. CIT (1980) 122 ITR 977, Sarabhai M. Chemicals Pvt. Ltd. v. CIT 127 ITR 74 (Guj.), CIT v. Panbari Tea Company Limited 151 ITR 726 (P&H) & CIT v. Karam Chand Prem Chand (P) Ltd. 200 ITR 281 (Guj.). 27. The learned…

Commissioner of Income Tax Del vs. M/S Shankar Trading Co. P. Ltd

The appeals stand disposed of

ITA - 247 / 2002HC Delhi09 Jul 2012
For Appellant: Mr Ajay Vohra and Ms Kavita JhaFor Respondent: Mr Sanjeev Sabharwal and Ms Suruchi Aggarwal
Section 201

…ated Copper Mines Ltd.: 58 ITR 241 (Privy Council), V.Damodaran v. CIT Kerala 64 ITR 26(Ker.), Champion Engineering Works Ltd. v. CIT (1971) 81 ITR 273 (Bom), CIT v. Bowrisankara Stemp Ferry Co. (1973) 87 ITR 650 (AP), CIT v. Late G.D.Naidu and Ors. (1987) 165 ITR 63 (Mad), DCIT v. McDowell & Co. Ltd. 291 ITR 107 (Kar.), CIT v. Excel Industries Limited 122 ITR 995 (Bom.), Hindustan Times Ltd. v. CIT (1980) 122 ITR 977, Sarabhai M. Chemicals Pvt. Ltd. v. CIT 127 ITR 74 (Guj.), CIT v. Panbari Tea Company Limited 151 ITR 726 (P&H) & CIT v. Karam Chand Prem Chand (P) Ltd. 200 ITR 281 (Guj.). 27. The learned…

CIT vs. Shankar Trading Co Ltd

The appeals stand disposed of

ITA - 842 / 2011HC Delhi09 Jul 2012
For Appellant: Mr Ajay Vohra and Ms Kavita JhaFor Respondent: Mr Sanjeev Sabharwal and Ms Suruchi Aggarwal
Section 201

…ated Copper Mines Ltd.: 58 ITR 241 (Privy Council), V.Damodaran v. CIT Kerala 64 ITR 26(Ker.), Champion Engineering Works Ltd. v. CIT (1971) 81 ITR 273 (Bom), CIT v. Bowrisankara Stemp Ferry Co. (1973) 87 ITR 650 (AP), CIT v. Late G.D.Naidu and Ors. (1987) 165 ITR 63 (Mad), DCIT v. McDowell & Co. Ltd. 291 ITR 107 (Kar.), CIT v. Excel Industries Limited 122 ITR 995 (Bom.), Hindustan Times Ltd. v. CIT (1980) 122 ITR 977, Sarabhai M. Chemicals Pvt. Ltd. v. CIT 127 ITR 74 (Guj.), CIT v. Panbari Tea Company Limited 151 ITR 726 (P&H) & CIT v. Karam Chand Prem Chand (P) Ltd. 200 ITR 281 (Guj.). 27. The learned…

Commissioner of Income Tax vs. Shankar Trading Co Ltd

The appeals stand disposed of

ITA - 1198 / 2010HC Delhi09 Jul 2012
For Appellant: Mr Ajay Vohra and Ms Kavita JhaFor Respondent: Mr Sanjeev Sabharwal and Ms Suruchi Aggarwal
Section 201

…ated Copper Mines Ltd.: 58 ITR 241 (Privy Council), V.Damodaran v. CIT Kerala 64 ITR 26(Ker.), Champion Engineering Works Ltd. v. CIT (1971) 81 ITR 273 (Bom), CIT v. Bowrisankara Stemp Ferry Co. (1973) 87 ITR 650 (AP), CIT v. Late G.D.Naidu and Ors. (1987) 165 ITR 63 (Mad), DCIT v. McDowell & Co. Ltd. 291 ITR 107 (Kar.), CIT v. Excel Industries Limited 122 ITR 995 (Bom.), Hindustan Times Ltd. v. CIT (1980) 122 ITR 977, Sarabhai M. Chemicals Pvt. Ltd. v. CIT 127 ITR 74 (Guj.), CIT v. Panbari Tea Company Limited 151 ITR 726 (P&H) & CIT v. Karam Chand Prem Chand (P) Ltd. 200 ITR 281 (Guj.). 27. The learned…

Commissioner of Income Tax vs. Shankar Trading Co Ltd

The appeals stand disposed of

ITA - 1183 / 2010HC Delhi09 Jul 2012
For Appellant: Mr Ajay Vohra and Ms Kavita JhaFor Respondent: Mr Sanjeev Sabharwal and Ms Suruchi Aggarwal
Section 201

…ated Copper Mines Ltd.: 58 ITR 241 (Privy Council), V.Damodaran v. CIT Kerala 64 ITR 26(Ker.), Champion Engineering Works Ltd. v. CIT (1971) 81 ITR 273 (Bom), CIT v. Bowrisankara Stemp Ferry Co. (1973) 87 ITR 650 (AP), CIT v. Late G.D.Naidu and Ors. (1987) 165 ITR 63 (Mad), DCIT v. McDowell & Co. Ltd. 291 ITR 107 (Kar.), CIT v. Excel Industries Limited 122 ITR 995 (Bom.), Hindustan Times Ltd. v. CIT (1980) 122 ITR 977, Sarabhai M. Chemicals Pvt. Ltd. v. CIT 127 ITR 74 (Guj.), CIT v. Panbari Tea Company Limited 151 ITR 726 (P&H) & CIT v. Karam Chand Prem Chand (P) Ltd. 200 ITR 281 (Guj.). 27. The learned…

The Commissioner of Income Tax III vs. Shankar Trading Co.P.Ltd

The appeals stand disposed of

ITA - 1191 / 2008HC Delhi09 Jul 2012
For Appellant: Mr Ajay Vohra and Ms Kavita JhaFor Respondent: Mr Sanjeev Sabharwal and Ms Suruchi Aggarwal
Section 201

…ated Copper Mines Ltd.: 58 ITR 241 (Privy Council), V.Damodaran v. CIT Kerala 64 ITR 26(Ker.), Champion Engineering Works Ltd. v. CIT (1971) 81 ITR 273 (Bom), CIT v. Bowrisankara Stemp Ferry Co. (1973) 87 ITR 650 (AP), CIT v. Late G.D.Naidu and Ors. (1987) 165 ITR 63 (Mad), DCIT v. McDowell & Co. Ltd. 291 ITR 107 (Kar.), CIT v. Excel Industries Limited 122 ITR 995 (Bom.), Hindustan Times Ltd. v. CIT (1980) 122 ITR 977, Sarabhai M. Chemicals Pvt. Ltd. v. CIT 127 ITR 74 (Guj.), CIT v. Panbari Tea Company Limited 151 ITR 726 (P&H) & CIT v. Karam Chand Prem Chand (P) Ltd. 200 ITR 281 (Guj.). 27. The learned…

C.I.T vs. Shankar Trading Co. Pvt Ltd

The appeals stand disposed of

ITA - 731 / 2008HC Delhi09 Jul 2012
For Appellant: Mr Ajay Vohra and Ms Kavita JhaFor Respondent: Mr Sanjeev Sabharwal and Ms Suruchi Aggarwal
Section 201

…ated Copper Mines Ltd.: 58 ITR 241 (Privy Council), V.Damodaran v. CIT Kerala 64 ITR 26(Ker.), Champion Engineering Works Ltd. v. CIT (1971) 81 ITR 273 (Bom), CIT v. Bowrisankara Stemp Ferry Co. (1973) 87 ITR 650 (AP), CIT v. Late G.D.Naidu and Ors. (1987) 165 ITR 63 (Mad), DCIT v. McDowell & Co. Ltd. 291 ITR 107 (Kar.), CIT v. Excel Industries Limited 122 ITR 995 (Bom.), Hindustan Times Ltd. v. CIT (1980) 122 ITR 977, Sarabhai M. Chemicals Pvt. Ltd. v. CIT 127 ITR 74 (Guj.), CIT v. Panbari Tea Company Limited 151 ITR 726 (P&H) & CIT v. Karam Chand Prem Chand (P) Ltd. 200 ITR 281 (Guj.). 27. The learned…