CIT v. Associated Cement Companies Ltd.

172 ITR 257Supreme Court of India1988#814 most cited

What is CIT v. Associated Cement Companies Ltd. authority for?

An expenditure is classified as either capital or revenue; the 'enduring benefit' test is a key criterion for this distinction, and income tax law does not generally recognize deferred revenue expenditure unless specifically provided.

126

judgments rely on this decision, according to BharatTax’s citation analysis of 367,518 Indian tax judgments — from 2010 to 2026.

Also referred to as

CIT v. Associated Cement Companies Ltd. · 172 ITR 257 · capital expenditure · revenue expenditure · enduring benefit test · deferred revenue expenditure · business deductions · Section 35D · Section 32(1)(ii) · Section 40A(9)

Sections most often in play

Section 143(3)Section 254Section 115JBSection 133ASection 194ASection 201Section 201ASection 271(1)(c)

Issues it is cited on

recognised provident fundsection 50bsection 43b(f)approved gratuity fundsection 40a(9)test of enduring benefitsection 211section 35dwholly and exclusively for businesssection 32(1)(ii)enduring benefitslump sale

Judgments citing CIT v. Associated Cement Companies Ltd.

CIT vs. Casio India Ltd

Appeal is dismissed

ITA - 10 / 2011HC Delhi10 May 2011
Section 260ASection 37

…s of the assessee, it was treated as business expenditure allowable under Section 37 of the Act. The Tribunal also relied upon the judgment of Supreme Court in the cases of Calcutta Company Ltd. Vs. CIT, 37 ITR 1, CIT Vs. Associated Cement Companies Ltd, 172 ITR 257, Empire Jute Company Ltd. Vs. CIT, 124 ITR 01 and judgment of this Court in CIT Vs. Salora International Ltd. 308 ITR 199. 2011:DHC:2630-DB ITA No.10 of 2011 Page 5 of 5 17. We are in agreement with the aforesaid view taken by the Tribunal and hold that the expenditure was required to be allowed as revenue/busi…

CIT vs. Citi Financial Consumer Finance India Ltd

ITA/1820/2010HC Delhi30 Mar 2011

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE M.L. MEHTA

Section 37

…s of the assessee, it was treated as business expenditure allowable under Section 37 of the Act. The Tribunal also relied upon the judgment of Supreme Court in the cases of Calcutta Company Ltd. Vs. CIT, 37 ITR 1, CIT Vs. Associated Cement Companies Ltd, 172 ITR 257, Empire Jute Company Ltd. Vs. CIT, 124 ITR 01 and judgment of this Court in CIT Vs. Salora International Ltd. 308 ITR 199. 17. We are in agreement with the aforesaid view taken by the Tribunal and hold that the expenditure was required to be allowed as revenue/business expenditure incurred in that year. The reasons given by us while a…

CIT vs. Citi Financial Consumer Finance India Ltd

ITA - 5 / 2011HC Delhi30 Mar 2011
Section 37

…'-,--~' + % IN THE HIGH COURT OF DELHI AT NEW DELHI ITA 1974/2010 ITA 01/2011,ITA OS/2011 IUDGMENT RESERVED ON:22.03.2011 IUDGMENT DELIVERED ON:30.03.2011 ITA 1974/2010 3 THE COMMISSIONER OF INCOME TAX-V .... APPELLANT Through: Mr. Prem Lata Bansal, Sr. VERSUS Advocate with Mr. Deepak Anand, Jr. Standing Counsel CITI FINANCIALCONSUMER FIN.LTD .... RESPONDENT Through: Mr. C.S. Aggarwal, Sr. Advocate with Mr. Prakash Kumar, Advocate. ITA 01/2011 THE COMMISSIONER OF INCOME TAX-V .... APPELLANT Through: Mr. Prem Lata Bansal, Sr. VERSUS CITI FINANCIALCONSUMER FIN.L TD Through: ITA…

The Commissioner of Income Tax-II vs. Munjal Showa Ltd

Accordingly, they are dismissed without any order as to

ITA/85/2009HC Delhi06 Sept 2010
Section 143(3)

…The Bench was concerned with the transfer of the know-how. After perusing the clauses of the agreement and relying upon the decisions in CIBA of India Ltd., (supra), Alembic Chemical Works Co. Ltd. (supra), CIT v. Associated Cement Companies Ltd., [1988] 172 ITR 257 and Triveni Engineering Works Ltd. v. CIT, [1982] 136 ITR 340, the Bench came to hold as follows: “Applying the various principles that have been laid down, we find that there was in fact no absolute transfer of any right in the documentation given by Riken to the assessee. The assessee was entitled to use the technical know-how for a peri…

The Commissioner of Income Tax-II vs. Munjal Showa Ltd

Accordingly, they are dismissed without any order as to

ITA/86/2009HC Delhi06 Sept 2010
Section 143(3)

…The Bench was concerned with the transfer of the know-how. After perusing the clauses of the agreement and relying upon the decisions in CIBA of India Ltd., (supra), Alembic Chemical Works Co. Ltd. (supra), CIT v. Associated Cement Companies Ltd., [1988] 172 ITR 257 and Triveni Engineering Works Ltd. v. CIT, [1982] 136 ITR 340, the Bench came to hold as follows: “Applying the various principles that have been laid down, we find that there was in fact no absolute transfer of any right in the documentation given by Riken to the assessee. The assessee was entitled to use the technical know-how for a peri…

Commissioner of Income Tax vs. Bharat Aluminium Company Ltd

Accordingly, the same is dismissed without any order as to

ITA/930/2010HC Delhi06 Aug 2010

Bench: HON'BLE THE ACTING CHIEF JUSTICE,HON'BLE MR. JUSTICE MANMOHAN

Section 260ASection 32(1)

…ain, it is to be seen whether the expenditure incurred was part of the fixed capital of the business or part of its circulating capital.” 7. The Supreme Court in Commissioner of Income Tax, Bombay City-I Vs. Associated Cement Companies Ltd. (1988) 172 ITR 257 has held as under:- “……The first contention was that, since, as a result of the expenditure incurred, certain water pipelines were laid ITA 930/2010 Page 5 of 6 which could be regarded as capital assets, the expenditure could…