CIT v. Best & Co. (P.) Ltd.

60 ITR 11Supreme Court of India1966#1768 most cited

What is CIT v. Best & Co. (P.) Ltd. authority for?

Compensation received for the breach of a contract for hotel management is a capital receipt, not a trading receipt. Similarly, compensation for agreeing not to carry on competitive business or for loss of goodwill is also considered a capital receipt.

64

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2008 to 2025.

Also referred to as

CIT v. Best & Co. (P.) Ltd. · capital receipt · compensation for breach of contract · hotel management contract · loss of goodwill · non-compete agreement · capital asset

Sections most often in play

Section 143(3)Section 40(a)(ia)Section 250Section 37(1)Section 133ASection 142(1)Section 143(2)Section 148

Issues it is cited on

section 35abbdepreciation on non-compete feesection 35abtest of enduring benefitnon-compete feesection 55(2)section 35aresulting companyenduring benefitmat creditdisallowance under section 40(a)(ia)section 55

Judgments citing CIT v. Best & Co. (P.) Ltd.

Allseas Marine Contractors Sa, Mumbai vs. DDIT (It) 1(1), Mumbai

In the result, the appeal is partly allowed

ITA 4656/MUM/2015[2008-09]Status: DisposedITAT Mumbai07 Sept 2018AY 2008-09

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2008-09 Allseas Marine Contractors Dy. Director Of Income Sa C/O Nangia& Company Tax-(International) Vs. Unit No. 1101, 11Th Floor, B Taxation)-1(1) Wing, Peninsula Business Mumbai. Park, Ganpatraokadam Marg, Lower Parel, Mumbai-400013. Pan No. Aagca0967P Appellant Respondent Assessee By : Mr. Porus Kaka, Senior Advocate Revenue By : Mr. M.V. Raj Guru, Dr Date Of Hearing : 11/06/2018 Date Of Pronouncement : 07/09/2018

For Appellant: Mr. Porus Kaka, Senior AdvocateFor Respondent: Mr. M.V. Raj Guru, DR
Section 143(3)Section 44BSection 5Section 9

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “L” MUMBAI BEFORE SHRI SAKTIJIT DEY (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) Assessment Year: 2008-09 Allseas Marine Contractors Dy. Director of Income SA C/o Nangia& Company Tax-(International) Vs. Unit No. 1101, 11th floor, B Taxation)-1(1) Wing, Peninsula Business Mumbai. Park, GanpatraoKadam Marg, Lower Parel, Mumbai-400013. PAN No. AAGCA0967P Appellant Respondent Assessee by : Mr. Porus Kaka, Senior Advocate Revenue by : Mr. M.V. Raj Guru, DR Date of Hearing : 11/06/2018 Date of pronouncement : 07/09/2018 ORDER PER N.K. PRADHAN, AM This…

Deputy Commissioner of Income-Tax vs. Atlas Copco (India) Ltd., Pune

In the result, the appeal of the Revenue is dismissed

ITA 2286/PUN/2014[2005-06]Status: DisposedITAT Pune10 Jan 2018AY 2005-06

Bench: Shri D. Karunakara Rao, Am & Shri Vikas Awasthy, Jm

For Appellant: Shri R. MurlidharFor Respondent: Shri Rajeev Kumar
Section 143(3)Section 154

…ustified in holding that the issue under consideration cannot be considered as mistake apparent from record and directed the AO to delete the addition of Rs.22.50 crores as against Hon‟ble Supreme Court‟s decision in the case of CIT vs. Best & Co. (Pvt.) Ltd. 60 ITR 11 and Kettewell Bullen & Co. Ltd. Vs. CIT 53 ITR 261 and CIT vs. Hero Cycles Pvt. Ltd. (1997) 228 ITR 468? 2. The appellant craves leave to add, amend or alter any of the above grounds of appeal.” 4. Shri Rajeev Kumar representing the Department vehemently opposing the order of Commissioner of Income Tax (Appeals) submitted that the Commissioner of…

V.C. Nannapaneni vs. Commissioner of Income Tax

In the result, the appeals are allowed

ITTA/159/2005HC Telangana05 Jan 2018

Bench: C.V.NAGARJUNA REDDY,T.AMARNATH GOUD

For Appellant: Mr. K. Vasant KumarFor Respondent: Ms. K. Mamata
Section 10(3)Section 143(1)Section 143(3)

…THE HON’BLE SRI JUSTICE C.V. NAGARJUNA REDDY AND THE HON’BLE SRI JUSTICE T. AMARNATH GOUD I.T.T.A. Nos.159 and 160 of 2005 DATED:05-01-2018 Between: V.C. Nannapaneni … Appellant And Commissioner of Income Tax Hyderabad-2 Ayakar Bhavan, Basheer Bagh Hyderabad … Respondent COUNSEL FOR THE APPELLANT: Mr. K. Vasant Kumar COUNSEL FOR THE RESPONDENT: Ms. K. Mamata THE COURT MADE THE FOLLOWING: CVNR, J & TA, J ITTAs 159 & 160/2005 2 COMMON JUDGMENT: (per the Hon’ble Sri Justice C.V. Nag…

Sedco Forex International Inc. Thr. Its Constituted Attorney Mr. Navin Sarda vs. Commissioner of Income Tax Meerut

C.A. No.-004906-004906 - 2010Supreme Court30 Oct 2017

Bench: HON'BLE MR. JUSTICE A.K. SIKRI

Section 44B

…le of income tax law. Where payments are made to a non-resident outside India, for services rendered outside India, 3 (1986) 159 ITR 203 4 (1954) 25 ITR 27 (SC) 5 (2007) 288 ITR 408 (SC) = (2007) 3 SCC 481) 6 (1977) 108 ITR 335 (SC) 7 (1966) 60 ITR 11 (SC) 19 namely mobilization charges for drilling rigs from a foreign location to a location in India, the same is not chargeable to tax in India under Sections 5 and 9 of the Act and the same cannot be made chargeable to tax under Section 44BB of the Act. (b) A computation provision like Section 44BB cannot override the charging prov…

DCIT 3(2), Mumbai vs. Lml Ltd, Mumbai

In the result, appeal of the revenue stands dismissed

ITA 3666/MUM/2011[2006-07]Status: DisposedITAT Mumbai21 Jun 2016AY 2006-07

Bench: Shri G S Pannu & Shri Amit Shukla

Section 143(3)

…283 (SC) 4 CIT v Sheshasayee Bros (P) Ltd. [1999] 239 ITR 471 (Mad 5 CIT v Prabhu Dayal [1971] 82 ITR 804(SC) 6 CIT v Baaji Chitra Mandir [1985] 154 ITR 777 (AP) 7 Break, Inspector of taxes v Robson [1942] 25 Tax case 33(HL) 8 CIT v Best & Co. (P) Ltd. [1966] 60 ITR 11 (SC) 9 Genboig Union Fireclay Co Ltd v Commissioner of Inland Revenue [1922] 12 TC 427 (HL) After referring to these decisions, the Ld. CIT(A) came to the conclusion on the facts that it cannot be a case of considering the said amount of compensation as business income. Lastly, on the issue of capital gain also, he held that, since there is no co…

The ACIT RG-3(2) vs. M/S. Lml Ltd

In the result, appeal of the revenue stands dismissed

ITA 3668/MUM/2004[2000-2001]Status: DisposedITAT Mumbai21 Jun 2016AY 2000-2001

Bench: Shri G S Pannu & Shri Amit Shukla

Section 143(3)

…283 (SC) 4 CIT v Sheshasayee Bros (P) Ltd. [1999] 239 ITR 471 (Mad 5 CIT v Prabhu Dayal [1971] 82 ITR 804(SC) 6 CIT v Baaji Chitra Mandir [1985] 154 ITR 777 (AP) 7 Break, Inspector of taxes v Robson [1942] 25 Tax case 33(HL) 8 CIT v Best & Co. (P) Ltd. [1966] 60 ITR 11 (SC) 9 Genboig Union Fireclay Co Ltd v Commissioner of Inland Revenue [1922] 12 TC 427 (HL) After referring to these decisions, the Ld. CIT(A) came to the conclusion on the facts that it cannot be a case of considering the said amount of compensation as business income. Lastly, on the issue of capital gain also, he held that, since there is no co…

M/S. Lml Ltd., Mumbai vs. The Addl CIT RG.3(2)

In the result, appeal of the revenue stands dismissed

ITA 3540/MUM/2004[2000-2001]Status: DisposedITAT Mumbai21 Jun 2016AY 2000-2001

Bench: Shri G S Pannu & Shri Amit Shukla

Section 143(3)

…283 (SC) 4 CIT v Sheshasayee Bros (P) Ltd. [1999] 239 ITR 471 (Mad 5 CIT v Prabhu Dayal [1971] 82 ITR 804(SC) 6 CIT v Baaji Chitra Mandir [1985] 154 ITR 777 (AP) 7 Break, Inspector of taxes v Robson [1942] 25 Tax case 33(HL) 8 CIT v Best & Co. (P) Ltd. [1966] 60 ITR 11 (SC) 9 Genboig Union Fireclay Co Ltd v Commissioner of Inland Revenue [1922] 12 TC 427 (HL) After referring to these decisions, the Ld. CIT(A) came to the conclusion on the facts that it cannot be a case of considering the said amount of compensation as business income. Lastly, on the issue of capital gain also, he held that, since there is no co…

ADIT, Dehradun vs. M/S. Hallin Marine Uk Ltd., Dehradun

In the result, both the appeal and the cross objection filed by the assessee are dismissed and the appeal filed by the Revenue is allowed partly for statistical purposes

ITA 5290/DEL/2012[2009-10]Status: DisposedITAT Delhi20 Jan 2016AY 2009-10

Bench: Sh. H.S. Sidhu & Sh. O.P. Kantassessment Year: 2009-10 M/S. Hallin Marine Uk Ltd., Vs. Adit, Intl. Taxation, Dehradun C/O Nangia & Company, Suite 4A, Plaza M-6, Jasola, New Delhi (Pan: Aabch9433L) (Appellant) (Respondent)

Section 143(2)Section 143(3)Section 44BSection 9(1)(vii)Section 92

…260 (Bom); (9) CBDT vs. Chowgule & Co. Ltd. & Ors. (1991) 98 CTR (Kar) 124 : (1991) 192 ITR 40 (Kar); (10) V.M. Salgaocar & Bros. Ltd. vs. Deputy Controller, RBI & Ors. (1991) 93 CTR (Kar) 49 : (1991) 187 ITR 381 (Kar); (11) CIT vs. Best & Co. (P) Ltd. (1966) 60 ITR 11 (SC); (12) CIT vs. Dunlop Rubber Co. Ltd. (1982) 29 CTR (Cal) 25 : (1983) 142 ITR 493 (Cal); (13) CIT vs. Industrial Engineering Projects (P) Ltd. (1993) 109 CTR (Del) 73 : (1993) 202 ITR 1014) (Del); (14) CIT vs. Tata Engineering & Locomotive Co. Ltd. (2001) 165 CTR (Bom) 67 : (2000) 245 ITR 823 (Bom); (15) Godhra Electricity Co. Ltd. vs. CIT (199…

Hallin Marine Uk Ltd., New Delhi vs. ADIT, Dehradun

In the result, both the appeal and the cross objection filed by the assessee are dismissed and the appeal filed by the Revenue is allowed partly for statistical purposes

ITA 5217/DEL/2012[2009-10]Status: DisposedITAT Delhi20 Jan 2016AY 2009-10

Bench: Sh. H.S. Sidhu & Sh. O.P. Kantassessment Year: 2009-10 M/S. Hallin Marine Uk Ltd., Vs. Adit, Intl. Taxation, Dehradun C/O Nangia & Company, Suite 4A, Plaza M-6, Jasola, New Delhi (Pan: Aabch9433L) (Appellant) (Respondent)

Section 143(2)Section 143(3)Section 44BSection 9(1)(vii)Section 92

…260 (Bom); (9) CBDT vs. Chowgule & Co. Ltd. & Ors. (1991) 98 CTR (Kar) 124 : (1991) 192 ITR 40 (Kar); (10) V.M. Salgaocar & Bros. Ltd. vs. Deputy Controller, RBI & Ors. (1991) 93 CTR (Kar) 49 : (1991) 187 ITR 381 (Kar); (11) CIT vs. Best & Co. (P) Ltd. (1966) 60 ITR 11 (SC); (12) CIT vs. Dunlop Rubber Co. Ltd. (1982) 29 CTR (Cal) 25 : (1983) 142 ITR 493 (Cal); (13) CIT vs. Industrial Engineering Projects (P) Ltd. (1993) 109 CTR (Del) 73 : (1993) 202 ITR 1014) (Del); (14) CIT vs. Tata Engineering & Locomotive Co. Ltd. (2001) 165 CTR (Bom) 67 : (2000) 245 ITR 823 (Bom); (15) Godhra Electricity Co. Ltd. vs. CIT (199…

Commissioner of Income Tax vs. Bharti Hexacom Ltd

ITA/1328/2010HC Delhi19 Dec 2013

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE SANJEEV SACHDEVA

…+ % IN THE HIGH COURT OF DELHI AT NEW DELHI V ITA 1679/2010 Reserved on: 13"' August, 2013 Date of Decision: |1+^December, 2013 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: MrAjay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 1680/2010 COMMISSIONER OF INCOME TAX .....Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: Mr.Ajay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 114/2012 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Abhishek Maratha, Senior Sta…

CIT vs. Bharti Hexacom Limited

ITA/996/2011HC Delhi19 Dec 2013

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE SANJEEV SACHDEVA

…+ % IN THE HIGH COURT OF DELHI AT NEW DELHI V ITA 1679/2010 Reserved on: 13"' August, 2013 Date of Decision: |1+^December, 2013 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: MrAjay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 1680/2010 COMMISSIONER OF INCOME TAX .....Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: Mr.Ajay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 114/2012 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Abhishek Maratha, Senior Sta…

Commissioner of Income Tax vs. Bharti Telenet Ltd

ITA/1333/2010HC Delhi19 Dec 2013

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE SANJEEV SACHDEVA

…+ % IN THE HIGH COURT OF DELHI AT NEW DELHI V ITA 1679/2010 Reserved on: 13"' August, 2013 Date of Decision: |1+^December, 2013 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: MrAjay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 1680/2010 COMMISSIONER OF INCOME TAX .....Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: Mr.Ajay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 114/2012 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Abhishek Maratha, Senior Sta…

CIT vs. Bhartihexacom Ltd

ITA/114/2012HC Delhi19 Dec 2013

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE SANJEEV SACHDEVA

…+ % IN THE HIGH COURT OF DELHI AT NEW DELHI V ITA 1679/2010 Reserved on: 13"' August, 2013 Date of Decision: |1+^December, 2013 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: MrAjay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 1680/2010 COMMISSIONER OF INCOME TAX .....Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: Mr.Ajay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 114/2012 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Abhishek Maratha, Senior Sta…

CIT vs. Bharti Airtel Ltd

ITA/177/2012HC Delhi19 Dec 2013

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE SANJEEV SACHDEVA

…+ % IN THE HIGH COURT OF DELHI AT NEW DELHI V ITA 1679/2010 Reserved on: 13"' August, 2013 Date of Decision: |1+^December, 2013 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: MrAjay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 1680/2010 COMMISSIONER OF INCOME TAX .....Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: Mr.Ajay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 114/2012 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Abhishek Maratha, Senior Sta…

Commissioner of Income Tax vs. Bharti Hexacom Ltd

ITA - 1328 / 2010HC Delhi19 Dec 2013

…+ % IN THE HIGH COURT OF DELHI AT NEW DELHI V ITA 1679/2010 Reserved on: 13"' August, 2013 Date of Decision: |1+^December, 2013 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: MrAjay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 1680/2010 COMMISSIONER OF INCOME TAX .....Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: Mr.Ajay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 114/2012 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Abhishek Maratha, Senior Sta…

CIT vs. Bharti Cellular Ltd

ITA - 1679 / 2010HC Delhi19 Dec 2013

…+ % IN THE HIGH COURT OF DELHI AT NEW DELHI V ITA 1679/2010 Reserved on: 13"' August, 2013 Date of Decision: |1+^December, 2013 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: MrAjay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 1680/2010 COMMISSIONER OF INCOME TAX .....Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: Mr.Ajay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 114/2012 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Abhishek Maratha, Senior Sta…

Commissioner of Income Tax vs. Bharti Hexacom Ltd

ITA - 1336 / 2010HC Delhi19 Dec 2013

…ITA 1336/2010 & conn. cases. Page 1 of 46 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA No. 1336/2010 Reserved on: 13th August, 2013 % Date of Decision: 19th December, 2013 COMMISSIONER OF INCOME TAX ..... Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel versus BHARTI HEXACOM LTD ..... Respondent Through: Mr.Ajay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 1679/2010…

CIT vs. Bharti Cellular Ltd

ITA - 1680 / 2010HC Delhi19 Dec 2013

…+ % IN THE HIGH COURT OF DELHI AT NEW DELHI V ITA 1679/2010 Reserved on: 13"' August, 2013 Date of Decision: |1+^December, 2013 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: MrAjay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 1680/2010 COMMISSIONER OF INCOME TAX .....Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: Mr.Ajay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 114/2012 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Abhishek Maratha, Senior Sta…

Khanna and Annadhanam vs. Commissioner of Income Tax

In the result we answer the substantial question of law by holding

ITA - 1286 / 2008HC Delhi29 Jan 2013
For Appellant: Mr Ajay Vohra, Ms Kavita Jha and Mr SomnathFor Respondent: Mr Sanjeev Sabharwal, Sr. Standing Counsel with Mr
Section 260A

…ITA No.1286 /2008 Page 1 of 9 THE HIGH COURT OF DELHI AT NEW DELHI % Judgment delivered on: 29.01.2013 + ITA No.1286/2008 KHANNA AND ANNADHANAM .......Appellant versus COMMISSIONER OF INCOME TAX .......Respondent Advocates who appeared in this case: For the Appellant : Mr Ajay Vohra, Ms Kavita Jha and Mr Somnath Shukla, Advocates. For the Respondent : Mr Sanjeev Sabharwal, Sr. Standing Counsel with Mr Puneet Gupta, Jr Standing Counsel. CORAM:- HON’BLE MR JUSTICE BADAR DURREZ AHMED HON’BLE MR JUSTICE R.V.EASWAR JUDGMENT…

Khanna and Annadhanam vs. Commissioner of Income Tax

In the result we answer the substantial question of law by holding

ITA/1286/2008HC Delhi29 Jan 2013
For Appellant: Mr Ajay Vohra, Ms Kavita Jha and Mr SomnathFor Respondent: Mr Sanjeev Sabharwal, Sr. Standing Counsel with Mr
Section 260A

…ITA No.1286 /2008 Page 1 of 9 THE HIGH COURT OF DELHI AT NEW DELHI % Judgment delivered on: 29.01.2013 + ITA No.1286/2008 KHANNA AND ANNADHANAM .......Appellant versus COMMISSIONER OF INCOME TAX .......Respondent Advocates who appeared in this case: For the Appellant : Mr Ajay Vohra, Ms Kavita Jha and Mr Somnath Shukla, Advocates. For the Respondent : Mr Sanjeev Sabharwal, Sr. Standing Counsel with Mr Puneet Gupta, Jr Standing Counsel. CORAM:- HON’BLE MR JUSTICE BADAR DURREZ AHMED HON’BLE MR JUSTICE R.V.EASWAR JUDGMENT…