CIT v. Delhi Cloth & General Mills Co. Ltd.

115 ITR 659High Court1978#2525 most cited

What is CIT v. Delhi Cloth & General Mills Co. Ltd. authority for?

Sponsorship expenditure, when akin to advertisement expenses, constitutes revenue expenditure and is allowable as a business deduction under the Income-tax Act.

46

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2016 to 2026.

Also referred to as

CIT v. Delhi Cloth & General Mills · 115 ITR 659 · Section 37(1) Income Tax Act · sponsorship expenses · advertisement expenses · revenue expenditure · capital expenditure · allowable business deduction · test of enduring benefit

Sections most often in play

Section 14ASection 234ASection 234BSection 35ESection 37(1)Section 115JBSection 35(2AB)Section 37

Issues it is cited on

section 35esection 145(2)dividend distribution taxtest of enduring benefitenduring benefitsection 31intangible assetsopening wdvmanagement feescapital expenditurerevenue expenditureprohibited by law

Judgments citing CIT v. Delhi Cloth & General Mills Co. Ltd.

Max Financial Service Limited, Nawanshahr vs. Principal Commissioner of Income Tax -1, Jalandhar

In the result, the appeal of the assessee is therefore partly allowed

ITA 121/ASR/2020[2015-16]Status: DisposedITAT Amritsar31 Mar 2021AY 2015-16
For Appellant: Shri Deepak ChopraFor Respondent: Smt.Prabhjot Kaur, CIT
Section 143(3)Section 263

…IN THE INCOME TAX APPELLATE TRIBUNAL, DIVISION BENCH, AMRITSAR (VIRTUAL COURT) BEFORE: SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI R.L. NEGI, JUDICIAL MEMBER ITA No. 121 (Asr)/2020 (Assessment Year : 2015-16 M/s Max Financial Services Ltd., The Pr. CIT-I., बनाम Bhai Mohan Singh Nagar, C.R. Building, Rail Majra, Tehsil Balachaur, Model Town Road, Distt Nawanshahr. Jalandhar. "थायी लेखा सं./PAN NO: AABCM1204G "नधा"रती क" ओर से/Assessee by: Shri Deepak Chopra, Shri Deepak Aggarwal Shri Rohan Khare Ms.Pratishtha Singh राज"व क" ओर से/ Revenue by: Smt.Prabhjot Kaur, CIT सुनवाई क" तार"ख/Date of Hearing : 2…

M/S. United Spirits Limited, Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

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

ITA 489/BANG/2017[2012-13]Status: DisposedITAT Bangalore29 May 2020AY 2012-13

Bench: Shri B.R. Baskaran & Shri Pavan Kumar Gadaleit(Tp)A No.489/Bang/2017 (Assessment Year: 2012-13) M/S. United Spirits Limited, Ub Towers, No.24, Vittal Mallya Road, Bangalore-560 001 ….Appellant Vs. Dy. Commissioner Of Income Tax, Circle 7(1)(1), Bangalore. ……Respondent. Assessee By: Shri Perci Pardiwala, Senior Advocate & Shri Ketan Ved, C.A. Revenue By: Shri Bipin C.N, Jcit (D.R) Date Of Hearing : 06.03.2020. Date Of Pronouncement : 29.05.2020. O R D E R Per Shri B.R. Baskaran, A.M. : The Assessee Has Filed This Appeal Challenging The Assessment Order Dated 31-01-2017 Passed By The Assessing Officer For Assessment Year 2012-13 Passed U/S 143(3) R.W.S 144C(13) Of The Act.

For Appellant: Shri Perci Pardiwala, Senior Advocate and Shri Ketan Ved, C.AFor Respondent: Shri Bipin C.N, JCIT (D.R)
Section 143(3)Section 144C(10)Section 144C(13)Section 14ASection 154Section 36(1)(iii)Section 92C

…he assessee group with a view to get visibility, that it was in nature of some kind of advertisement expenditure, that same should be allowed as revenue 31 IT(TP)A No.489/Bang/2017 . expenditure. Referring to the case of Delhi Cloth and General Mills Co.Ltd.(115 ITR 659) of the honorable Delhi High Court,the FAA allowed the appeal filed by the assessee. 3.1.a.With regard to management fee,the FAA observed that there was no doubt about the genuineness of expenditure,that the expenditure was incurred for availing infrastructure facilities administrative support,like manpower recruitment, HR services, uses of compu…

Pramod Bansal Enterprises Pvt. Ltd., Kota vs. ACIT, Kota

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

ITA 224/JPR/2017[2010-11]Status: DisposedITAT Jaipur23 Oct 2019AY 2010-11

Bench: : Shri Vijay Pal Raovk;Dj Vihy La-@Ita No. 224/Jp/2017 Fu/Kzkj.K O"Kz@Assessment Years : 2010-11 Cuke M/S. Pramod Bansal Enterprises (P) Ltd The Acit Vs. 2-Ka-14, Vigyan Nagar Circle-1 Kota Kota Lfkk;H Ys[Kk La-@Thvkbzvkj La-@Pan/Gir No.: Aadcp 7265 Q Vihykfkhz@ Appellant Izr;Fkhz@ Respondent Fu/Kzkfjrh Dh Vksj Ls @Assessee By :Shri Sharvan Kumar Gupta Jktlo Dh Vksj Ls@ Revenue By : Smt. Poonam Rai, Dcit- Dr Lquokbz Dh Rkjh[K@ Date Of Hearing : 23/09/2019 ?Kks"K.Kk Dh Rkjh[K@ Date Of Pronouncement : 28 /10/2019 Vkns'K@ Order Per Vijay Pal Rao, Jm This Appeal By The Assessee Is Directed Against The Order Dated 16-01-2017 Of Ld. Cit(A), Kota For The Assessment Year 2010-11 Wherein The Assessee Has Raised Following Grounds Of Appeal. ‘’1. That The Ao Has Grossly Erred On Law & Facts In Considering The Income At The Notional & Estimated Of Rent Of House No. 125, Mahaveer Nagar, Kota Rs. 4,04,215/- Whereas The House Was Vacant, The Ld. Cit(A) Also Erred In Upholding The Addition Made By Ao. That After Allowing Deduction U/S 24(1) The Addition Is Made For Rs. 2,82,950/-.

For Appellant: Shri Sharvan Kumar GuptaFor Respondent: Smt. Poonam Rai, DCIT- DR
Section 23Section 24Section 24(1)

…for business purpose of the assessee. Thus the assessment of income from house property by the AO is unlawful. The ld.AR of the assessee relied on the decision of Hon'ble Punjab & Haryana High Court in the case of CIT vs Delhi Cloth & General Mills Co. Ltd. 59 ITR 152. The ld.AR of the assessee further submitted that when house was used for carrying on its business or profession then annual value of such property is not chargeable to tax u/s 22 of the Act. 2.5 On the other hand, the ld. DR relied on the orders of the authorities below and submitted that the AO conducted the enquiry on spot and found that ho…

DCIT Cen Cir 4(2) Cen RG 4, Mumbai vs. Samudra Developers P.Ltd, Mumbai

In the result, appeal filed by the revenue for assessment year 2012-2013

ITA 6642/MUM/2016[2012-13]Status: DisposedITAT Mumbai27 Apr 2018AY 2012-13

Bench: Shri G.S. Pannu (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2012-13 The Deputy Commissioner Of M/S Samudra Developers Pvt. Ltd., Income Tax, 4Th Floor, Hdil Towers, Central Circle-4(2), Anant Kanekar Marg, Central Range- 4, Vs. Mumbai – 400051 Room No. 1918, 19Th Floor, Air India Building, Pan: Aaacs7992J Nariman Point, Mumbai - 400021

For Appellant: Shri Nirav Vora (AR)For Respondent: Shri Saurabh Deshpande (Sr. DR)
Section 142Section 143

…as deleted the similar addition made by the AO in the assessee’s own case for the A.Y. 2010-11 and the Ld. CIT (A) relying on the decision of the Hon’ble Delhi High Court in the case of Delhi Cloth and General Mills Company 8 Assessment Year: 2012-13 Ltd. 115 ITR 659 (Del) and the judgment of the Hon’ble Supreme Court delivered in Empire Jute Company Ltd. vs. CIT 124 ITR 1 (SC) and Alembic Chemicals Works Ltd. vs. CIT 177 ITR 377 (SC), deleted the addition made by the AO. The facts of the present case being identical, the Ld. CIT (A) consistent with his own findings aforesaid deleted the identical addition ma…

Asst CIT Cen Cir 29, Mumbai vs. Samudra Developers P.Ltd, Mumbai

ITA 5974/MUM/2013[2010-11]Status: DisposedITAT Mumbai26 Apr 2017AY 2010-11

Bench: S/Shri Rajendra & Amarjit Singhआयकर अपील अपील संसंसंसं./I.T.A./5974/Mum/2013, िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2010-11 आयकर आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" Acit –Cc-29 M/S.Samudra Developers Pvt. Ltd. Raheja Center Point,4Th Floor,294 Cst Rd. 411,Aaykar Bhavan, M K Road,Mumbai-20. Vs. Viya Nagari Marg,Santacruz, Mumbai-400 098. Pan:Aaacs 7992M (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue By: Shri. Vishwas Mundhe,Dr. Assessee By: Shri Virag H Shah-Ar. सुनवाई क" तारीख / Date Of Hearing: 24.03.2017 घोषणा क" तारीख / Date Of Pronouncement: 26.04.2017 आयकर आयकर अिधिनयम अिधिनयम,1961 क" क" धारा धारा 254(1)केकेकेके अ"तग"त अ"तग"त आदेश आदेश 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) लेखा सद"य सद"य राजे"" राजे"" केकेकेके अनुसार अनुसार Per Rajendra, Am- लेखा लेखा लेखा सद"य सद"य राजे"" राजे"" अनुसार अनुसार Challenging The Order Dated 28/11/2014,Of The Cit(A)-44,Mumbai The Assessing Officer (Ao) Has Filed The Present Appeal.Assessee-Company,Engaged In The Business Of Real Estate,Filed Its Return Of Income On 15/10/2010,Declaring Income Of Rs. 1.33 Crores.The Ao Completed The Assessment U/S.143(3)Of The Act,On 22/02/2013,Determining Its Income At Rs. 5.34 Crores.

For Appellant: Shri Virag H Shah-ARFor Respondent: Shri. Vishwas Mundhe,DR
Section 143(3)Section 254(1)

…incurred year after year by the assessee group with a view to get visibility, that it was in nature of some kind of advertisement expendi - ture,that same should be allowed as revenue expenditure. Referring to the case of Delhi Cloth and General Mills Co.Ltd.(115 ITR 659) of the honorable Delhi High Court,the FAA allowed the appeal filed by the assessee. 3.1.a.With regard to management fee,the FAA observed that there was no doubt about the genuineness of expenditure,that the expenditure was incurred for availing infrastructure facilities administrative support,like manpower recruitment, HR services, uses of comp…

Hero Motocorp Limited, New Delhi vs. JCIT, New Delhi

In the result appeal of the assessee in ITA No

ITA 1545/DEL/2015[2010-11]Status: DisposedITAT Delhi24 Oct 2016AY 2010-11

Bench: Sh. I. C. Sudhir & Shri Prashant Maharishihero Motocorp Limited, Jcit, 34, Basant Lok, Vasant Range-1, New Delhi Vs. Vihar, New Delhi Pan: Aaach0812J (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community Vs. New Delhi Centre, Basant Lok, Vasant Vihar, New Delhi-110057 (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. NC Sawain, CIT DR
Section 143Section 143(3)Section 144CSection 92C

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ―I-2‖: NEW DELHI BEFORE SH. I. C. SUDHIR, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER Hero MotoCorp Limited, JCIT, 34, Basant Lok, Vasant Range-1, New Delhi Vs. Vihar, New Delhi PAN: AAACH0812J (Appellant) (Respondent) DCIT, M/s. Hero Moto Corp. Circle-11(1), Ltd., 34, Community Vs. New Delhi Centre, Basant Lok, Vasant Vihar, New Delhi-110057 (Appellant) (Respondent) DCIT, M/s. Hero Moto Corp. Circle-11(1), Ltd., 34, Community Page 2 of 484 New Delhi Vs. Centre, Basant Lok, Vasant Vihar, New Delhi-110057 (Appellant) (Respondent) M/s. Hero Moto Corp. D…