CIT v. Groz Beckert Asia Ltd.

31 Taxmann.com 155High Court2013#2751 most cited

What is CIT v. Groz Beckert Asia Ltd. authority for?

Corporate club membership fees paid by an assessee-company for a limited period, when intended for running the business and producing benefits for the company, are deductible as a business expense and not considered personal expenses.

43

judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2016 to 2025.

Also referred to as

CIT v. Groz Beckert Asia Ltd. · Groz Beckert Asia Ltd. · club membership fees deduction · corporate club fees · business expense deductibility · personal expenses disallowance · revenue expenditure club fees · Section 37(1) · Section 40A(2)(b) · business benefit expenses

Also reported as

351 ITR 196

Sections most often in play

Section 115JBSection 154Section 40(a)(ia)Section 40A(2)(b)Section 115USection 143(3)Section 14ASection 244A

Issues it is cited on

section 50(1)section 80absection 54esection 70(2)section 10(15)section 80msection 10(33)section 14a(1)section 54eclong-term capital assetsection 36(1)(viii)section 111a

Judgments citing CIT v. Groz Beckert Asia Ltd.

DCIT, Circle - 6, Kolkata vs. M/S. Nariman Finvest (P) Ltd., Kolkata

In the result, Revenue’s appeal stands dismissed and that of assessee’s CO is partly allowed

ITA 1614/KOL/2011[2007-08]Status: DisposedITAT Kolkata10 Aug 2016AY 2007-08

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Ravi

Section 143(2)Section 143(3)Section 43(5)

…IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH “C” KOLKATA Before Shri Waseem Ahmed, Accountant Member and Shri S.S.Viswanethra Ravi, Judicial Member ITA No.1614/Kol/2011 & C.O. No.25/Kol/2012 (a/o ITA No.1614/Kol/2011 Assessment Years:2008-09 DCIT,Circle-6 बनाम / Nariman Finvest Pvt. P7, Chowringhee Square, Ltd, 33/1 N.S. Road, V/s. Kolkata Kolkata-700 001 Nariman Finvest Pvt. Ltd. DCIT, Circle-6 बनाम / 33/1 N.S. Road, Kolkata- P-7, Chowringhee V/s. 700 001 Square, Kolkata [PAN No.AABCN 2859 C] .. अपीलाथ" /Appellant ""यथ" /Respondent Shri M. Jungio, JCIT-DR आवेदक क" ओर से/By Assessee Shri D.S.Damle, FCA…

Asst CIT 1(3), Mumbai vs. General Insurance Corporation of India, Mumbai

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

ITA 4926/MUM/2014[2010-11]Status: DisposedITAT Mumbai02 Mar 2016AY 2010-11

Bench: Shri C.N. Prasad & Shri Rajesh Kumarआयकर अपील सं/ I.Ta No.4926/Mum/2014 ("नधा"रण वष" / Assessment Year:2010-11 बनाम/ Acit 1(3), General Insurance Aayakar Bhavan, Corporation Of India, Vs. Mumbai-400 020 “Suraksha”, 170, J. Tata Road, Mumbai-400 020 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaacg 0615N (अपीलाथ" /Appellant) (""यथ" / Respondent) .. अपीलाथ" ओर से/ Appellant By: Shri H.S. Singh ""यथ" क" ओर से/Respondent By: Shri Farrokh V. Irani सुनवाई क" तार"ख / Date Of Hearing :10.02.2016 घोषणा क" तार"ख /Date Of Pronouncement :02.03.2016 आदेश / O R D E R Per C.N. Prasad, Jm: This Appeal Is Filed By The Revenue Against The Order Of The Ld. Cit(A)-2, Mumbai Dated 21.03.2014 Pertaining To Assessment Year 2010-11. 2. The Revenue Has Raised Following Grounds In Its Appeal:

For Appellant: Shri H.S. SinghFor Respondent: Shri Farrokh V. Irani
Section 115Section 115JSection 14ASection 2(43)Section 246ASection 44

…he smooth and efficient running of a business enterprise and did not add to the profit earning apparatus 14 of a business enterprise. Similar view has been taken by the Full Bench of of Punjab & Haryana High Court in the case of CIT Vs Groz Beckert Asia Ltd (351 ITR 196). In this case it was held that the Corporate Membership to Golf club that was obtained for running the business with a view to produce profit therefore the Corporate Membership fee paid to Golf club is a revenue expenditure. In view of the above decisions, we uphold the order of the Ld. CIT(A) deleting the disallowance. 14. The next issue is wh…

Capgemeni Business Services (I) Ltd, Mumbai vs. Asst CIT 1(2), Mumbai

ITA 7779/MUM/2011[2007-08]Status: DisposedITAT Mumbai29 Feb 2016AY 2007-08

Bench: Shri D. Karunakara Rao & Shri Sanjay Gargassessment Year: 2007-08 M/S. Capgemini Business Assistant Commissioner Of Services (India) Ltd., Income Tax-1(2), Gate No.4, Unit 19, Mumbai Godrej Industries Complex, Vs. Eastern Express Highway, Vikhroli (East), Mumbai – 400 093 Pan: Aabci 1046A (Appellant) (Respondent) Present For: Assessee By : Shri M.M. Golvala, A.R. Revenue By : Shri A.A. Khan, D.R. Date Of Hearing : 04.02.2016 Date Of Pronouncement : 29.02.2016 O R D E R

For Appellant: Shri M.M. Golvala, A.RFor Respondent: Shri A.A. Khan, D.R
Section 144C(1)Section 92A(2)(a)

…loyees i.e. CEO and Chief Engineer Operations for availing the membership facilities. He has further invited our attention to the full bench decision of the Hon’ble Punjab & Haryana High Court in the case of “CIT vs. Groz Beckert Asia Ltd.” reported as (2013) 351 ITR 196 P&H (FB), wherein, 9 M/s. Capgemini Business Services (India) Ltd. the Hon’ble High Court has held that no capital asset is created or comes into existence on account of obtaining corporate membership. The corporate membership obtained was for a limited period and it was obtained for running the business with a view to produce profit and the sai…