CIT v. Hughes Escorts Communications Ltd.

311 ITR 253High Court2009#4031 most cited

What is CIT v. Hughes Escorts Communications Ltd. authority for?

Expenses incurred prior to business commencement but after business setup are deductible as revenue expenses, as the setting up and commencement dates of a business are not necessarily the same.

29

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2009 to 2025.

Also referred to as

CIT v. Hughes Escorts Communications Ltd. · 311 ITR 253 · setting up of business · commencement of business · revenue expenses · section 37 · previous year

Sections most often in play

Section 143(2)Section 143(3)Section 14ASection 24(b)Section 10(2)Section 143(1)Section 2(11)Section 2(34)
Read the full judgment

Issues it is cited on

section 10(2)revenue expendituresection 37(1)section 37section 14aincome from other sourcessection 10scrutiny assessmentprevious yearcompanytransferindia

Judgments citing CIT v. Hughes Escorts Communications Ltd.

Aerens Builders Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result the appeal of the assessee is allowed

ITA 2308/DEL/2010[2005-06]Status: DisposedITAT Delhi16 Dec 2015AY 2005-06

Bench: Shri J. Sudhakar Reddy & Shri A.T. Varkeya.Y. 2005-2006 Aerens Builders P.Ltd. Vs. Dcit, C.C.8 (Now Known As Aerens Jai Realty P.Ltd.) New Delhi Kailash Colony New Delhi 110 048 Pan: Aacca 6440 P (Appellant) (Respondent)

For Appellant: Shri PC YadavFor Respondent: Shri KK Jaiswal, D.R
Section 115

…set up revenue expenses has to be allowed and these include financial expenses as held by the Hon’ble Delhi High Court in CIT vs. ESPN Software Industries Ltd. reported in 301 ITR 368 (Del.) and in CIT vs. Hughes Escorts Communications Ltd. (2009) reported in 311 ITR 253 (Del.). 6.5. Applying the propositions laid down in this case laws to the facts of this case, this claim of the assessee has to be allowed. ITA 2308/Del/2010 Aerens Builders P.Ltd. A.Y. 2005-06 7. In the result the appeal of the assessee is allowed. Order pronounced in the Open Court on 16th December, 2015. (A.T. VARKEY) ACCOUNTANT MEMBER Dt…

DCIT, Circle - 8, Kolkata vs. M/S. E.I.H. Ltd., Kolkata

In the result, the appeal of the revenue in ITA NO

ITA 2182/KOL/2006[2003-04]Status: DisposedITAT Kolkata09 Dec 2015AY 2003-04

Bench: : Shri M. Balaganesh

For Appellant: Shri R.N Bajoria, Sr.Advocate &For Respondent: Shri Rajat Subhra Biswas, ld.CIT/DR
Section 143(3)Section 195Section 40Section 9(1)(vii)

…t this issue has been elaborately dealt with in the following cases :- a) CIT vs Kanoria General Dealers P Ltd – (1986) 159 ITR 524 (Cal) b) CIT vs Ramaraju Surgical Cotton Mills Ltd (1967) 63 ITR 478 (SC) c) CIT vs Hughes Escorts Communications Ltd (2009) 311 ITR 253 (Del) d) CIT vs Relaxo Footwears Ltd (2007) 293 ITR 231 (Del) – SLP by revenue against this order dismissed. The special leave petition filed by the revenue against this order is dismissed by the Supreme Court in CC 12361 / 2007 dated 3.1.2008 . e) Delhi ITAT – 15 SOT 348 (Del) Hotel Hans P Ltd vs ACIT ITA Nos. 2182/Kol/06, 57, 1876 & 1846/Ko…

Reliance Gems & Jewels Ltd, Mumbai vs. DCIT 3(3), Mumbai

In the result, the appeal filed by the assessee is allowed

ITA 3855/MUM/2013[2008-09]Status: DisposedITAT Mumbai28 Oct 2015AY 2008-09

Bench: Shri N.K. Billaiya & Shri Amarjit Singhआयकर अपील सं/ I.T.A. No.3855/Mum/2013 ("नधा"रण वष" / Assessment Year:2008-09 Reliance Gems & Jewels The Dcit 3(3), बनाम/ Ltd., 9Th Floor, Aayakar Bhavan, Vs. Maker Chamber Iv, Mumbai-400 020 222, Nariman Point, Mumbai-400 021 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacr 7404C .. (अपीलाथ" /Appellant) (""यथ" / Respondent) अपीलाथ" ओर से/ Appellant By: Shri F.V. Irani ""यथ" क" ओर से/Respondent By: Shri Vivek Anand Ojha

For Appellant: Shri F.V. IraniFor Respondent: Shri Vivek Anand
Section 28Section 3Section 37Section 37(1)

…that the assessee had certain infrastructure facilities at the relevant time. 10.6. Once again the Hon’ble High Court of Delhi had an occasion to consider a similar issue in the case of CIT Vs Hughes Escorts 6 ITA. No.3855/M/2013 Communications Ltd (2009) 311 ITR 253 (Delhi) wherein the Hon’ble High Court has held that the moment the assessee purchased VSAT equipment, it should be said that the business has been setup. 10.7. A similar view was taken in the case of Whirlpool of India Ltd 318 ITR 347 wherein the Hon’ble High Court has observed that : “The business was set up when directors were appointed, sta…

Carefour Wc&C India Private Limited vs. Deputy Commissioner of Income Tax

ITA/42/2014HC Delhi22 Sept 2014
Section 260ASection 28Section 43D

…IT, 26 ITR 151 (ii) CWT Vs. Ramaraju Surgical Cotton Mills Ltd., 63 ITR 478 (iii) CIT Vs. Sarabhai Management Corporation Limited, 192 ITR 151 (iv) Sarabhai Management Corporation Ltd. Vs. CIT, 102, ITR 25 (v) CIT Vs. Hughes Escorts Communications Ltd., 311 ITR 253 (vi) CIT Vs. Whirlpool of India Ltd., 318 ITR 347 (vii) CIT Vs. ESPN Software India (P) Ltd., 301 ITR 368 (viii) CIT Vs. Sauer Danfoss (P) Ltd., ITA No. 1367/2010 (ix) CIT Vs. Aspentech India (P) Ltd., 187 TAXMAN 25 (x) CIT Vs. E.Funds International India, 162 TAXMAN 1 (xi) CIT Vs. Dhoomketu Builders & Development Pvt. Ltd., 216 TAXMAN 76…

Omniglobe Information Tech India Pvt Ltd

ITA/257/2012HC Delhi11 Aug 2014
Section 10B

…ITA 257/2012 Page 1 of 18 $~55 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of decision: 11th August, 2014 + INCOME TAX APPEAL 257/2012 OMNIGLOBE INFORMATION TECH INDIA PVT LTD ..... Appellant Through Mr. Ajay Vohra and Ms. Kavita Jha, Advocates. versus CIT ..... Respondent Through Mr. Sanjeev Sabharwal, Sr. Standing Counsel. CORAM: HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE V. KAMESWAR RAO SANJIV KHANNA, J. (ORAL) This appeal by the assessee pertains t…

Commissioner of Income Tax Circle 18(1) vs. M/S Urban Mass Transit Ltd

ITA-84/2014HC Delhi28 Feb 2014
Section 35D

…the additional evidence adduced before it. In these circumstances, this Court is of the opinion that the formulation of law by this Court in Commissioner of Income Tax v. M/s. Hughes Escorts 2014:DHC:1112-DB ITA 84/2014 Page 6 Communications Ltd., 311 ITR 253 and CIT v. Whirlpool of India Ltd., 318 ITR 347 applies squarely to the facts of this case. So far as the submissions with regard to the amounts paid to M/s Wilbur Smith Associates - which is sought to be added back - is concerned, once the Tribunal was of the opinion that business had commenced on account of the substantial income earned b…

Commissioner of Income Tax Circle 18(1) vs. M/S Urban Mass Transit Ltd

ITA/84/2014HC Delhi28 Feb 2014
Section 35D

…the additional evidence adduced before it. In these circumstances, this Court is of the opinion that the formulation of law by this Court in Commissioner of Income Tax v. M/s. Hughes Escorts 2014:DHC:1112-DB ITA 84/2014 Page 6 Communications Ltd., 311 ITR 253 and CIT v. Whirlpool of India Ltd., 318 ITR 347 applies squarely to the facts of this case. So far as the submissions with regard to the amounts paid to M/s Wilbur Smith Associates - which is sought to be added back - is concerned, once the Tribunal was of the opinion that business had commenced on account of the substantial income earned b…

The Commissioner of Income Tax- I vs. M/s. Avon Organics Limited

ITTA/257/2012HC Telangana17 Jul 2012

Bench: GODA RAGHURAM,M.S.RAMACHANDRA RAO

C.I.T vs. Whirlpool of India Ltd

The appeal is dismissed

ITA/1073/2008HC Delhi19 Aug 2009

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE VALMIKI J. MEHTA

Section 260ASection 3

…as per Section 3 of the Income Tax is different from commencement of the business and has relied ITA No. 1073/2008 Page 4 of 6 upon the judgments of different courts including of this Court in the case of CIT Vs. Hughes Escorts Communications Ltd., 311 ITR 253. 5. This Court in the case of Hughes Escorts Communications Ltd. (supra) has clearly held that a business is set up though the same may not have commenced and the expenditure incurred after the date of setting up has to be allowed as a deduction. It was further held that the question as to when the business is set up depends on the facts…