CIT v. J.K. Synthetics Ltd.

309 ITR 371High Court2009#964 most cited

What is CIT v. J.K. Synthetics Ltd. authority for?

The Delhi High Court laid down broad guidelines for distinguishing between capital and revenue expenditure, which were implicitly approved by the Supreme Court when it dismissed the Special Leave Petition against this decision. These guidelines assist in classifying business expenses as revenue in nature, particularly when assessing the enduring benefit test.

111

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2009 to 2025.

Also referred to as

CIT v. J.K. Synthetics Ltd. · 309 ITR 371 · Delhi High Court 2009 · capital expenditure · revenue expenditure · enduring benefit test · expenditure classification guidelines · Section 143(3) assessment · software development expense · business deduction

Sections most often in play

Section 1961Section 143(3)Section 142(1) of Income Tax ActSection 143(1)Section 143(1) of Income Tax ActSection 143(3) of Income Tax ActSection 144CSection 144C of Income Tax Act

Issues it is cited on

section 57(i)section 2(d)section 35abbtest of enduring benefitsection 46section 46asection 35dsection 36(1)(viia)enduring benefitsection 35deduction under section 80iasection 10(34)

Judgments citing CIT v. J.K. Synthetics Ltd.

Swaro vs. Ki India Pvt. Ltd., New Delhi

In the result, all the appeals of the assessee and the Revenue are allowed for statistical purpose

ITA 964/DEL/2016[2011-12]Status: DisposedITAT Delhi25 Jul 2019AY 2011-12

Bench: Shri Pramod Kumar & Shri K. Narasimha Chary

For Appellant: S/Sh Kamal Sawhney &For Respondent: Shri Rakesh Kumar, Sr. DR
Section 143(3)Section 144CSection 92C

…xpenses are incurred. 26. We, therefore, while respectfully following the decision of the Hon’ble Delhi High Court in the case of CIT vs. Asahi India Safety Glass Ltd (2011) 246 ITR 329 (Delhi) and the guidelines laid down in the case of CIT vs. JK synthetics 309 ITR 371 hold that the Software and Electronic Data Processing (“EDP”) charges incurred by the assessee are Revenue in nature and the assessee is entitled to claim the same as allowable deduction. We, therefore, delete the addition made on this account. 27. In respect of Assessment Year 2011-12, the assessee claims to have incurred expenditure to the tun…

Swaro vs. Ki India Pvt. Ltd., New Delhi

In the result, all the appeals of the assessee and the Revenue are allowed for statistical purpose

ITA 2579/DEL/2017[2009-10]Status: DisposedITAT Delhi25 Jul 2019AY 2009-10

Bench: Shri Pramod Kumar & Shri K. Narasimha Chary

For Appellant: S/Sh Kamal Sawhney &For Respondent: Shri Rakesh Kumar, Sr. DR
Section 143(3)Section 144CSection 92C

…xpenses are incurred. 26. We, therefore, while respectfully following the decision of the Hon’ble Delhi High Court in the case of CIT vs. Asahi India Safety Glass Ltd (2011) 246 ITR 329 (Delhi) and the guidelines laid down in the case of CIT vs. JK synthetics 309 ITR 371 hold that the Software and Electronic Data Processing (“EDP”) charges incurred by the assessee are Revenue in nature and the assessee is entitled to claim the same as allowable deduction. We, therefore, delete the addition made on this account. 27. In respect of Assessment Year 2011-12, the assessee claims to have incurred expenditure to the tun…

ACIT, New Delhi vs. M/S. Swarovski India Pvt. Ltd., Gurgaon

In the result, all the appeals of the assessee and the Revenue are allowed for statistical purpose

ITA 1055/DEL/2016[2011-12]Status: DisposedITAT Delhi25 Jul 2019AY 2011-12

Bench: Shri Pramod Kumar & Shri K. Narasimha Chary

For Appellant: S/Sh Kamal Sawhney &For Respondent: Shri Rakesh Kumar, Sr. DR
Section 143(3)Section 144CSection 92C

…xpenses are incurred. 26. We, therefore, while respectfully following the decision of the Hon’ble Delhi High Court in the case of CIT vs. Asahi India Safety Glass Ltd (2011) 246 ITR 329 (Delhi) and the guidelines laid down in the case of CIT vs. JK synthetics 309 ITR 371 hold that the Software and Electronic Data Processing (“EDP”) charges incurred by the assessee are Revenue in nature and the assessee is entitled to claim the same as allowable deduction. We, therefore, delete the addition made on this account. 27. In respect of Assessment Year 2011-12, the assessee claims to have incurred expenditure to the tun…

M/S. Mahle Filter Systems (India) Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 314/DEL/2015[2009-10]Status: DisposedITAT Delhi04 Jul 2019AY 2009-10

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Ms. Rinku Singh, Sr. DR
Section 10(33)Section 14ASection 24Section 37(1)

…1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘E’ BENCH, NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No. 314/DEL/2015 [A.Y 2009-10] M/s Mahle Filter Systems Pvt Ltd Vs. The Addl. C.I.T 1, Sri Aurobindo Marg, Range– 6, Circle 6(1) New Delhi New Delhi PAN: AAACP 5890 Q ITA No. 6679/DEL/2014 [A.Y 2009-10] The D.C.I.T Vs. M/s Mahle Filter Systems Pvt Ltd Circle – 6(1) 1, Sri Aurobindo Marg New Delhi New Delhi PAN: AAACP 5890 Q (Applicant) (Respondent) Assessee By : Shri Ajay Vohra, Sr. Adv Shri Anshul Sachar, Adv Shri Karan Jain, CA Department By : Ms. Ri…

DCIT, New Delhi vs. M/S. Mahle Filter Systems Pvt. Ltd., New Delhi

In the result, the appeal of the assessee in ITA No

ITA 6679/DEL/2014[2009-10]Status: DisposedITAT Delhi04 Jul 2019AY 2009-10

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Ms. Rinku Singh, Sr. DR
Section 10(33)Section 14ASection 24Section 37(1)

…1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘E’ BENCH, NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No. 314/DEL/2015 [A.Y 2009-10] M/s Mahle Filter Systems Pvt Ltd Vs. The Addl. C.I.T 1, Sri Aurobindo Marg, Range– 6, Circle 6(1) New Delhi New Delhi PAN: AAACP 5890 Q ITA No. 6679/DEL/2014 [A.Y 2009-10] The D.C.I.T Vs. M/s Mahle Filter Systems Pvt Ltd Circle – 6(1) 1, Sri Aurobindo Marg New Delhi New Delhi PAN: AAACP 5890 Q (Applicant) (Respondent) Assessee By : Shri Ajay Vohra, Sr. Adv Shri Anshul Sachar, Adv Shri Karan Jain, CA Department By : Ms. Ri…

Kee Pharma Ltd., New Delhi vs. ITO, New Delhi

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

ITA 6092/DEL/2015[2011-12]Status: DisposedITAT Delhi16 Apr 2019AY 2011-12

Bench: Shri R.K. Panda & Shri Kuldip Singhassessment Year: 2011-12 Kee Pharma Ltd., Vs Ito, 3Rd Floor, A-8, Ward-14(3), Naraina Industrial Area Phase-Ii, New Delhi. New Delhi. Pan: Aaack0120C

For Appellant: Shri Ashish Goel &For Respondent: Ms Rinku Singh, Sr. DR
Section 143(3)

…to manufacture the drug Atorvastatin dated 18th May, 2009. 6. However, the ld.CIT(A) was not satisfied with the arguments advanced by the assessee. Relying on the decision of the Hon'ble Delhi High Court in the case of CIT vs. J.K. Synthetics Ltd. reported in 309 ITR 371 (Del), he held that the Assessing Officer was justified in treating the R&D expenditure as capital in nature. While holding so, he further noted that in view of the ‘absolute transfer of all technical knowledge to the assessee, the right of the assessee to sell/resell/licence the design or the process to a third party as well as the exclusive ri…

ACIT, New Delhi vs. M/S Continental India Ltd., Meerut

ITA 207/DEL/2016[2010-11]Status: DisposedITAT Delhi19 Mar 2019AY 2010-11

Bench: Shri Kuldip Singh & Shri Dr. M.L.Meena

For Appellant: Sh. Rihit Jain, Adv., Sh. Deepesh Jain, C.AFor Respondent: Smt. Rinku Singh, Sr. DR
Section 32(1)(ii)Section 37

…Industries Ltd. (Supra) decided the identical issue of transfer of technical know- how and allowed the payment of the same as revenue expenditure by relying upon decision rendered by Hon’ble Delhi High Court in case cited as CIT vs. J.K.Synthetics Ltd. [2009] 309 ITR 371 (Delhi) by returning following findings :- “5. In CIT v. J. K. Synthetics Ltd. : [2009] 309 ITR 371 (Delhi), after elaborately discussing the entire case law on the subject, the court culled out the broad principles to determine as to whether expenditure in a particular case would be capital or revenue expenditure. One of the principles enumerat…

Maruti Suzuki India Ltd., New Delhi vs. Addl. CIT, New Delhi

Appeal of the assessee is partly allowed for statistical purpose

ITA 467/DEL/2014[2009-10]Status: DisposedITAT Delhi17 Oct 2018AY 2009-10

Bench: Shri R. K. Panda & Ms Suchitra Kamblei.T.A .No. 467/Del/2014 (A.Y 2009-10)

Section 143(3)Section 144CSection 144C(5)Section 43Section 43B

…v. Sharda Motor Industrial Limited: 319 ITR 109 (Del) • • Climate Systems India Limited v. CIT: 319 ITR 113 (Del) Shriram Pistons and Rings Limited v. CIT: 307 ITR 363 (Del) • • CIT v Lumax Industries Limited 173 Taxman 390 (Del) • CIT v. J.K. Synthetics Ltd. 309 ITR 371 (Del) • CIT v. Munjal Showa Ltd.: 329 ITR 449 (Del) • CIT v. Denso India P. Ltd.: 232 Taxman 437 (Del.) • CIT v. Modi Revlon (P) Ltd : 210 Taxman 161(MAG.) (Del.) • CIT v. Prem Heavy Engineering Works P. Limited: 282 ITR 11 (All.) • CIT v. Artos Breweries Ltd : [2013] 215 Taxman 80 (AP) • CIT v. Essel Propack 325 ITR 185 (Bom) CIT v. Eicher Motor…

M/S Hilton Roulunds Ltd vs. Commissioner of Income Tax

ITA/325/2005HC Delhi20 Apr 2018

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…(Del), the State Electricity Board had set up electricity lines for which service charges were paid by the Assessee. This Court held that the expenditure for the same should be held to be revenue expenditure. 21. In CIT v. J.K. Synthetics Ltd. (2009) 309 ITR 371 (Del) (hereinafter, „JK Synthetics‟), this Court, dealing with a case where an Indian Company had acquired a license from an Italian Company for use of technical knowledge and user of its patents and trade marks, held as under: “31. An overall view of the judgments of the Supreme Court, as well as of the High Courts would show that the fol…

DCIT, New Delhi vs. M/S. Delhi International Airport Pvt. Ltd., New Delhi

In the result appeal of the revenue in ITA No

ITA 4202/DEL/2013[2007-08]Status: DisposedITAT Delhi14 Dec 2017AY 2007-08

Bench: Shri Amit Shukla & Shri Prashant Maharishiassessment Year: 2007-08 Acit, Vs. M/S. Delhi International Airport Pvt. Ltd. Circle 10(1) Udaan Bhawan, Terminal 1B, New Delhi Indira Gandhi International Airport, New Delhi. Pan No. Aaccd3570F (Appellant) (Respondent) Assessment Year: 2007-08 Dcit, Vs. M/S. Delhi International Airport Pvt. Ltd. Circle 10(1) Udaan Bhawan, Terminal 1B, New Delhi Indira Gandhi International Airport, New Delhi. Pan No. Aaccd3570F (Appellant) (Respondent) Co No. 226/Del/2011 (Arising Ita No.2720/Del/2011) Assessment Year: 2007-08

For Appellant: Shri S.E. Dastur, Sr. Advocate and Shri Ankit Agrawal, CAFor Respondent: Ms. Rachna Singh, CIT(DR)
Section 143(3)Section 271(1)(c)Section 80I

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”: NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER Assessment Year: 2007-08 ACIT, Vs. M/s. Delhi International Airport Pvt. Ltd. Circle 10(1) Udaan Bhawan, Terminal 1B, New Delhi Indira Gandhi International Airport, New Delhi. PAN No. AACCD3570F (Appellant) (Respondent) Assessment Year: 2007-08 DCIT, Vs. M/s. Delhi International Airport Pvt. Ltd. Circle 10(1) Udaan Bhawan, Terminal 1B, New Delhi Indira Gandhi International Airport, New Delhi. PAN No. AACCD3570F (Appellant) (Respondent) CO No. 226/DEL/2011 (Arising…

ACIT, New Delhi vs. M/S Delhi International Airport Pvt. Ltd., New Delhi

In the result appeal of the revenue in ITA No

ITA 2720/DEL/2011[2007-08]Status: DisposedITAT Delhi14 Dec 2017AY 2007-08

Bench: Shri Amit Shukla & Shri Prashant Maharishiassessment Year: 2007-08 Acit, Vs. M/S. Delhi International Airport Pvt. Ltd. Circle 10(1) Udaan Bhawan, Terminal 1B, New Delhi Indira Gandhi International Airport, New Delhi. Pan No. Aaccd3570F (Appellant) (Respondent) Assessment Year: 2007-08 Dcit, Vs. M/S. Delhi International Airport Pvt. Ltd. Circle 10(1) Udaan Bhawan, Terminal 1B, New Delhi Indira Gandhi International Airport, New Delhi. Pan No. Aaccd3570F (Appellant) (Respondent) Co No. 226/Del/2011 (Arising Ita No.2720/Del/2011) Assessment Year: 2007-08

For Appellant: Shri S.E. Dastur, Sr. Advocate and Shri Ankit Agrawal, CAFor Respondent: Ms. Rachna Singh, CIT(DR)
Section 143(3)Section 271(1)(c)Section 80I

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”: NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER Assessment Year: 2007-08 ACIT, Vs. M/s. Delhi International Airport Pvt. Ltd. Circle 10(1) Udaan Bhawan, Terminal 1B, New Delhi Indira Gandhi International Airport, New Delhi. PAN No. AACCD3570F (Appellant) (Respondent) Assessment Year: 2007-08 DCIT, Vs. M/s. Delhi International Airport Pvt. Ltd. Circle 10(1) Udaan Bhawan, Terminal 1B, New Delhi Indira Gandhi International Airport, New Delhi. PAN No. AACCD3570F (Appellant) (Respondent) CO No. 226/DEL/2011 (Arising…

Maruti Suzuki India Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, the appeal of the assessee is allowed in part for statistical purposes

ITA 6021/DEL/2012[2008-09]Status: DisposedITAT Delhi09 Nov 2017AY 2008-09

Bench: Shri N.K. Saini & Shri K.N. Charry

Section 143(3)Section 144CSection 144C(5)Section 14ASection 35DSection 43BSection 92C

…dustrial Limited: 319 ITR 109 (Del), Climate Systems India Limited ITA No.-6021/Del/2012 v. CIT: 319 ITR 113 (Del), Shriram Pistons and Rings Limited v. CIT: 307 ITR 363 (Del), CIT v Lumax Industries Limited 173 Taxman 390 (Del), CIT v. J.K. Synthetics Ltd. 309 ITR 371 (Del), CIT v. Munjal Showa Ltd. : 329 ITR 449 (Del), CIT v. Hero Honda Motors Ltd.: 372 ITR 481 (Del.), CIT v. Denso India P. Ltd.: 232 Taxman 437 (Del.) , CITv. Modi Revlon (P) Ltd : 210 Taxman 161(MAG.) (Del.), CIT v. Prem Heavy Engineering Works P. Limited: 282 ITR 11 (All.), CIT v. Artos Breweries Ltd : [2013] 215 Taxman 80 (AP), CIT v. Essel…

M/S. Agarwal'S Eye Hospital Ltd., Chennai vs. Addl. CIT, Chennai

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 2279/CHNY/2016[2011-12]Status: DisposedITAT Chennai30 May 2017AY 2011-12

Bench: Shri Duvvuru Rl Reddy & Shri D.S.Sunder Singh

For Respondent: Mr.Shiva Srinivas, JCIT
Section 32

…usion, ratios of several case laws including M/s. Assam Bengal Cement Co. Ltd vs. CIT (27 ITR 34) (SC), CIT vs. M/s.Coal Shipments Ltd (82 ITR 902) (SC), Punjab State Industrial Development Corporation Ltd vs. CIT (225 ITR 792 (SC), CIT vs. JK Synthetics Ltd (309 ITR 371 ) and ITAT, Delhi, Special Bench in the case of Tecumseh India (P) Ltd vs Addl. CIT (2010) 127 ITD 1/5 ITR (Trib) (150) (Delhi)(SB). The ITAT while holding the expenditure being capital in nature, rejected the plea that it was eligible for depreciation as an “intangible asset” u/s.32(1)(ii). Amongst other reasons assigned, it was held that non co…

Empire Industries Ltd, Mumbai vs. Addl CIT RG 6(2), Mumbai

Appeal stands partly allowed in terms of our above order

ITA 4065/MUM/2013[2009-10]Status: DisposedITAT Mumbai17 May 2017AY 2009-10

Bench: Shri Mahavir Singh, Jm & Shri Manoj Kumar Aggarwal, Am आयकर अपील सं./I.T.A. No. 4065/Mum/2013 (िनधा"रण वष" / Assessment Year: 2009-10) Empire Industries Limited Additional Commissioner Of Income Tax Empire House बनाम/ 414, Senapati Bapat Marg Range 6(2) Lower Parel Aaykar Bhawan Vs. Mumbai – 400 013 M.K.Road Mumbai-400 020 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaace-2757-R (अपीलाथ" /Appellant) (""थ" / Respondent) :

For Appellant: K.K.Ved & N.A.Patade, Ld. ARsFor Respondent: Naveen Gupta, Ld. DR
Section 143(3)Section 69ASection 69C

…in cases which deal with technology and software application, which do not in any manner supplant the source of income or added to the fixed capital of the assessee. [See Alembic Chemical Works Co. Ltd. vs CIT (1989) 177 ITR 377; CIT vs J.K. Synthetics (2009) 309 ITR 371 at page 412 and CIT Vs. Indian Visit.com (supra)]. 9.1. This is the approach which the Supreme Court has applied even in cases where there is a once for all or a lump sum payment. What is to be seen in the facts of this case, as already noticed by ushereinabove, that the assessing officer as a matter of fact has returned a finding that the expend…

M/S Hero Honda Motors Ltd, New Delhi vs. DCIT, New Delhi

In the result, appeal filed by the assessee is allowed

ITA 2148/DEL/2009[2004-05]Status: DisposedITAT Delhi02 Feb 2017AY 2004-05

Bench: Sh C.M.Garg & Shri Prashant Maharishihero Honda Motors Ltd, Dcit, 34, Basant Lok, Vasant Vihar, Circle-12(1), Vs. New Delhi New Delhi Pan:Aaacg0812J (Appellant) (Respondent)

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. AK Saroha, CIT DR
Section 143(3)Section 195Section 263Section 32Section 37(1)Section 40Section 9

…The Supreme Court in Scientific Engg. (supra) had not answered the question whether the expenditure was capital or revenue in nature. A detailed discussion on the said aspect is to be found in the decision of this court in CIT v. J. K. Synthetics Ltd. [2009] 309 ITR 371 (Delhi) ; [2009] 176 Taxman 355 (Delhi), wherein the principles to distinguish the capital and revenue expenditure Hero Honda Motors Ltd V DCIT 2148/del/2009 A Y 2004-05 Appeal Against Order u/s 263 of The ACT Page 21 of 34 stand set out in paragraph 38. We would only like to refer to clauses 5 and 6 thereof, which reads as under (page 412 of 30…

Fluor Daniel India Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

In the result, the appeal is allowed partly

ITA 5493/DEL/2010[2006-07]Status: DisposedITAT Delhi06 Jan 2017AY 2006-07

Bench: Sh. I.C. Sudhir & Sh. O.P. Kantassessment Year: 2006-07 Vs. Dcit, Circle 11(1), Room No. M/S. Flour Daniel India Pvt. Ltd., 6Th Floor, Building No. 8C, Dlf 313, 3Rd Floor, C.R. Building, I.P. Cyber City, Dlf City Phase-Ii, Estate, New Delhi Gurgaon Pan : Aaacf0927G (Appellant) (Respondent) Appellant By Sh. Himanshu Shekhar Sinha, Advocate Respondent By Sh. T.M. Shiva Kumar, Cit(Dr) Date Of Hearing 01.11.2016 Date Of Pronouncement 06.01.2017 Order Per O.P. Kant, A.M.: This Appeal Filed By The Assessee Arises Out Of The Order Dated 30/09/2010 Passed By The Learned Assessing Officer (‘Ao') Under Section 143(3) Read With Section 144C Of The Income- Tax Act, 1961 (For Short ‘The Act’) For Assessment Year 2006-07 . This Order Was Passed By The Assessing Officer In Compliance To The Directions Issued By The Dispute Resolution Panel (Drp) Dated 21/09/2010. The Grounds Of Appeal Raised By The Assessee Are As Under:

Section 143(3)Section 144CSection 271Section 32Section 92Section 92C

…sed the relevant material on record including the judgment of the Hon’ble High Court and Supreme Court on the issue in dispute. The Hon’ble High Court after considering the principles laid down in the case of Commissioner of Income Tax Vs. JK Synthetics Ltd., 309 ITR 371 and other decisions upheld the finding of the Tribunal that the expenditure in question was revenue in nature. We also find that special leave petition filed by the Department against the said decision of the Hon’ble jurisdictional High Court has also been dismissed by the Hon’ble Supreme Court. Thus respectfully following the decision of the Hon…

ITO, New Delhi vs. M/S. Modi Apollo International Group Pvt. Ltd., New Delhi

In the result, both the appeals of the Revenue for A

ITA 223/DEL/2011[2007-08]Status: DisposedITAT Delhi30 Nov 2016AY 2007-08

Bench: : Shri L.P. Sahu & Smt. Beena Pillai

For Appellant: Sh. Ajay Vohra, Sr. Advocate &For Respondent: Shri Rajesh Kumar, Sr. DR
Section 143(1)Section 195Section 35ASection 40

…. Sharda Motor Industries Ltd: 319 ITR 109 (Del.) • Climate Systems India Ltd, vs. CIT : 319 ITR 113 (Del.) • G4S Securities System India (P) Ltd. v. CIT : 338 ITR 46 (Del.) • CIT v. Lumax Industries Limited: 173 Taxman 390 (Del.) • CIT v J.K. Synthetics Ltd: 309 ITR 371 (Del.) - SLP dismissed vide order dated 16.11.2009 in S.L.P.(C) No.17346 of 2009 • CIT v. Ciba India Ltd: 69 ITR 692 (SC) • Alembic Chemical Works Co. Ltd. vs. CIT: 177 ITR 377 • CIT v Shriram Pistons and Rings Limited -CC 12154/2009 (Supreme Court) (dismissing the SLP filed by the revenue against the order of the Delhi High Court in ITA No. 167…

DCIT, Gurgaon vs. M/S. Mitsubishi Electric Automotive India Pvt. Ltd., Gurgaon

In the result, the appeals of the Revenue are dismissed

ITA 5884/DEL/2014[2009-10]Status: DisposedITAT Delhi19 Oct 2016AY 2009-10

Bench: Shri G.D. Agrawalbefore Shri G.D. Agrawal & And Before Shri Before Shri G.D. Agrawalg.D. Agrawal & And Shri Sudhanshu Srivastava Shri Sudhanshu Srivastavashri Sudhanshu Srivastava Shri Sudhanshu Srivastava

For Appellant: Shri Piyush Jain, CIT-DRFor Respondent: Ms. Bhavita Kumar, Advocate
Section 148

…ms of its payment in light of the principles laid down by the Supreme Court and High Court and in due deference to decisions in the case of Alembic Chemical Works Co Ltd v CIT, 177 ITR 377 (SC) supra and Delhi High Court in the case of CIT v JK Synthetics Ltd 309 ITR 371, Shri Refrigeration Industries Ltd v CIT 127 ITR 746, Triveni Engr Works Ltd v CIT 136 ITR 340 Ciba of India 69 ITR 692 Hon'ble Supreme Court and other DRP concludes that royalty paid is revenue in nature. AO is directed to allow it accordingly.” 9. The above decision of DRP has been accepted by the Revenue and has become final. In view of the a…

DCIT, Gurgaon vs. M/S. Mitsubishi Electric Automotive India Pvt. Ltd., Gurgaon

In the result, the appeals of the Revenue are dismissed

ITA 1267/DEL/2014[2008-09]Status: DisposedITAT Delhi19 Oct 2016AY 2008-09

Bench: Shri G.D. Agrawalbefore Shri G.D. Agrawal & And Before Shri Before Shri G.D. Agrawalg.D. Agrawal & And Shri Sudhanshu Srivastava Shri Sudhanshu Srivastavashri Sudhanshu Srivastava Shri Sudhanshu Srivastava

For Appellant: Shri Piyush Jain, CIT-DRFor Respondent: Ms. Bhavita Kumar, Advocate
Section 148

…ms of its payment in light of the principles laid down by the Supreme Court and High Court and in due deference to decisions in the case of Alembic Chemical Works Co Ltd v CIT, 177 ITR 377 (SC) supra and Delhi High Court in the case of CIT v JK Synthetics Ltd 309 ITR 371, Shri Refrigeration Industries Ltd v CIT 127 ITR 746, Triveni Engr Works Ltd v CIT 136 ITR 340 Ciba of India 69 ITR 692 Hon'ble Supreme Court and other DRP concludes that royalty paid is revenue in nature. AO is directed to allow it accordingly.” 9. The above decision of DRP has been accepted by the Revenue and has become final. In view of the a…

ACIT, New Delhi vs. M/S. Baxter (India) Pvt. Ltd., Haryana

Appeal is allowed

ITA 5323/DEL/2012[2008-09]Status: DisposedITAT Delhi21 Jul 2016AY 2008-09

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Sudhanshu Srivastava

…the relevant year was a finding of fact rightly arrived at." 13. In the above mentioned case of Sharda Motors (supra), their Lordships discussed the earlier decision of Hon’ble Jurisdictional High Court in the case of CIT Vs. J.K.Synthetics Limited - [2009] 309 ITR 371 (Delhi) wherein their Lordships have enumerated certain principles for determining whether the payment of royalty is a capital expenditure or revenue expenditure. The same is discussed at pages 111 & 112 of 319 ITR and is being reproduced herein below for ready reference:- "(v) expenditure incurred for grant of licence which accords 'access' t…