CIT v. Jagajit Industries Limited

241 ITR 556High Court2000#5009 most cited

What is CIT v. Jagajit Industries Limited authority for?

Whether the replacement of parts of machinery constitutes revenue or capital expenditure is primarily a question of fact, dependent on the context of the assessee's business. An enduring benefit alone is not conclusive of capital expenditure.

23

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2011 to 2025.

Also referred to as

CIT v. Jagajit Industries Limited · revenue expenditure · capital expenditure · replacement of parts · machinery · question of fact · enduring benefit · 241 ITR 556

Sections most often in play

Section 139(1)Section 143(3)Section 43BSection 68

Judgments citing CIT v. Jagajit Industries Limited

A.V. Industries, Mumbai vs. ACIT 24(3), Mumbai

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

ITA 3469/MUM/2010[2005-06]Status: DisposedITAT Mumbai06 Nov 2015AY 2005-06

Bench: Shri G.S. Pannu & Shri Sanjay Gargassessment Year: 2005-06 M/S. A.V. Industries, Asstt. Commissioner Of Income 201, Bhagtani Krishna, Tax -24(3), “A” Wing, Mumbai Vs. Dattaray Road, Santacruz (W), Mumbai – 400 054 Pan: Aaffa 1100L (Appellant) (Respondent) Present For: Assessee By : Shri K. Shivaram, A.R. Revenue By : Shri Sanjay Singh, D.R. Date Of Hearing : 23.07.2015 Date Of Pronouncement : 06.11.2015 O R D E R

For Appellant: Shri K. Shivaram, A.RFor Respondent: Shri Sanjay Singh, D.R
Section 143(3)Section 263Section 80G

…obile parts was of revenue nature and as such the same was debited in the profit and loss account. The assessee also relied upon the decision in the case of “CIT vs. Mysore Spun Concrete Pipe (P) Ltd.” 194 ITR 159 (Kar.) and “CIT vs. Jagatjit Industries Ltd.” 241 ITR 556 (Del.). In respect of depreciation on dyes and moulds the assessee explained that the same at the rate of 40% was rightly claimed. The assessee submitted a depreciation chart in this respect. In respect of the third item i.e. depreciation allowable on motor car, the assessee submitted that depreciation had rightly been claimed at Rs.9,42,382/- an…

Commissioner of Income Tax vs. Super Cassettes Industries Ltd

ITA - 626 / 2010HC Delhi17 Oct 2011
Section 260A

…e of replacement of parts of the old machines which continues to exist and remains the capital asset. 6. The tribunal in the impugned order has rightly relied upon the decision of this Court in *Commissioner of Income-Tax Vs. Jagatjit Industries Ltd.* [2000] 241 ITR 556, wherein it has been held as under:- "Whether on given set of facts, replacement of certain items, forming an integral or important part of the machinery would be revenue expenditure or capital expenditure is primarily a question of fact, to be decided in the context of the business carried on by an assessee. Merely, because the benefit accruing…

Commissioner of Income Tax vs. Super Cassettes Industries Ltd

ITA - 197 / 2010HC Delhi17 Oct 2011
Section 260A

…ure of replacement of parts of the old machines which continues to exist and remains the capital asset. The tribunal in the impugned order has rightly relied upon the 6. decision of this Court in Commissioner of Income-Tax Vs. Jagatjit Industries Ltd. [2000] 241 ITR 556, wherein it has been held as under:- > "Whether on given set of facts, replacement of certain items, forming an integral or important part of the machinery would be revenue expenditure or capital expenditure is primarily a question of fact, to be decided in the context of the business carried on by an assessee. Merely, because the benefit accrui…