CIT v. JK Chemicals Ltd.

207 ITR 985High Court1994#8289 most cited

What is CIT v. JK Chemicals Ltd. authority for?

Expenditure incurred on obtaining a market survey for setting up a new line of business is capital expenditure.

13

judgments rely on this decision, according to BharatTax’s citation analysis of 366,315 Indian tax judgments — from 2016 to 2025.

Also referred to as

CIT v JK Chemicals Ltd · capital expenditure · market survey · new business · business expenditure

Sections most often in play

Section 115JBSection 143(3)Section 147Section 148Section 14ASection 271(1)(c)Section 271ESection 35

Issues it is cited on

section 32(1)(iia)disallowance under section 40(a)(ia)r&d expenditureweighted deductionsection 35(2ab)section 194hsection 14a(2)right to receiveadditional depreciationroyalty incomesection 32(1)section 144c(3)

Judgments citing CIT v. JK Chemicals Ltd.

Jsw Energy (Barmer) Limited, Mumbai vs. The Assistant Commissioner of Income Tax, Central Circle 8(3), Mumbai

In the result, both the appeals are allowed partly for statistical

ITA 3713/MUM/2024[2020-21]Status: DisposedITAT Mumbai26 Mar 2025AY 2020-21

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal ()

For Appellant: Ms. Neena Jeph, CIT-DR/For Respondent: Mr. Gaurav Kabra
Section 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “K” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND MS. KAVITHA RAJAGOPAL (JUDICIAL MEMBER) ITA Nos. 3714 /MUM/2024 Assessment Year: 2020-21 JSW Energy Ltd., The Asst. CIT, Central Circle-8(3), 2nd floor, JSW Centre, Bandra Room No. 659, 6th floor, Aayakar Vs. Kurla Complex, Bandra East, Bhavan, Maharishi Karve Road, Mumbai-400051. Mumbai-400020. PAN NO. AAACJ 8109 N Appellant Respondent ITA Nos. 3713/MUM/2024 Assessment Year: 2020-21 JSW Energy (Barmer) Ltd., The Asst. CIT, Central Circle-8(3), 2nd floor, JSW Centre, Bandra Room No. 659, 6th floor,…

DCIT, Circle-6, Jaipur, Ncrb vs. Barmer Lignite Mining Company Limited, Jaipur

In the result, the appeal of the Revenue is dismissed

ITA 71/JPR/2024[2012-13]Status: DisposedITAT Jaipur04 Jun 2024AY 2012-13

Bench: SHRI SANDEEP GOSAIN (Judicial Member), DR MITHA LAL MEENA (Accountant Member)

For Appellant: Shri P.C. Parwal CAFor Respondent: Shri Arvind Kumar, CIT-DR fu/kZkfjrh dh vksj ls@
Section 143(3)Section 271(1)(c)

…be capitalized. This expenditure was in the nature of capital not revenue as decided by the Hon'ble Gujarat High court in case of Saurasthra Cement and Chemical Industries Limited VS. CIT (1992) (196 ITR 237) and also held in case JK Chemicals Limited (1994) (207 ITR 985). Accordingly expenditure of Rs. 44,81,910/- was disallowed by the AO and penalty proceedings u/s 271(1)(c) of the Income Tax Act, 1961 was initiated on this issue for furnishing inaccurate particulars of income. Further, the assessee debited Rs. 52,58,106 as upfront fee expense. The upfront fee was paid for acquisition of fixed assets and is in…

DCIT (Ltu) 2, Mumbai vs. Asian Paints Ltd, Mumbai

In the result, the appeal by the Revenue is partly allowed for statistical purposes

ITA 2959/MUM/2019[2015-16]Status: DisposedITAT Mumbai08 Mar 2024AY 2015-16

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri Fenil Bhatt a/wFor Respondent: Shri Vachashpati Tripathi
Section 10Section 142(1)Section 143(2)Section 143(3)Section 14ASection 250Section 37(1)

…arned DR placed reliance upon the decision of the Hon’ble jurisdictional High Court in CIT v/s Zenit Steel Pipes and Industries Ltd, [2009] 315 ITR 95 (Bom.), wherein following the earlier decision of the Hon’ble High Court in CIT v/s JK Chemicals Ltd, [1994] 207 ITR 985 (Bom.) it was held that expenditure incurred on obtaining market survey for setting up new line of business is a capital expenditure. Therefore, respectfully following the aforesaid decision and in view of the aforementioned findings, we find no infirmity in the findings of the learned CIT(A) on this issue. However, from the details of expenditur…

Asian Paints Limited, Mumbai vs. Dy. CIT Ltu, Mumbai

In the result, the appeal by the Revenue is partly allowed for statistical purposes

ITA 1673/MUM/2019[2015-16]Status: DisposedITAT Mumbai08 Mar 2024AY 2015-16

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri Fenil Bhatt a/wFor Respondent: Shri Vachashpati Tripathi
Section 10Section 142(1)Section 143(2)Section 143(3)Section 14ASection 250Section 37(1)

…arned DR placed reliance upon the decision of the Hon’ble jurisdictional High Court in CIT v/s Zenit Steel Pipes and Industries Ltd, [2009] 315 ITR 95 (Bom.), wherein following the earlier decision of the Hon’ble High Court in CIT v/s JK Chemicals Ltd, [1994] 207 ITR 985 (Bom.) it was held that expenditure incurred on obtaining market survey for setting up new line of business is a capital expenditure. Therefore, respectfully following the aforesaid decision and in view of the aforementioned findings, we find no infirmity in the findings of the learned CIT(A) on this issue. However, from the details of expenditur…

Asian Paints Ltd, Mumbai vs. Asst CIT (Ltu) 2, Mumbai

The appeal is dismissed holding that the learned CIT appeal is correct in allowing

ITA 269/MUM/2018[2014-15]Status: DisposedITAT Mumbai06 Mar 2024AY 2014-15

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri Madhur AgrawalFor Respondent: Shri Vachashpati Tripathi
Section 10(34)Section 142(1)Section 143(2)Section 143(3)Section 144C(3)Section 14ASection 250

…IN THE INCOME TAX APPELLATE TRIBUNAL “K” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA no.269/Mum./2018 (Assessment Year : 2014-15) Asian Paints Ltd. Asian Paints House 6A, Shanti Nagar, Santacruz (East) Mumbai 400 055 PAN – AAACA3622K Appellant v/s Asstt. Commissioner of Income Tax Large Taxpayer Unit-2, Mumbai Respondent ITA no.840/Mum./2018 (Assessment Year : 2014-15) Asstt. Commissioner of Income Tax Large Taxpayer Unit-2, Mumbai Appellant v/s Asian Paints Ltd. Asian Paints House 6A, Shanti Nagar, Santacruz (East) Mumbai 400 055 PAN – AAACA…

DCIT (Ltu) 2, Mumbai vs. Asian Paints Ltd, Mumbai

Appeal is partly allowed

ITA 5934/MUM/2017[2012-13]Status: DisposedITAT Mumbai01 Mar 2024AY 2012-13

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri Madhur AgrawalFor Respondent: Shri Vachashpati Tripathi
Section 10Section 142(1)Section 143(2)Section 143(3)Section 144C(3)Section 14ASection 250

…arned DR placed reliance upon the decision of the Hon'ble jurisdictional High Court in CIT v/s Zenit Steel Pipes and Industries Ltd, [2009] 315 ITR 95 (Bom.), wherein following the earlier decision of the Hon'ble High Court in CIT v/s JK Chemicals Ltd, [1994] 207 ITR 985 (Bom.) it was held that expenditure incurred on obtaining market survey for setting up new line of business is a capital expenditure. Therefore, respectfully following the aforesaid decision and in view of the aforementioned findings, we find no infirmity in the findings of the learned CIT(A) on this issue. However, from the details of expenditur…

Asian Paints Ltd, Mumbai vs. Asst CIT Ltu, Mumbai

Appeal is partly allowed

ITA 5363/MUM/2017[2012-13]Status: DisposedITAT Mumbai01 Mar 2024AY 2012-13

Bench: Us.

Section 10Section 142(1)Section 143(2)Section 143(3)Section 144C(3)Section 14A

…arned DR placed reliance upon the decision of the Hon'ble jurisdictional High Court in CIT v/s Zenit Steel Pipes and Industries Ltd, [2009] 315 ITR 95 (Bom.), wherein following the earlier decision of the Hon'ble High Court in CIT v/s JK Chemicals Ltd, [1994] 207 ITR 985 (Bom.) it was held that expenditure incurred on obtaining market survey for setting up new line of business is a capital expenditure. Therefore, respectfully following the aforesaid decision and in view of the aforementioned findings, we find no infirmity in the findings of the learned CIT(A) on this issue. However, from the details of expenditur…

Tata Chemicals Ltd, Mumbai vs. Addl Ciat 2(3), Mumbai

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

ITA 120/MUM/2013[2008-09]Status: DisposedITAT Mumbai10 Nov 2023AY 2008-09

Bench: Shri Vikas Awasthy, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

Section 144C(5)Section 14ASection 43BSection 80

…to the capital of the projects. It was clearly an expenditure incurred for ascertaining whether to acquire new assets of some durability for the purposes of earning profit. The following judgments clearly support the above view: (i) CIT v. J.K.Chemicals Ltd. [207 ITR 985 (Bom)] (ii) CIT v. Zenith Steel Pipes & Industries (315 ITR 95 (Bom.)] (iii) Malabar & Pioneer Hosiery Pvt. Ltd. VsCIT (2008) 302 ITR 72 (Ker) (iv) Century Spinning & Manufacturing CoLtdVsCIT 128 CTR 317 (Bom) Therefore, the assessee's claim of write off of expenditure of Rs.2.53 crores incurred in relation to projects written off is disallowed a…

M/S Mega Management Services Pvt Ltd., Mumbai vs. DCIT CC 6 (4), Mumbai

In the result, the appeal filed by the assessee is hereby dismissed

ITA 6818/MUM/2019[2014-15]Status: DisposedITAT Mumbai08 Apr 2021AY 2014-15
For Appellant: Shri Navnit ChoudharyFor Respondent: Shri Sanjay Sethi (Sr. AR)
Section 143(2)Section 14ASection 28Section 36(1)(iii)Section 36(2)

…lause grants an allowance in respect of bad debts of a business, profession or vocation and in respect of irrecoverable. loans in the case of banking or money-lending business. A bad debt presupposes the existence of a debt [as reported in CIT v. JK Chemicals 207 ITR 985: CIT Howrah flour Mills Ltd (1999] 236 ITR 156 and in cases in which there never was any debt owing to the assessee, no question can arise of invoking this clause in reported National Petroleum v. CIT 13 ITR 336" 13. Four conditions which govern the grant of an allowance under this clause have been enlightened in the decision reported in Surangpu…

Ra Chem Pharma Limited, Hyderabad vs. ITO, Ward-3(2), Hyderabad

In the result, assessee’s appeal in ITA No

ITA 65/HYD/2017[2012-13]Status: DisposedITAT Hyderabad08 Jun 2018AY 2012-13

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahmanassessment Year: 2012-13

For Appellant: Shri S. Rama RaoFor Respondent: Shri R. Mohan Reddy
Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH ‘B', HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER Assessment Year: 2012-13 RA Chem Pharma Ltd., vs. Income Tax Officer, Hyderabad. Ward – 3(2), Hyderabad. PAN – AAACI 6448M Appellant Respondent ITA Nos. 48 & 49/Hyd/2017 Assessment Year: 2010-11 & 2012-13 Dy. Commissioner of vs. RA Chem Pharma Ltd., Income-tax, Circle – 3(1), Hyderabad. Hyderabad. PAN – AAACI 6448M Appellant Respondent Assessee by: Shri S. Rama Rao Revenue by: Shri R. Mohan Reddy Date of hearing: 04/06/2018 Date of pronouncement: 08/0…

DCIT, Circle-3(1), Hyderabad vs. Ra Chem Pharma Limited, Hyderabad

In the result, assessee’s appeal in ITA No

ITA 49/HYD/2017[2012-13]Status: DisposedITAT Hyderabad08 Jun 2018AY 2012-13

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahmanassessment Year: 2012-13

For Appellant: Shri S. Rama RaoFor Respondent: Shri R. Mohan Reddy
Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH ‘B', HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER Assessment Year: 2012-13 RA Chem Pharma Ltd., vs. Income Tax Officer, Hyderabad. Ward – 3(2), Hyderabad. PAN – AAACI 6448M Appellant Respondent ITA Nos. 48 & 49/Hyd/2017 Assessment Year: 2010-11 & 2012-13 Dy. Commissioner of vs. RA Chem Pharma Ltd., Income-tax, Circle – 3(1), Hyderabad. Hyderabad. PAN – AAACI 6448M Appellant Respondent Assessee by: Shri S. Rama Rao Revenue by: Shri R. Mohan Reddy Date of hearing: 04/06/2018 Date of pronouncement: 08/0…

DCIT, Circle-3(1), Hyderabad vs. Ra Chem Pharma Limited, Hyderabad

In the result, assessee’s appeal in ITA No

ITA 48/HYD/2017[2010-11]Status: DisposedITAT Hyderabad08 Jun 2018AY 2010-11

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahmanassessment Year: 2012-13

For Appellant: Shri S. Rama RaoFor Respondent: Shri R. Mohan Reddy
Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH ‘B', HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER Assessment Year: 2012-13 RA Chem Pharma Ltd., vs. Income Tax Officer, Hyderabad. Ward – 3(2), Hyderabad. PAN – AAACI 6448M Appellant Respondent ITA Nos. 48 & 49/Hyd/2017 Assessment Year: 2010-11 & 2012-13 Dy. Commissioner of vs. RA Chem Pharma Ltd., Income-tax, Circle – 3(1), Hyderabad. Hyderabad. PAN – AAACI 6448M Appellant Respondent Assessee by: Shri S. Rama Rao Revenue by: Shri R. Mohan Reddy Date of hearing: 04/06/2018 Date of pronouncement: 08/0…

ACIT 8(1), Mumbai vs. Bunge India P. Ltd, Mumbai

ITA 4336/MUM/2009[2005-06]Status: DisposedITAT Mumbai18 May 2016AY 2005-06
For Appellant: Shri Vispi PatelFor Respondent: Shri Debashish Chandra
Section 254(1)Section 92A

…not deriving and in benefit from the market research,that such research would become obsolete within a short span of time,that the expenditure was revenue in nature.He referred to the cases of Ananda Bazar Patrika (P) Ltd.(184 ITR 542) and JK Chemicals Ltd. (207 ITR 985). 21.After hearing the rival submissions we are of the opinion that the expenditure incurred by the assessee on market research was a revenue expenditure and that it could not be treated capital expenditure. The fact that the assessee has two incur expenditure for research every month in itself proves that the span of life of the survey is very…

CIT v. JK Chemicals Ltd. (207 ITR 985) — Cited in 13 Judgments | BharatTax