CIT v. Madras Auto Service (P) Ltd.

233 ITR 468Supreme Court of India1998#353 most cited

What is CIT v. Madras Auto Service (P) Ltd. authority for?

Expenditure providing an enduring advantage, such as upfront lease rent for land, is revenue expenditure if no capital asset is acquired or generated, allowing for deduction under Section 37, even when capitalized in the books of account.

246

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2008 to 2026.

Also referred to as

CIT v. Madras Auto Service (P) Ltd. · 233 ITR 468 · Section 37(1) · revenue expenditure · capital expenditure · test of enduring benefit · upfront lease rent · no capital asset generated · business deduction · expenditure classification · depreciation for income tax

Sections most often in play

Section 143(3)Section 14ASection 254Section 37(1)Section 115JBSection 142(1)Section 37Section 10(15)
Read the full judgment

Issues it is cited on

test of enduring benefitsection 10(2)(xv)business transfer agreementnon-compete feeenduring benefitslump salededuction u/s 80iasection 40a(2)revenue expenditurecapital expenditurebook profitssection 80ia

Judgments citing CIT v. Madras Auto Service (P) Ltd.

The Ramco Cements Limited, Chennai vs. DCIT, Madurai

The appeals of the revenue stand dismissed

ITA 957/CHNY/2016[2010-2011]Status: DisposedITAT Chennai03 Jul 2024AY 2010-2011

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm 1. आयकरअपील सं./ Ita No.957/Chny/2016 (िनधा;रण वष; / Assessment Year: 2010-11) & 2. आयकरअपील सं./ Ita No.958/Chny/2016 (िनधा;रण वष; / Assessment Year: 2012-13) & 3. आयकरअपील सं./ Ita No.2196/Chny/2019 (िनधा;रण वष; / Assessment Year: 2014-15) The Ramco Cements Limited Dcit बनाम (Formerly Known As Madras Cements Ltd) Corporate Circle -2, Ramamandiram, / Vs. Madurai. Rajapalayam-626 117. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aabcm-8375-L (अपीलाथ"/Appellant) : (" थ" / Respondent) & 4. आयकरअपील सं./ Ita No.1274/Chny/2016 (िनधा;रण वष; / Assessment Year: 2010-11) & 5. आयकरअपील सं./ Ita No.1363/Chny/2016 (िनधा;रण वष; / Assessment Year: 2012-13) & 6. आयकरअपील सं./ Ita No.1897/Chny/2017 (िनधा;रणवष; / Assessment Year: 2013-14) Dcit The Ramco Cements Limited बनाम/ Corporate Circle -2, (Formerly Known As Madras Cements Ltd) Ramamandiram, Vs. Madurai. Rajapalayam-626 117. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aabcm-8375-L (अपीलाथ"/Appellant) : (" थ" / Respondent)

For Appellant: Shri J.Prabhakar (CA) &For Respondent: Mrs. Jothi Lakshmi Nayak (CIT)-Ld.DR

…see’s favor for AYs 1994-95, 1996-97 and 2003-04. However, the issue has been restored back by Tribunal for AY 2011-12. In AY 2003-04, Tribunal approved reliance placed by Ld. CIT(A) on the decision of Hon’ble Supreme Court in the case of Madras Auto Service (233 ITR 468). The Ld. AR also submitted that though expenditure was capitalized in the books of account and depreciation was charged in the books, however, for Income Tax purpose, no depreciation was claimed on the same. The Ld. AR also placed on record relevant railway siding agreements and submitted that the terms of the agreements remain the same as they…

DCIT, Madurai vs. The Ramco Cements Limited, Rajapalayam

The appeals of the revenue stand dismissed

ITA 1363/CHNY/2016[2012-13]Status: DisposedITAT Chennai03 Jul 2024AY 2012-13

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm 1. आयकरअपील सं./ Ita No.957/Chny/2016 (िनधा;रण वष; / Assessment Year: 2010-11) & 2. आयकरअपील सं./ Ita No.958/Chny/2016 (िनधा;रण वष; / Assessment Year: 2012-13) & 3. आयकरअपील सं./ Ita No.2196/Chny/2019 (िनधा;रण वष; / Assessment Year: 2014-15) The Ramco Cements Limited Dcit बनाम (Formerly Known As Madras Cements Ltd) Corporate Circle -2, Ramamandiram, / Vs. Madurai. Rajapalayam-626 117. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aabcm-8375-L (अपीलाथ"/Appellant) : (" थ" / Respondent) & 4. आयकरअपील सं./ Ita No.1274/Chny/2016 (िनधा;रण वष; / Assessment Year: 2010-11) & 5. आयकरअपील सं./ Ita No.1363/Chny/2016 (िनधा;रण वष; / Assessment Year: 2012-13) & 6. आयकरअपील सं./ Ita No.1897/Chny/2017 (िनधा;रणवष; / Assessment Year: 2013-14) Dcit The Ramco Cements Limited बनाम/ Corporate Circle -2, (Formerly Known As Madras Cements Ltd) Ramamandiram, Vs. Madurai. Rajapalayam-626 117. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aabcm-8375-L (अपीलाथ"/Appellant) : (" थ" / Respondent)

For Appellant: Shri J.Prabhakar (CA) &For Respondent: Mrs. Jothi Lakshmi Nayak (CIT)-Ld.DR

…see’s favor for AYs 1994-95, 1996-97 and 2003-04. However, the issue has been restored back by Tribunal for AY 2011-12. In AY 2003-04, Tribunal approved reliance placed by Ld. CIT(A) on the decision of Hon’ble Supreme Court in the case of Madras Auto Service (233 ITR 468). The Ld. AR also submitted that though expenditure was capitalized in the books of account and depreciation was charged in the books, however, for Income Tax purpose, no depreciation was claimed on the same. The Ld. AR also placed on record relevant railway siding agreements and submitted that the terms of the agreements remain the same as they…

DCIT, Madurai vs. The Ramco Cements Ltd., Rajapalayam

The appeals of the revenue stand dismissed

ITA 1274/CHNY/2016[2010-11]Status: DisposedITAT Chennai03 Jul 2024AY 2010-11

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm 1. आयकरअपील सं./ Ita No.957/Chny/2016 (िनधा;रण वष; / Assessment Year: 2010-11) & 2. आयकरअपील सं./ Ita No.958/Chny/2016 (िनधा;रण वष; / Assessment Year: 2012-13) & 3. आयकरअपील सं./ Ita No.2196/Chny/2019 (िनधा;रण वष; / Assessment Year: 2014-15) The Ramco Cements Limited Dcit बनाम (Formerly Known As Madras Cements Ltd) Corporate Circle -2, Ramamandiram, / Vs. Madurai. Rajapalayam-626 117. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aabcm-8375-L (अपीलाथ"/Appellant) : (" थ" / Respondent) & 4. आयकरअपील सं./ Ita No.1274/Chny/2016 (िनधा;रण वष; / Assessment Year: 2010-11) & 5. आयकरअपील सं./ Ita No.1363/Chny/2016 (िनधा;रण वष; / Assessment Year: 2012-13) & 6. आयकरअपील सं./ Ita No.1897/Chny/2017 (िनधा;रणवष; / Assessment Year: 2013-14) Dcit The Ramco Cements Limited बनाम/ Corporate Circle -2, (Formerly Known As Madras Cements Ltd) Ramamandiram, Vs. Madurai. Rajapalayam-626 117. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aabcm-8375-L (अपीलाथ"/Appellant) : (" थ" / Respondent)

For Appellant: Shri J.Prabhakar (CA) &For Respondent: Mrs. Jothi Lakshmi Nayak (CIT)-Ld.DR

…see’s favor for AYs 1994-95, 1996-97 and 2003-04. However, the issue has been restored back by Tribunal for AY 2011-12. In AY 2003-04, Tribunal approved reliance placed by Ld. CIT(A) on the decision of Hon’ble Supreme Court in the case of Madras Auto Service (233 ITR 468). The Ld. AR also submitted that though expenditure was capitalized in the books of account and depreciation was charged in the books, however, for Income Tax purpose, no depreciation was claimed on the same. The Ld. AR also placed on record relevant railway siding agreements and submitted that the terms of the agreements remain the same as they…

Rhine Energy LLP, Bhagirath Palace vs. Assessment Unit, Income Tax Department, National Faceless Assessment Centre(Nefac)

In the result appeal of the assessee is allowed

ITA 3052/DEL/2023[2021-22]Status: DisposedITAT Delhi24 Apr 2024AY 2021-22

Bench: Shri S Rifaur Rahman & Shri Vimal Kumarasstt. Year: 2021-22 Rhine Energy Llp Vs. Assessment Unit, Flat No. 4, 3Rd Floor, Income Tax Mahalaxmi Market, Department, Nfac Bhagirath Palace, Delhi. Delhi - 110 006 Pan Aatfr6490A (Appellant) (Respondent)

For Appellant: Shri Ved Jain, AdvocateFor Respondent: Shri Vivek Vardhan, Sr. DR
Section 143Section 143(1)(a)Section 270ASection 37Section 37(1)

…r 2021-22 and accounted for properly and fully audited also. None of the expenses were of personal in nature. All the expenditure were incurred for purpose of business. Hon’ble Supreme Court of India in the case of CIT v/s Madras Auto Services (P) Ltd. (1998) 233 ITR 468 SC summarised the general principles applicable in determining whether a particular expenditure is capital or revenue as follows: i) Outlay is deemed to be capital when it is made for the intimation of a business, for extension of a business, or for a substantial replacement of equipment. ii) Expenditure may be treated as property attributable t…

Standard Chartered Bank, Mumbai vs. DDIT(It) 2 (1), Mumbai

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

ITA 1683/MUM/2019[2002-03]Status: DisposedITAT Mumbai15 Mar 2024AY 2002-03

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Rahul Chaudhary, Hon'Bleorder Per S. Rifaur Rahman (Am) 1. These Cross Appeals Are Filled By The Assessee & Revenue Against Different Orders Of Learned Commissioner Of Income Tax (Appeals)-57, Mumbai (Hereinafter In Short "Ld.Cit(A)"] Dated 28.12.2018 For The A.Ys.2002-03 & 2003-04. 2. Since The Issues Raised In All The Appeals Are Identical, Therefore, For The Sake Of Convenience, These Appeals Are Clubbed, Heard & Disposed Off By This Consolidated Order. Revenue Appeals

Section 195Section 28Section 9(1)(v)

…n favor of the Appellant by the decision of the Co-ordinate bench of the Tribunal in the Appellant's own case for the assessment year 1999-2000, wherein the Tribunal following the decision of Hon'ble Supreme Court in the case of Madras Auto Service Pvt. Ltd. [233 ITR 468] (Copy of decision is enclosed in the Bank's legal paper book at page 336) allowed the deduction for the entire refurbishment expenses (Copy of A.Y. 1999-00 ITAT order is enclosed in the Bank's legal paper book -refer page 157, para 13 and 14) which reads as under: "13. Considered the rival submissions and material placed on record, we observed t…

DCIT RG. - 3(1), Mumbai vs. M/S. Bajaj Auto Ltd., Mumbai

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

ITA 4372/MUM/2005[2001-2002]Status: DisposedITAT Mumbai23 Feb 2024AY 2001-2002

Bench: Shri Aby T Varkey, Hon’Ble & Shri S. Rifaur Rahman, Hon'Blem/S. Bajaj Auto Limited V. Dcit – Range – 3(1) Bajaj Bhavan, 226-Nariman Point 6Th Floor, Aayakar Bhavan Mumbai – 400021 M.K. Road, Mumbai - 400020 Pan : Aaacb3370K (Appellant) (Respondent) Dcit – Range – 3(1) V. M/S. Bajaj Auto Limited Room No. 623, 6Th Floor Bajaj Bhavan, 226-Nariman Point Mumbai – 400021 Aayakar Bhavan M.K. Road, Mumbai - 400020 Pan : Aaacb3370K (Appellant) (Respondent) Assessee Represented By : Ms. Vasanti Patel& Shri Kirit Kamdar Department Represented By : Shri Ankush Kapoor

Section 143(4)(b)Section 234Section 35Section 35DSection 37(1)Section 40

…n lease for a period of 19 years is revenue expenditure. While coming to this conclusion the Hon'ble High Court has relied upon the principle and ratio laid down by the Hon'ble Supreme Court in the case of CIT vs. Madras Auto Services Ltd. (1998), reported in 233 ITR 468 (SC). The point in issue is also covered by the decision of the Hon'ble Madras High Court in the case of CIT vs. Ucal Fuel Systems Ltd. reported in 296 ITR 702, wherein similar matter was involved and was held that upfront lease rent charges paid for obtaining lease of land and building is revenue expenditure. In view of the aforesaid preposition…

M/S. Bajaj Auto Ltd., Mumbai vs. DCIT RG. - 3(1), Mumbai

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

ITA 4236/MUM/2005[2001-2002]Status: DisposedITAT Mumbai23 Feb 2024AY 2001-2002

Bench: Shri Aby T Varkey, Hon’Ble & Shri S. Rifaur Rahman, Hon'Blem/S. Bajaj Auto Limited V. Dcit – Range – 3(1) Bajaj Bhavan, 226-Nariman Point 6Th Floor, Aayakar Bhavan Mumbai – 400021 M.K. Road, Mumbai - 400020 Pan : Aaacb3370K (Appellant) (Respondent) Dcit – Range – 3(1) V. M/S. Bajaj Auto Limited Room No. 623, 6Th Floor Bajaj Bhavan, 226-Nariman Point Mumbai – 400021 Aayakar Bhavan M.K. Road, Mumbai - 400020 Pan : Aaacb3370K (Appellant) (Respondent) Assessee Represented By : Ms. Vasanti Patel& Shri Kirit Kamdar Department Represented By : Shri Ankush Kapoor

Section 143(4)(b)Section 234Section 35Section 35DSection 37(1)Section 40

…n lease for a period of 19 years is revenue expenditure. While coming to this conclusion the Hon'ble High Court has relied upon the principle and ratio laid down by the Hon'ble Supreme Court in the case of CIT vs. Madras Auto Services Ltd. (1998), reported in 233 ITR 468 (SC). The point in issue is also covered by the decision of the Hon'ble Madras High Court in the case of CIT vs. Ucal Fuel Systems Ltd. reported in 296 ITR 702, wherein similar matter was involved and was held that upfront lease rent charges paid for obtaining lease of land and building is revenue expenditure. In view of the aforesaid preposition…

ACIT-1(1)(1), Mumbai vs. M/S. Hindustan Petroleum Corporation Ltd, Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 1995/MUM/2023[2004-05]Status: DisposedITAT Mumbai07 Feb 2024AY 2004-05

Bench: Shri Aby T Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

Section 80I

…nce and repair activities that are charged to this account and hence are purely revenue in nature and allowable under section 37(1) of the Act and the same cannot be capital in nature." The assessee has also relied on CIT Vs. Madras Auto Services P. ltd (1998)233 ITR 468 (SC) and other cases to support its case that the impugned expenditure are revenue in nature. 30. After considering the submissions of the assessee, Assessing Officer rejected the submissions of the assessee by observing as under:- “14. I have considered the submission made by the assessee. I have also gone through the relevant provisions and j…

ACIT-1(1)(1), Mumbai vs. M/S. Hindustan Petroleum Corporation Ltd, Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 1994/MUM/2023[2003-04]Status: DisposedITAT Mumbai07 Feb 2024AY 2003-04

Bench: Shri Aby T Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

Section 80I

…nce and repair activities that are charged to this account and hence are purely revenue in nature and allowable under section 37(1) of the Act and the same cannot be capital in nature." The assessee has also relied on CIT Vs. Madras Auto Services P. ltd (1998)233 ITR 468 (SC) and other cases to support its case that the impugned expenditure are revenue in nature. 30. After considering the submissions of the assessee, Assessing Officer rejected the submissions of the assessee by observing as under:- “14. I have considered the submission made by the assessee. I have also gone through the relevant provisions and j…

DCIT (Ltu), New Delhi vs. M/S Dalmia Bharat Sugar and Industries Ltd., New Delhi

In the result, appeals of the Revenue for AY 2009-10 to 2010-

ITA 5677/DEL/2016[2011-12]Status: DisposedITAT Delhi14 Nov 2023AY 2011-12

Bench: Shri Challa Nagendra Prasad & Shri M Balaganeshआ.अ.सं/.I.T.A Nos.4317/Del/2014 िनधा"रणवष"/Assessment Year:2008-09 बनाम Dcit (Ltu) Dalmia Cement (Bharat)Ltd. Nbcc Plaza, Pushp Vihar, Vs. (Now Known As M/S Dalmia Sector-Iii, New Delhi. Bharat Sugar & Industries Ltd.) 11Th & 12Th Floors, Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A Nos.4338/Del/2014 िनधा"रणवष"/Assessment Year:2008-09 बनाम Dalmia Cement (Bharat)Ltd. Dcit (Ltu) (Now Known As M/S Dalmia Bharat Vs. Nbcc Plaza, Pushp Sugar & Industries Ltd.) Vihar, 11Th & 12Th Floors, Sector-Iii, New Delhi. Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A Nos.4447/Del/2014 िनधा"रणवष"/Assessment Year:2009-10 बनाम Dcit (Ltu) Dalmia Cement (Bharat)Ltd. Nbcc Plaza, Pushp Vihar, Vs. (Now Known As M/S Dalmia Sector-Iii, New Delhi. Bharat Sugar & Industries Ltd.) 11Th & 12Th Floors, Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent

Section 80I

…ld that the payment made to the Gujarat Electricity Board towards the cost of laying the overhead service lines constituted revenue expenditure and was an allowable deduction. 13. Our attention has also been drawn to CIT v. Madras Auto Service (P) Ltd. [1998] 233 ITR 468, wherein the Supreme Court summarized the law as laid down in Assam Bengal Cement Co. Ltd. v. CIT in the following words: “1. Outlay is deemed to be capital when it is made for the initiation of a business, for extension of a business, or for a substantial replacement of equipment. 2. Expenditure may be treated as properly attributable to capital…

Dalmia Bharat Sugar and Industries Ltd., New Delhi vs. DCIT (Ltu), New Delhi

In the result, appeals of the Revenue for AY 2009-10 to 2010-

ITA 5019/DEL/2016[2011-12]Status: DisposedITAT Delhi14 Nov 2023AY 2011-12

Bench: Shri Challa Nagendra Prasad & Shri M Balaganeshआ.अ.सं/.I.T.A Nos.4317/Del/2014 िनधा"रणवष"/Assessment Year:2008-09 बनाम Dcit (Ltu) Dalmia Cement (Bharat)Ltd. Nbcc Plaza, Pushp Vihar, Vs. (Now Known As M/S Dalmia Sector-Iii, New Delhi. Bharat Sugar & Industries Ltd.) 11Th & 12Th Floors, Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A Nos.4338/Del/2014 िनधा"रणवष"/Assessment Year:2008-09 बनाम Dalmia Cement (Bharat)Ltd. Dcit (Ltu) (Now Known As M/S Dalmia Bharat Vs. Nbcc Plaza, Pushp Sugar & Industries Ltd.) Vihar, 11Th & 12Th Floors, Sector-Iii, New Delhi. Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A Nos.4447/Del/2014 िनधा"रणवष"/Assessment Year:2009-10 बनाम Dcit (Ltu) Dalmia Cement (Bharat)Ltd. Nbcc Plaza, Pushp Vihar, Vs. (Now Known As M/S Dalmia Sector-Iii, New Delhi. Bharat Sugar & Industries Ltd.) 11Th & 12Th Floors, Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent

Section 80I

…ld that the payment made to the Gujarat Electricity Board towards the cost of laying the overhead service lines constituted revenue expenditure and was an allowable deduction. 13. Our attention has also been drawn to CIT v. Madras Auto Service (P) Ltd. [1998] 233 ITR 468, wherein the Supreme Court summarized the law as laid down in Assam Bengal Cement Co. Ltd. v. CIT in the following words: “1. Outlay is deemed to be capital when it is made for the initiation of a business, for extension of a business, or for a substantial replacement of equipment. 2. Expenditure may be treated as properly attributable to capital…

DCIT (Ltu), New Delhi vs. M/S. Dalmia Bharat Sugar & Industries Ltd., New Delhi

In the result, appeals of the Revenue for AY 2009-10 to 2010-

ITA 4572/DEL/2014[2010-11]Status: DisposedITAT Delhi14 Nov 2023AY 2010-11

Bench: Shri Challa Nagendra Prasad & Shri M Balaganeshआ.अ.सं/.I.T.A Nos.4317/Del/2014 िनधा"रणवष"/Assessment Year:2008-09 बनाम Dcit (Ltu) Dalmia Cement (Bharat)Ltd. Nbcc Plaza, Pushp Vihar, Vs. (Now Known As M/S Dalmia Sector-Iii, New Delhi. Bharat Sugar & Industries Ltd.) 11Th & 12Th Floors, Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A Nos.4338/Del/2014 िनधा"रणवष"/Assessment Year:2008-09 बनाम Dalmia Cement (Bharat)Ltd. Dcit (Ltu) (Now Known As M/S Dalmia Bharat Vs. Nbcc Plaza, Pushp Sugar & Industries Ltd.) Vihar, 11Th & 12Th Floors, Sector-Iii, New Delhi. Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A Nos.4447/Del/2014 िनधा"रणवष"/Assessment Year:2009-10 बनाम Dcit (Ltu) Dalmia Cement (Bharat)Ltd. Nbcc Plaza, Pushp Vihar, Vs. (Now Known As M/S Dalmia Sector-Iii, New Delhi. Bharat Sugar & Industries Ltd.) 11Th & 12Th Floors, Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent

Section 80I

…ld that the payment made to the Gujarat Electricity Board towards the cost of laying the overhead service lines constituted revenue expenditure and was an allowable deduction. 13. Our attention has also been drawn to CIT v. Madras Auto Service (P) Ltd. [1998] 233 ITR 468, wherein the Supreme Court summarized the law as laid down in Assam Bengal Cement Co. Ltd. v. CIT in the following words: “1. Outlay is deemed to be capital when it is made for the initiation of a business, for extension of a business, or for a substantial replacement of equipment. 2. Expenditure may be treated as properly attributable to capital…

DCIT(Ltu), New Delhi vs. M/S. Dalmia Bharat Sugar & Industries Ltd., New Delhi

In the result, appeals of the Revenue for AY 2009-10 to 2010-

ITA 4447/DEL/2014[2009-10]Status: DisposedITAT Delhi14 Nov 2023AY 2009-10

Bench: Shri Challa Nagendra Prasad & Shri M Balaganeshआ.अ.सं/.I.T.A Nos.4317/Del/2014 िनधा"रणवष"/Assessment Year:2008-09 बनाम Dcit (Ltu) Dalmia Cement (Bharat)Ltd. Nbcc Plaza, Pushp Vihar, Vs. (Now Known As M/S Dalmia Sector-Iii, New Delhi. Bharat Sugar & Industries Ltd.) 11Th & 12Th Floors, Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A Nos.4338/Del/2014 िनधा"रणवष"/Assessment Year:2008-09 बनाम Dalmia Cement (Bharat)Ltd. Dcit (Ltu) (Now Known As M/S Dalmia Bharat Vs. Nbcc Plaza, Pushp Sugar & Industries Ltd.) Vihar, 11Th & 12Th Floors, Sector-Iii, New Delhi. Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A Nos.4447/Del/2014 िनधा"रणवष"/Assessment Year:2009-10 बनाम Dcit (Ltu) Dalmia Cement (Bharat)Ltd. Nbcc Plaza, Pushp Vihar, Vs. (Now Known As M/S Dalmia Sector-Iii, New Delhi. Bharat Sugar & Industries Ltd.) 11Th & 12Th Floors, Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent

Section 80I

…ld that the payment made to the Gujarat Electricity Board towards the cost of laying the overhead service lines constituted revenue expenditure and was an allowable deduction. 13. Our attention has also been drawn to CIT v. Madras Auto Service (P) Ltd. [1998] 233 ITR 468, wherein the Supreme Court summarized the law as laid down in Assam Bengal Cement Co. Ltd. v. CIT in the following words: “1. Outlay is deemed to be capital when it is made for the initiation of a business, for extension of a business, or for a substantial replacement of equipment. 2. Expenditure may be treated as properly attributable to capital…

Dalmia Bharat Sugar and Industries Ltd., New Delhi vs. DCIT (Ltu), New Delhi

In the result, appeals of the Revenue for AY 2009-10 to 2010-

ITA 4394/DEL/2014[2010-11]Status: DisposedITAT Delhi14 Nov 2023AY 2010-11

Bench: Shri Challa Nagendra Prasad & Shri M Balaganeshआ.अ.सं/.I.T.A Nos.4317/Del/2014 िनधा"रणवष"/Assessment Year:2008-09 बनाम Dcit (Ltu) Dalmia Cement (Bharat)Ltd. Nbcc Plaza, Pushp Vihar, Vs. (Now Known As M/S Dalmia Sector-Iii, New Delhi. Bharat Sugar & Industries Ltd.) 11Th & 12Th Floors, Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A Nos.4338/Del/2014 िनधा"रणवष"/Assessment Year:2008-09 बनाम Dalmia Cement (Bharat)Ltd. Dcit (Ltu) (Now Known As M/S Dalmia Bharat Vs. Nbcc Plaza, Pushp Sugar & Industries Ltd.) Vihar, 11Th & 12Th Floors, Sector-Iii, New Delhi. Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A Nos.4447/Del/2014 िनधा"रणवष"/Assessment Year:2009-10 बनाम Dcit (Ltu) Dalmia Cement (Bharat)Ltd. Nbcc Plaza, Pushp Vihar, Vs. (Now Known As M/S Dalmia Sector-Iii, New Delhi. Bharat Sugar & Industries Ltd.) 11Th & 12Th Floors, Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent

Section 80I

…ld that the payment made to the Gujarat Electricity Board towards the cost of laying the overhead service lines constituted revenue expenditure and was an allowable deduction. 13. Our attention has also been drawn to CIT v. Madras Auto Service (P) Ltd. [1998] 233 ITR 468, wherein the Supreme Court summarized the law as laid down in Assam Bengal Cement Co. Ltd. v. CIT in the following words: “1. Outlay is deemed to be capital when it is made for the initiation of a business, for extension of a business, or for a substantial replacement of equipment. 2. Expenditure may be treated as properly attributable to capital…

Dalmia Bharat Sugar and Industries Ltd., New Delhi vs. DCIT (Ltu), New Delhi

In the result, appeals of the Revenue for AY 2009-10 to 2010-

ITA 4393/DEL/2014[2009-10]Status: DisposedITAT Delhi14 Nov 2023AY 2009-10

Bench: Shri Challa Nagendra Prasad & Shri M Balaganeshआ.अ.सं/.I.T.A Nos.4317/Del/2014 िनधा"रणवष"/Assessment Year:2008-09 बनाम Dcit (Ltu) Dalmia Cement (Bharat)Ltd. Nbcc Plaza, Pushp Vihar, Vs. (Now Known As M/S Dalmia Sector-Iii, New Delhi. Bharat Sugar & Industries Ltd.) 11Th & 12Th Floors, Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A Nos.4338/Del/2014 िनधा"रणवष"/Assessment Year:2008-09 बनाम Dalmia Cement (Bharat)Ltd. Dcit (Ltu) (Now Known As M/S Dalmia Bharat Vs. Nbcc Plaza, Pushp Sugar & Industries Ltd.) Vihar, 11Th & 12Th Floors, Sector-Iii, New Delhi. Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A Nos.4447/Del/2014 िनधा"रणवष"/Assessment Year:2009-10 बनाम Dcit (Ltu) Dalmia Cement (Bharat)Ltd. Nbcc Plaza, Pushp Vihar, Vs. (Now Known As M/S Dalmia Sector-Iii, New Delhi. Bharat Sugar & Industries Ltd.) 11Th & 12Th Floors, Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent

Section 80I

…ld that the payment made to the Gujarat Electricity Board towards the cost of laying the overhead service lines constituted revenue expenditure and was an allowable deduction. 13. Our attention has also been drawn to CIT v. Madras Auto Service (P) Ltd. [1998] 233 ITR 468, wherein the Supreme Court summarized the law as laid down in Assam Bengal Cement Co. Ltd. v. CIT in the following words: “1. Outlay is deemed to be capital when it is made for the initiation of a business, for extension of a business, or for a substantial replacement of equipment. 2. Expenditure may be treated as properly attributable to capital…

M/S. Dalmia Bharat Sugar and Industries Limited, New Delhi vs. DCIT, New Delhi

In the result, appeals of the Revenue for AY 2009-10 to 2010-

ITA 4338/DEL/2014[2008-09]Status: DisposedITAT Delhi14 Nov 2023AY 2008-09

Bench: Shri Challa Nagendra Prasad & Shri M Balaganeshआ.अ.सं/.I.T.A Nos.4317/Del/2014 िनधा"रणवष"/Assessment Year:2008-09 बनाम Dcit (Ltu) Dalmia Cement (Bharat)Ltd. Nbcc Plaza, Pushp Vihar, Vs. (Now Known As M/S Dalmia Sector-Iii, New Delhi. Bharat Sugar & Industries Ltd.) 11Th & 12Th Floors, Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A Nos.4338/Del/2014 िनधा"रणवष"/Assessment Year:2008-09 बनाम Dalmia Cement (Bharat)Ltd. Dcit (Ltu) (Now Known As M/S Dalmia Bharat Vs. Nbcc Plaza, Pushp Sugar & Industries Ltd.) Vihar, 11Th & 12Th Floors, Sector-Iii, New Delhi. Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A Nos.4447/Del/2014 िनधा"रणवष"/Assessment Year:2009-10 बनाम Dcit (Ltu) Dalmia Cement (Bharat)Ltd. Nbcc Plaza, Pushp Vihar, Vs. (Now Known As M/S Dalmia Sector-Iii, New Delhi. Bharat Sugar & Industries Ltd.) 11Th & 12Th Floors, Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent

Section 80I

…ld that the payment made to the Gujarat Electricity Board towards the cost of laying the overhead service lines constituted revenue expenditure and was an allowable deduction. 13. Our attention has also been drawn to CIT v. Madras Auto Service (P) Ltd. [1998] 233 ITR 468, wherein the Supreme Court summarized the law as laid down in Assam Bengal Cement Co. Ltd. v. CIT in the following words: “1. Outlay is deemed to be capital when it is made for the initiation of a business, for extension of a business, or for a substantial replacement of equipment. 2. Expenditure may be treated as properly attributable to capital…

DCIT (Ltu), New Delhi vs. M/S. Dalmia Cement (Bharat) Ltd., New Delhi

In the result, appeals of the Revenue for AY 2009-10 to 2010-

ITA 4317/DEL/2014[2008-09]Status: DisposedITAT Delhi14 Nov 2023AY 2008-09

Bench: Shri Challa Nagendra Prasad & Shri M Balaganeshआ.अ.सं/.I.T.A Nos.4317/Del/2014 िनधा"रणवष"/Assessment Year:2008-09 बनाम Dcit (Ltu) Dalmia Cement (Bharat)Ltd. Nbcc Plaza, Pushp Vihar, Vs. (Now Known As M/S Dalmia Sector-Iii, New Delhi. Bharat Sugar & Industries Ltd.) 11Th & 12Th Floors, Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A Nos.4338/Del/2014 िनधा"रणवष"/Assessment Year:2008-09 बनाम Dalmia Cement (Bharat)Ltd. Dcit (Ltu) (Now Known As M/S Dalmia Bharat Vs. Nbcc Plaza, Pushp Sugar & Industries Ltd.) Vihar, 11Th & 12Th Floors, Sector-Iii, New Delhi. Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A Nos.4447/Del/2014 िनधा"रणवष"/Assessment Year:2009-10 बनाम Dcit (Ltu) Dalmia Cement (Bharat)Ltd. Nbcc Plaza, Pushp Vihar, Vs. (Now Known As M/S Dalmia Sector-Iii, New Delhi. Bharat Sugar & Industries Ltd.) 11Th & 12Th Floors, Hansalaya, 15, Barakhamba Road, New Delhi. Pan No. Aaacd2281K अपीलाथ" Appellant ""यथ"/Respondent

Section 80I

…ld that the payment made to the Gujarat Electricity Board towards the cost of laying the overhead service lines constituted revenue expenditure and was an allowable deduction. 13. Our attention has also been drawn to CIT v. Madras Auto Service (P) Ltd. [1998] 233 ITR 468, wherein the Supreme Court summarized the law as laid down in Assam Bengal Cement Co. Ltd. v. CIT in the following words: “1. Outlay is deemed to be capital when it is made for the initiation of a business, for extension of a business, or for a substantial replacement of equipment. 2. Expenditure may be treated as properly attributable to capital…

Standard Chartered Bank, Mumbai vs. DDIT (It) 2(1), Mumbai

In the result, the appeal filed by the assessee is partly allowed and appeal filed by the Revenue is dismissed

ITA 4867/MUM/2017[2001-02]Status: DisposedITAT Mumbai13 Nov 2023AY 2001-02

Bench: Shri Vikas Awasthy & Shri Gagan Goyalstandard Chartered Bank Taxation Department, 23-25, M. G. Road, 3Rd Floor, Fort, Mumbai-400 001 Pan: Aabcs4681D ..... Appellant Vs. Ddit (Intl. Tax)-2(1) Scindia House, Ballard Estate, N. M. Marg, Mumbai-400 038 ..... Respondent

For Appellant: Shri Madhur Agarwal, Ld. ARFor Respondent: Shri Anil Sant, Ld. DR
Section 14ASection 250Section 40

…n favor of the Appellant by the decision of the Co-ordinate bench of the Tribunal in the Appellant’s own case for the assessment year 1999-2000, wherein the Tribunal following the decision of Hon’ble Supreme Court in the case of Madras Auto Service Pvt. Ltd. [233 ITR 468] (Copy of decision is enclosed in the Bank’s legal paper book at page 336) allowed the deduction for the entire refurbishment expenses (Copy of A.Y. 1999-00 ITAT order is enclosed in the Bank’s legal paper book -refer page 157, para 13 and 14) which reads as under: Page 26 of 90 “13. Considered the rival submissions and material placed on recor…

Standard Chartered Bank, Mumbai vs. DDIT (It) 2(1), Mumbai

In the result, ground raised by the revenue is dismissed

ITA 3458/MUM/2009[2000-01]Status: DisposedITAT Mumbai13 Nov 2023AY 2000-01

Bench: Shri Vikas Awasthy & Shri Gagan Goyalstandard Chartered Bank Taxation Department, 23-25, M. G. Road, 3Rd Floor, Fort, Mumbai-400 001 Pan: Aabcs4681D ..... Appellant Vs. Ddit (Intl. Tax)-2(1) Scindia House, Ballard Estate, N. M. Marg, Mumbai-400 038 ..... Respondent

For Appellant: Shri Madhur Agarwal, Ld. ARFor Respondent: Shri Anil Sant, Ld. DR
Section 14ASection 250Section 40Section 44C

…n favor of the Appellant by the decision of the Co-ordinate bench of the Tribunal in the Appellant’s own case for the assessment year 1999-2000, wherein the Tribunal following the decision of Hon’ble Supreme Court in the case of Madras Auto Service Pvt. Ltd. [233 ITR 468] (Copy of decision is enclosed in the Bank’s legal paper book at page 305) allowed the deduction for the entire refurbishment expenses (Copy of A.Y. 1999-00 ITAT order was handed over during the hearing on 27 September 2023- refer page 9, para 13 and 14) which reads as under: “13. Considered the rival submissions and material placed on record, w…

M/S. Standard Chartered Bank, Mumbai vs. DDIT (I.T) - 2(1), Mumbai

In the result, the appeal of revenue is partly allowed

ITA 3377/MUM/2006[1998-1999]Status: DisposedITAT Mumbai13 Nov 2023AY 1998-1999

Bench: Shri Vikas Awasthy & Shri Gagan Goyalstandard Chartered Bank Taxation Department, 23-25, M. G. Road, 3Rd Floor, Fort, Mumbai-400 001 Pan: Aabcs4681D ..... Appellant Vs. Ddit (Intl. Tax)-2(1) Scindia House, Ballard Estate, N. M. Marg, Mumbai-400 038 ..... Respondent

For Appellant: Shri Madhur Agarwal, Ld. ARFor Respondent: Shri Anil Sant, Ld. DR
Section 115JSection 145Section 195Section 195(1)Section 250Section 40Section 90(2)

…n favor of the Appellant by the decision of the Co-ordinate bench of the Tribunal in the Appellant’s own case for the assessment year 1999-2000, wherein the Tribunal following the decision of Hon’ble Supreme Court in the case of Madras Auto Service Pvt. Ltd. [233 ITR 468](Copy of decision is enclosed in the Bank’s paper book at page 14) allowed the deduction for the entire refurbishment expenses (Copy of A.Y. 1999-00 ITAT order was handed over during the hearing on 27 September 2023) vide page 9, para 13 and 14) which reads as under: “13. Considered the rival submissions and material placed on record, we observed…