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.

How many judgments cite CIT v. Madras Auto Service (P) Ltd.?

246 judgments on BharatTax cite CIT v. Madras Auto Service (P) Ltd. (233 ITR 468), spanning 2008 to 2026.

Which sections of the Income Tax Act does CIT v. Madras Auto Service (P) Ltd. come up under?

It is most often cited in judgments turning on Section 143(3), Section 14A, Section 254, Section 37(1), Section 115JB, Section 142(1).

CIT v. Madras Auto Service (P) Ltd. (233 ITR 468)

Computer Sciences Corporation India Private Limited, Chennai vs. ACIT, Chennai

ITA 1654/CHNY/2011[2007-08]Status: DisposedITAT Indore06 Oct 2023AY 2007-08

Bench: Shri Vijay Pal Rao & Shri B.M. Biyaniassessment Year: 2007-08 Computer Sciences Acit, Corporation India Private Company Circle 1(3), Limited, Chennai [Formerly Covansys (India) Private Limited], बनाम/ Unit 13, Block 2, Sdf Buildings, Vs. Madras Export Processing Zone, Tambaram, Chennai (Assessee / Appellant) (Revenue / Respondent) Pan: Aaacc1351M Assessee By Shri Neeraj Jain, Adv. Shri Abhishek Agrawal, Ca Revenue By Shri P.K. Mishra, Cit Dr Date Of Hearing 12.07.2023 Date Of Pronouncement

Section 10ASection 143(2)Section 143(3)Section 144C(5)Section 14ASection 92C

…to the lessor alongwith premises upon termination of lease, therefore the expenditure cannot be treated as incurred in capital field. Ld. AR sought to support this contention from the decision of Hon’ble Supreme Court in CIT Vs. Madras Auto Services (P) Ltd. 233 ITR 468. Ld. AR also submitted that the ITAT, Madras Bench has, in assessee’s own case of AY 2008-09 in ITA No. 1205/MDS/2013, remitted this issue to the file of AO following earlier order of AY 2004-05. 29. At that stage, the Bench invited attention of Ld. AR towards Explanation 1 to section 32(1) inserted by the Taxation Laws (Amendment and Misc. Provi…

The Assistant Commissioner of Income Tax, Circle-4(1), Visakhapatnam vs. Vizag Seaport Private Limited, Visakhapatnam

In the result, appeal of the Revenue is dismissed

ITA 99/VIZ/2020[2011-12]Status: DisposedITAT Visakhapatnam14 Jul 2023AY 2011-12

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अपील सं./ I.T.A. No.83/Viz/2020 ("नधा"रण वष" / Assessment Year :2011-12) Vizag Seaport Private Limited, Vs. Assistant Commissioner Of Visakhapatnam. Income Tax, Pan: Abepr 5035 K Circel-5(1), Visakhapatnam. (अपीलाथ"/ Appellant) (""यथ"/ Respondent)

For Appellant: Sri Madhur Agarwal, ARFor Respondent: Sri ON Hari Prasada Rao

Section 115JSection 143(1)Section 143(2)Section 143(3)Section 147Section 148

…by the assessee towards BOT Project should be treated as a revenue expenditure to be recovered over the License period of 30 years. This view is fortified by the decision of the Hon’ble Supreme Court in the case of Madras Auto Services Limited reported in (233 ITR 468) (SC). Consequently, the assessee is eligible to amortize the expenditure relating to the BOT project over the period of the benefit derived by the assessee, i.e., for a period of 30 years. Reliance placed by the Ld.AR on Noida Toll Bridge Co Ltd (Supra) could not be accepted because it was rightly distinguished in North Karnataka Expressway…

Vizag Seaport Private Limited, Visakhapatnam vs. The Assistant Commissioner Or Income Tax, Circle-5(1), Visakhapatnam

In the result, appeal of the Revenue is dismissed

ITA 83/VIZ/2020[2011-12]Status: DisposedITAT Visakhapatnam14 Jul 2023AY 2011-12

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अपील सं./ I.T.A. No.83/Viz/2020 ("नधा"रण वष" / Assessment Year :2011-12) Vizag Seaport Private Limited, Vs. Assistant Commissioner Of Visakhapatnam. Income Tax, Pan: Abepr 5035 K Circel-5(1), Visakhapatnam. (अपीलाथ"/ Appellant) (""यथ"/ Respondent)

For Appellant: Sri Madhur Agarwal, ARFor Respondent: Sri ON Hari Prasada Rao

Section 115JSection 143(1)Section 143(2)Section 143(3)Section 147Section 148

…by the assessee towards BOT Project should be treated as a revenue expenditure to be recovered over the License period of 30 years. This view is fortified by the decision of the Hon’ble Supreme Court in the case of Madras Auto Services Limited reported in (233 ITR 468) (SC). Consequently, the assessee is eligible to amortize the expenditure relating to the BOT project over the period of the benefit derived by the assessee, i.e., for a period of 30 years. Reliance placed by the Ld.AR on Noida Toll Bridge Co Ltd (Supra) could not be accepted because it was rightly distinguished in North Karnataka Expressway…

Vizag Seaport Private Limited, Mumbai vs. Deputy Commissioner of Income Tax 8(3)(2), Mumbai

In the result, appeal of the Revenue is dismissed

ITA 944/MUM/2018[2012-13]Status: DisposedITAT Visakhapatnam14 Jul 2023AY 2012-13

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अपील सं./ I.T.A. No.83/Viz/2020 ("नधा"रण वष" / Assessment Year :2011-12) Vizag Seaport Private Limited, Vs. Assistant Commissioner Of Visakhapatnam. Income Tax, Pan: Abepr 5035 K Circel-5(1), Visakhapatnam. (अपीलाथ"/ Appellant) (""यथ"/ Respondent)

For Appellant: Sri Madhur Agarwal, ARFor Respondent: Sri ON Hari Prasada Rao

Section 115JSection 143(1)Section 143(2)Section 143(3)Section 147Section 148

…by the assessee towards BOT Project should be treated as a revenue expenditure to be recovered over the License period of 30 years. This view is fortified by the decision of the Hon’ble Supreme Court in the case of Madras Auto Services Limited reported in (233 ITR 468) (SC). Consequently, the assessee is eligible to amortize the expenditure relating to the BOT project over the period of the benefit derived by the assessee, i.e., for a period of 30 years. Reliance placed by the Ld.AR on Noida Toll Bridge Co Ltd (Supra) could not be accepted because it was rightly distinguished in North Karnataka Expressway…

DCIT 7(3), Mumbai vs. Wyeth Ltd ( Formerly Known As Wyeth Lederle Ltd), Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 3508/MUM/2010[2004-05]Status: DisposedITAT Mumbai09 Jun 2023AY 2004-05

Bench: Shri Vikas Awasthy, Hon’Ble & Shri S. Rifaur Rahman, Hon'Blepfizer Limited V. Acit- Special Range 23 (Earlier Known As Wyeth Lederle Limited) [Now The Dcit-Circle 7(3)] The Capital, G-Block Aayakar Bhavan Bandra Kurla Complex Mumbai- 400020 Bandra (E), Mumbai -400012 Pan: Aaacp3334M (Appellant) (Respondent) Acit- Ltu V. M/S. Wyeth Limited 28Th Floor, Centre - 1 (Formerly Known As Wyeth Lederle Ltd) Rbc Mahindra Towers World Trade Centre 4Th Floor, A- Wing Cuffe Parade, Mumbai Dr G.M. Bhosale Road Worli, Mumbai- 400055 Pan: Aaacw2641Q (Appellant) (Respondent) Assessee Represented By : Shri Vishal Kalra Department Represented By : Smt. Sujatha Iyangar

Section 43(6)Section 80H

…ch would prove decisive i. M.K. Bros. (P) Ltd. vs CIT [1972] 86 ITR 38 (SC) ii. Travancore Sugars & Chemicals Ltd. vs Page No. 18 ITA NO. 3508/MUM/2010 (A.Y: 2004-05) M/s. Wyeth Limited iii. CIT [1966] 62 ITR 566 (SC) iv. CIT v. Madras Auto Services (P.) Ltd. 233 ITR 468 (SC) v. Empire Jute Co. Ltd. v. CIT 124 ITR 1 (SC) vi. Assam Bengal Cement Co. Ltd. Vs. Commissioner of ITC (27 ITR 34) (SC) vii. CIT vs B.N. Elias & Co. (P) Ltd. [1987] 168 ITR 190 (Cal.) viii. Gannon Norton Metal Diamond Dies Ltd. v. CIT [1987] 163 ITR 606 (Bom.) ix. FennerWoodroffe& Ltd. v. CIT [1976] 102 ITR 665 (Mad.) Cases wherein it is hel…

ACIT (Ltu-1), Mumbai vs. Bajaj Holdings & Investment Ltd, Mumbai

In the result, cross objection filed by the assessee is partly allowed

ITA 5030/MUM/2001[1997-98]Status: DisposedITAT Mumbai13 Apr 2023AY 1997-98

Bench: Shri Kuldip Singh, Hon’Ble & Shri S. Rifaur Rahman, Hon'Bleacit (Ltu-1) V. Bajaj Holdings Investment Ltd 29Th, Floor, Centre-1 226, Bajaj Bhavan, 2Nd Floor World Trade Centre Jamnalal Bajaj Marg, Nariman Point Mumbai- 400021 Cuffe Parade, Mumbai- 400075 Pan: Aaacb3370K (Appellant) (Respondent) C.O.No. 96/Mum/2002 [Arising Out Of Ita No.5030/Mum/2001 (A.Y: 1997-98)] Bhajaj Auto Limited V. Acit (Ltu-1) Bhajaj Bhavan 29Th, Floor, Centre-1 Nariman Point World Trade Centre Mumbai - 400020 Cuffe Parade, Mumbai- 400075 Pan: Aaacb3370K (Appellant) (Respondent) Assessee Represented By : Shri Percy Pardiwala& Ms. Vasanti Patel Department Represented By : Shri Rahul Kumar & Shri Vranda U Matkarri

Section 2(24)Section 35DSection 37(2)Section 80H

…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…

The Ramco Cements Limited, Rajapalayam vs. ACIT, Corporate Circle, Madurai

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

ITA 349/CHNY/2022[2011-12]Status: DisposedITAT Chennai12 Apr 2023AY 2011-12

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./I.T.A. No.349/Chny/2022 िनधा"रण वष"/Assessment Year: 2011-12 M/S. The Ramco Cements Limited, Vs. The Assistant Commissioner Of Ramamandiram, Income Tax, Rajapalayam 626 117, Corporate Circle 2, Tamil Nadu. Madurai. [Pan: Aabcm8375L] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri S. Muralidhar, F.C.A. ""थ" की ओर से/Respondent By : Shri M. Rajan, Cit सुनवाई की तारीख/ Date Of Hearing : 23.02.2023 घोषणा की तारीख /Date Of Pronouncement : 12.04.2023 आदेश /O R D E R Per V. Durga Rao: This Appeal Filed By The Assessee Is Directed Against The Order Of The Ld. Principal Commissioner Of Income Tax, Madurai-1, Madurai, Dated 30.03.2022 Relevant To The Assessment Year 2011-12. 2. Brief Facts Of The Case Are That The Assessee Filed The Return Of Income For The Assessment Year 2011-12 On 27.09.2011 Admitting Total Income Of ₹. 211,89,91,960/-. Subsequently, The Case Was Selected For Scrutiny & Assessment Was Completed Under Section 143(3) Of The 2

For Appellant: Shri S. Muralidhar, F.C.AFor Respondent: Shri M. Rajan, CIT

Section 143(3)Section 263Section 32Section 32(1)

…the Assessing Officer for fresh consideration. Accordingly, after perusal of the submissions of the assessee as well as copy of the agreement and by following the decision of the Hon’ble Supreme Court in the case of CIT v. Madras Auto Services P. Ltd. [1998] 233 ITR 468 (SC), the Assessing Officer has concluded that the expenditure incurred for installation of fly ash collection system by the assessee of ₹.2,99,39,360/- was revenue expenditure and allowed as deduction after allowing depreciation @ 15% on the ground that the assessee could not claim the right on the fly ash collection system installed at the prem…

DCIT Circle 1, Tirupur vs. M/S Eastern Exports Global Clothing (P) Limited, Tirupur

The appeal of the revenue stand dismissed

ITA 548/CHNY/2018[2014-15]Status: DisposedITAT Chennai10 Feb 2023AY 2014-15

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Shri T. Banusekar, (CA)- Ld. ARFor Respondent: Shri S. Senthil Kumaran, (CIT)-Ld. DR

Section 143(3)Section 28Section 32(1)

…आयकर अपीलीय अिधकरण ‘बी’ "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI माननीय +ी महावीर िसंह, उपा12 एवं माननीय +ी मनोज कुमार अ7वाल ,लेखा सद: के सम2। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.548/Chny/2018 (िनधाCरण वषC / Assessment Year: 2014-15) & आयकर अपील सं./ ITA No.2229/Chny/2018 (िनधाCरण वषC / Assessment Year: 2015-16) DCIT M/s. Eastman Exports Global Clothing (P) Ltd. बनाम/ 10, 12, 2nd Street, Kumar Nagar south, Circle-1 Vs. Tirupur Tirupur-641 603. "थायी लेखा सं./जीआइ आर सं./PAN/GIR No. AACCC-0952-E (अपीलाथ"/…

DCIT Circle 1, Tirupur vs. Eastman Exports Global Clothing (P) Limited, Tirupur

The appeal of the revenue stand dismissed

ITA 2229/CHNY/2018[2015-16]Status: DisposedITAT Chennai10 Feb 2023AY 2015-16

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Shri T. Banusekar, (CA)- Ld. ARFor Respondent: Shri S. Senthil Kumaran, (CIT)-Ld. DR

Section 143(3)Section 28Section 32(1)

…आयकर अपीलीय अिधकरण ‘बी’ "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI माननीय +ी महावीर िसंह, उपा12 एवं माननीय +ी मनोज कुमार अ7वाल ,लेखा सद: के सम2। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.548/Chny/2018 (िनधाCरण वषC / Assessment Year: 2014-15) & आयकर अपील सं./ ITA No.2229/Chny/2018 (िनधाCरण वषC / Assessment Year: 2015-16) DCIT M/s. Eastman Exports Global Clothing (P) Ltd. बनाम/ 10, 12, 2nd Street, Kumar Nagar south, Circle-1 Vs. Tirupur Tirupur-641 603. "थायी लेखा सं./जीआइ आर सं./PAN/GIR No. AACCC-0952-E (अपीलाथ"/…

Asst CIT Cir 2(2)(1), Mumbai vs. Mahindra & Mahindra Ltd, Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 1739/MUM/2015[2010-11]Status: DisposedITAT Mumbai04 Oct 2022AY 2010-11

Bench: Shri M. Balaganesh () & Smt. Kavitha Rajagopal () Mahindra & Mahindra Limited Vs Asst.Commissioner Of Income-Tax, Corporation Taxation, P.K. Kurne Circle-2(2)(1), Mumbai Chowk, Worli, Mumbai-400 018 Aayakar Bhavan, M.K. Road Pan : Aaacm3025E Mumbai-400 020 Appellant Respondent Asst.Commissioner Of Income-Tax, Vs 020Mahindra & Mahindra Limited Circle-2(2)(1), Mumbai Corporation Taxation, P.K. Kurne Aayakar Bhavan, M.K. Road Chowk, Worli, Mumbai-400 018 Mumbai-400 Pan : Aaacm3025E Appellant Respondent

Section 143(3)Section 144CSection 14ASection 35Section 40Section 80I

…ut which was never set up. The disputed expenditure was towards travelling expenses which was held by the Department to be capital in nature (para 14). In Para 20 the High Court has referred to the order of the SC in the case of Madras Auto Services (P) Ltd. (233 ITR 468) in which certain expenditure was held to be revenue in nature because no capital asset was generated by spending the amount in question. Concluding the issue in para 23 and applying the ratio in the case of Madras Auto (supra), the High Court held that the subject expenditure could not be directly related with the acquisition of any capital asse…

Mahindra & Mahindra Limited, Mumbai vs. ACIT, Cir -2(2)(1), Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 1676/MUM/2015[2010-11]Status: DisposedITAT Mumbai04 Oct 2022AY 2010-11

Bench: Shri M. Balaganesh () & Smt. Kavitha Rajagopal () Mahindra & Mahindra Limited Vs Asst.Commissioner Of Income-Tax, Corporation Taxation, P.K. Kurne Circle-2(2)(1), Mumbai Chowk, Worli, Mumbai-400 018 Aayakar Bhavan, M.K. Road Pan : Aaacm3025E Mumbai-400 020 Appellant Respondent Asst.Commissioner Of Income-Tax, Vs 020Mahindra & Mahindra Limited Circle-2(2)(1), Mumbai Corporation Taxation, P.K. Kurne Aayakar Bhavan, M.K. Road Chowk, Worli, Mumbai-400 018 Mumbai-400 Pan : Aaacm3025E Appellant Respondent

Section 143(3)Section 144CSection 14ASection 35Section 40Section 80I

…ut which was never set up. The disputed expenditure was towards travelling expenses which was held by the Department to be capital in nature (para 14). In Para 20 the High Court has referred to the order of the SC in the case of Madras Auto Services (P) Ltd. (233 ITR 468) in which certain expenditure was held to be revenue in nature because no capital asset was generated by spending the amount in question. Concluding the issue in para 23 and applying the ratio in the case of Madras Auto (supra), the High Court held that the subject expenditure could not be directly related with the acquisition of any capital asse…

M/S. Standard Chartered Bank, Mumbai vs. The ACIT (It)1(3), Mumbai

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

ITA 803/MUM/2009[1999-2000]Status: DisposedITAT Mumbai27 Sept 2022AY 1999-2000

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blestandard Chartered Bank V. Acit – Range-1(3) Taxation Department, 23-25 Scindia House, Ballard Estate M.G. Road, 3Rd Floor N.M. Marg, Mumbai - 400038 Fort, Mumbai - 400001 Pan: Aabcs4681D (Appellant) (Respondent) Adit (It)– 2(3) V. Standard Chartered Bank Room No. 120, 1St Floor Taxation Department, 23-25 Scindia House, Ballard Estate M.G. Road, 3Rd Floor N.M. Marg, Mumbai - 400038 Fort, Mumbai - 400001 Pan: Aabcs4681D (Appellant) (Respondent) Shri P.J. Pardiwala & Assessee Represented By : Shri Fenil Bhatt Shri Soumendu Kumar Dash Department Represented By :

Section 115JSection 14ASection 90Section 90(2)

…ience as it is in a customer centric industry. Ld. AR relying on the following case laws prayed that the above expenses be disallowed: - 9 ITA NO. 803 & 850/MUM/2009 (A.Y. 1999-2000) Standard Chartered Bank Refurbishment: (i). Madras Auto Service Pvt. Ltd., [233 ITR 468 (SC) (ii). R.B Bansilal Abirchand Spg & Weaving Mills vs. CIT 31 ITR 427 (Nagpur- HC) (iii). CIT vs. Rex Talkies (18 Taxman 363 (Karnataka - HC) (iv). CIT vs. Oxford University Press 108 ITR 166 (Bom - HC) (v). ACIT vs. India United Mills Ltd (8 Taxman 182) (Bom - HC) (vi). Empire Jute Co. Ltd - 124 ITR 1 (SC) (vii). Tea Estate (P) Ltd. - 198 ITR…