CIT v. Munjal Showa Ltd.

Honda Motorcycle and Scooters India Pvt. Ltd., Gurugram vs. DCIT, Circle- 2(1), Gurugram

In the result, both the appeals filed by the assessee are allowed

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble(Through Video Conferencing)

…reasons are applicable for running Royalty, and lumpsum Royalty payment should also be allowed as expenses. In this regard, reliance was placed on the following decisions:- [ij CIT v. Hero Honda Motors Ltd. 372 ITR 481 (Del.HC) [lij CIT V. Munjal Showa Ltd. 329 ITR 449 (Del.HC) (in) Maruti Suzuki India Ltd. vs Addl. CIT (ITA No.6021/Del/2012) (Assessment Year 2008-09] 42. The Ld.AR for the assessee further pointed out that this was a legal issue raised by the assessee where the facts were already on record and in the light of the decision of Hon'ble Supreme Court in National Thermal. Power Co.Ltd. vs CIT (199…

Stmicroelectronics Pvt. Ltd., New Delhi vs. DCIT, New Delhi

Bench: Shri N.K. Billaiya & Shri Kuldip Singh

…ion rendered by the coordinate Bench of the Tribunal in case of sister concern of the taxpayer i.e. ST Ericsson India Pvt. Ltd. for AY 2010-11 in ITA No.609/Del/2015 and also placed reliance on Hon’ble Delhi High Court in case of CIT vs. Munjal Showa Ltd. 329 ITR 449. Operative part of the decision rendered by the Hon’ble High Court is as under :- “when the training of the personnel of the assessee was imperative to run the business and is in the nature of technical support to the assessee it will certainly enhance the profit of the company on which it will pay the taxes, such expenditure cannot be treated a…

Honda Motorcycle and Scooter India Pvt. Ltd., Gurgaon vs. DCIT, Circle- 2(1), Gurgaon

In the result, the appeal of the assessee is allowed

Bench: Ms. Sushma Chowla, Vp & Shri N.K.Billaiya, Am आयकर अपील सं. / Ita No.7714/Del/2017 "नधा"रण वष" /Assessment Year 2012-13

…asons are applicable for running Royalty, and lumpsum Royalty payment should also be allowed as expenses. In this regard, reliance was placed on the following decisions:- [i] CIT v. Hero Honda Motors Ltd. 372 ITR 481 (Del.HC) [ii] CIT V. Munjal Showa Ltd. 329 ITR 449 (Del.HC) [iii] Maruti Suzuki India Ltd. vs Addl. CIT (ITA No.6021/Del/2012) [Assessment Year 2008-09] 42. The Ld.AR for the assessee further pointed out that this was a legal issue raised by the assessee where the facts were already on record and in the light of the decision of Hon’ble Supreme Court in National Thermal Power Co.Ltd. vs CIT […

Vatika Ltd., New Delhi vs. DCIT, New Delhi

Bench: Smt Beena A Pillai & Shri Prashant Maharishi

…vs. Gujarat Guardian Ltd., 222 CTR 526 (Del.) (iv) CIT vs. Jai Parabolic Springs Ltd., 306 ITR 42 (Del.) (v) CIT vs. Diamond Products Ltd., 177 Taxman 331 (Del.) (vi) CIT vs. Info Vergix Technologies Ltd., 323 ITR 52 (Del.) (vii) CIT vs. Munjal Showa ltd., 329 ITR 449 (Del.) (viii) CIT vs. Industrial Finances Corpn. of India Ltd., 185 Taxman 296 (Del.) (ix) CIT vs. Denso India Ltd., 318 ITR 140 (Del.) (x) CIT vs. Oswal Agro Mills Ltd., ITA No. 2/2002 dated 04.08.2015 (xi) Naraingarh Sugar Mills Ltd. vs. CIT, 204 Taxman 90 (Del.)(Mag) (xii) CIT vs. Panacea Biotech Ltd., ITA No. 24/2012 dated 17.01.2012 xi. Th…

St- Ericsson India Pvt. Ltd., New Delhi vs. ACIT, New Delhi

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

…sessment year 2009-10 and 2010-11 has decided the issue of allowability of training expenses as revenue in nature. While doing so, the Tribunal has relied upon the decision of the Hon'ble Delhi High Court in the case of CIT vs. Munjal Showa Ltd. reported in 329 ITR 449. He accordingly submitted that the expenditure on training of employees amounting to Rs.9,85,574/- should be allowed as 22 revenue expenditure. He submitted that if the same is allowed as revenue expenditure, then, grounds of appeal No.8 and 9 become infructuous. 38. So far as ground of appeal No.10 is concerned, he submitted that the assessee…

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

Appeal of the assessee is partly allowed for statistical purpose

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

…9 (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 Motors Ltd : 293 ITR 464 (M.P.) • • ITO v. Shivani…

St- Ericsson India Pvt. Ltd., New Delhi vs. DCIT, New Delhi

Bench: Shri Chandra Poojari & Shri Kuldip Singh

…d. AR for the assessee contended that the payment of training expenses is in the nature of revenue expenses and relied upon the decision rendered by Hon’ble High Court of Delhi in judgment cited as Commissioner of Income- tax-II vs. Munjal Showa Ltd. – (2010) 329 ITR 449 (Delhi). 62. The ratio of the judgment in case of Commissioner of Income-tax-II vs. Munjal Showa Ltd. (supra) rendered by Hon’ble Delhi High Court is that :- “when the training of the personnel of the assessee was imperative to run the business and is in the nature of technical support to the assessee it will certainly enhance the profit of the c…

DCIT, New Delhi vs. M/S. St Ericsson India Pvt. Ltd., New Delhi

Bench: Shri Chandra Poojari & Shri Kuldip Singh

…d. AR for the assessee contended that the payment of training expenses is in the nature of revenue expenses and relied upon the decision rendered by Hon’ble High Court of Delhi in judgment cited as Commissioner of Income- tax-II vs. Munjal Showa Ltd. – (2010) 329 ITR 449 (Delhi). 62. The ratio of the judgment in case of Commissioner of Income-tax-II vs. Munjal Showa Ltd. (supra) rendered by Hon’ble Delhi High Court is that :- “when the training of the personnel of the assessee was imperative to run the business and is in the nature of technical support to the assessee it will certainly enhance the profit of the c…

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

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

…ystems 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 Propack 325 ITR 185 (Bom), CIT v. Eicher Moto…

M/S. St-Ericsson India Private Limited, New Delhi vs. Addl. CIT, New Delhi

Bench: Shri R.S. Syal & Shri Kuldip Singh

…. AR for the assessee contended that the payment of training expenses is in the nature of revenue expenses and relied upon the decision rendered by Hon’ble High Court of Delhi in judgment cited as Commissioner of Income-tax-II vs. Munjal Showa Ltd. – (2010) 329 ITR 449 (Delhi). 62. The ratio of the judgment in case of Commissioner of Income-tax-II vs. Munjal Showa Ltd. (supra) rendered by Hon’ble Delhi High Court is that :- “when the training of the personnel of the assessee was imperative to run the business and is in the nature of technical support to the assessee it will certainly enhance the profit of the…

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

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

…113 (Del.) • Shriram Pistons and Rings Limited v CIT: 219 CTR 228 (Delhi) • Shriram Pistons and Rings Limited v CIT: 307 ITR 363 (Delhi) • CIT vs. Essel Propack: 325 ITR 185 (Bom) • CIT vEicher Motors Ltd: 163 Taxmann 556 (M.P.) • CIT V. Munjal Showa Ltd. : 329 ITR 449 (Del) • CIT v. Denso India P. Ltd.: ITAO 16/2008 (Del.) (HC) • CIT v. EKL Appliances Ltd : ITA No 1069/2011 (Del)(HC) • Honda Siel Cars v. ACIT : 111 TTJ 630 (Del) • CITv. Modi Revlon(P) Ltd: 210 Taxman 161(MAG.) (Del) • CIT v. Artos Breweries Ltd : [2013] 215 Taxman 80 (AP HC) • Fenner (India) Ltd v. ACIT : [2012] 139 ITD 406 (Chennai) • Hero…

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

Appeal is allowed

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

…not because transfer" of technology, but for providing "technical services", in such circumstance, the payment of royalty, which was a continuous process, should have been treated as revenue expenditure.” 15. In the case of CIT Vs. Munjal Showa Ltd. - [2010] 329 ITR 449 (Delhi), the facts of the case were that the assessee was engaged in the business of manufacture of shock absorbers used in automobile vehicles under license from S, a Japanese company. It incurred expenses on travel and stay of foreign technical personnel of S in Japan and also on designs and drawings charges payable to S. The assessee claim…

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

Appeal is allowed

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

…not because transfer" of technology, but for providing "technical services", in such circumstance, the payment of royalty, which was a continuous process, should have been treated as revenue expenditure.” 15. In the case of CIT Vs. Munjal Showa Ltd. - [2010] 329 ITR 449 (Delhi), the facts of the case were that the assessee was engaged in the business of manufacture of shock absorbers used in automobile vehicles under license from S, a Japanese company. It incurred expenses on travel and stay of foreign technical personnel of S in Japan and also on designs and drawings charges payable to S. The assessee claim…

DCIT, New Delhi vs. M/S. Baxter India (P) Ltd., Haryana

Appeal is allowed

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

…not because transfer" of technology, but for providing "technical services", in such circumstance, the payment of royalty, which was a continuous process, should have been treated as revenue expenditure.” 15. In the case of CIT Vs. Munjal Showa Ltd. - [2010] 329 ITR 449 (Delhi), the facts of the case were that the assessee was engaged in the business of manufacture of shock absorbers used in automobile vehicles under license from S, a Japanese company. It incurred expenses on travel and stay of foreign technical personnel of S in Japan and also on designs and drawings charges payable to S. The assessee claim…

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

Appeal is allowed

Bench: Shri I.C. Sudhir & Shri L.P. Sahu Assessment Year: 2007-08 Assessment Year: 2007-08 Maruti Suzuki India Ltd., Vs. Additional Cit, Plot No.1, Nelson Mandela Road, Range-6, Vasant Road, New Delhi. New Delhi. (Pan: Aaacm0829Q) (Appellant) (Respondent) Assessee By: S/Shri Ajay Vohra, Sr. Adv. Neeraj Jain, Rohit Jain, Adv. Romit Katyal & Ms. Tejasvi Jain, Cas Department By:Shri Amrendra Kumar, Cit(Dr)

…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), SLP dismissed vide order dated 16.11.2009 in S.L.P.(C) No.17346 of 2009 CIT v. Munjal Showa Ltd. : 329 ITR 449 (Del)(HC)  CIT v. Denso India P. Ltd.: ITA 16/2008 (Del.) (HC)   CIT v. EKL Appliances Ltd : ITA No 1069/2011 (Del)  CIT v. Hero Honda Motors Ltd: 372 ITR 481(Del) CIT v. Modi Revlon (P) Ltd : 210 Taxman 161(MAG.) (Del HC)   CIT v. Artos Breweries Ltd : [2013] 215 Taxman 80 (AP HC) CIT v. Essel Propack 325 ITR 185 (Bom-HC)  CIT v. Eicher…

Saic India Pvt. Ltd., Noida vs. DCIT, New Delhi

Bench: Shri Kuldip Singh & Shri N.K. Saini

…essee contended that recruitment and training expenses incurred by the assessee are revenue expenditure, hence allowable and relied upon judgment cited as Hindustan Aluminium Corporation Ltd. vs. CIT - (1986) 159 ITR 673 and CIT vs. Munjal Showa Ltd. - (2010) 329 ITR 449. 18. Hon’ble Supreme Court in judgment cited as Hindustan Aluminium Corporation Ltd. (supra) while deciding the identical issued held as under :- “CAPITAL OR REVENUE EXPENDITURE – ASSESSEE ESTABLISHING FACTOYR FOR MANUFACTURE OF ALUMINIUM – EXPENDITURE INCURRED IN 13 ITA No.6464/Del./2012 SENDING SOME EMPLOYEES TO U.S.A. FOR PRACTICAL TRAINING A…