CIT v. Mysore Spun Concrete Pipe Pvt Ltd (

194 ITR 159High Court1992#3259 most cited

What is CIT v. Mysore Spun Concrete Pipe Pvt Ltd ( authority for?

Expenditure incurred on the replacement of parts of machinery, such as moulds, is treated as revenue expenditure if it does not enhance the production capacity or life of the existing machinery and is akin to maintenance.

36

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2011 to 2025.

Also referred to as

CIT v. Mysore Spun Concrete Pipe Pvt Ltd · 194 ITR 159 · revenue expenditure · capital expenditure · replacement of parts · moulds · machinery · maintenance · production capacity

Sections most often in play

Section 43BSection 143(3)Section 139(1)Section 144BSection 263Section 35DSection 36(1)(vii)Section 37(1)

Issues it is cited on

revenue expenditurecapital expenditurecompanytotal incomebusiness

Judgments citing CIT v. Mysore Spun Concrete Pipe Pvt Ltd (

DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2, KOTA, KOTA vs. RISHIRAJ SINGH, JHALAWAR

In the result, the appeal of the revenue is dismissed

ITA 1073/JPR/2025[2023-24]Status: DisposedITAT Jaipur19 Nov 2025AY 2023-24
For Appellant: Sh. Vinod Gupta, CA &For Respondent: \nMohd. Azharuddin, CA
Section 139(1)Section 143(3)Section 68

…isting machinery in the course of their working will\nbe a revenue expenditure. In the instant case having regard to the nature of the business of the\nassessee and applying the principle of law enunciated in Mysore Spun Concrete Pipe Pvt. Ltd.'s\ncase [1992] 194 ITR 159 (Kar), the Tribunal has reached a conclusion that the moulds in\nquestion do not enhance the capacity of the existing machines and are merely replacements for\nthe moulds damaged during the process of manufacture of glass. It is also evident from the format\nof the question proposed by the Revenue, that finding of the Tribunal to the effect that…

M/S N.A.M. EXPRESSWAY LIMITED,DELHI vs. ACIT., CIRCLE-5(1), HYDERABAD

In the result, appeal filed by the assessee is allowed

ITA 580/HYD/2024[2018-19]Status: DisposedITAT Hyderabad28 Jan 2025AY 2018-19

Bench: Shri Manjunatha G. & Shri K.Narasimha Charyआ.अपी.सं /Ita No.580/Hyd/2024 (निर्धारण वर्ा/Assessment Year: 2018-19) N.A.M.Expressway Ltd. Vs. Acit, Circle-5(1) Delhi Hyderabad [Pan : Aadcn3131D] (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri Salil Kapoor, Ms Ananya Kapoor & Shri Tarun Chanana, Ar (Through Virtual Mode) रधजस् व द्वधरध/Revenue By: Shri Shiva Sewak, Cit-Dr सुिवधई की तधरीख/Date Of Hearing: 30/10/2024 घोर्णध की तधरीख/Date Of 28/01/2025 Pronouncement: आदेश / Order Per. Manjunatha G., A.M: This Appeal Filed By The Assessee Is Directed Against The Order Dated 20.03.2019 Of The Learned Principal Commissioner Of Income Tax [Ld.Pcit], Hyderabad-4 Pertaining To A.Y.2018-19 On The Following Grounds :

For Appellant: Shri Salil KapoorFor Respondent: Shri Shiva Sewak, CIT-DR
Section 143(3)Section 263Section 37(1)Section 43B

…ame into existence, nor was their benefit of an enduring nature. It neither enhanced the life of existing machines of which these tools and dyes were only parts, nor had their production capacity increased. In CIT v. Mysore Spun Concrete Pipe (P.) Ltd.] 1992] 194 ITR 159/60 Taxman 170 (Kar.). the High Court held that the replacement of moulds was not in the nature of replacement of a capital machinery but in the nature of replacement of apart of the machinery which, in turn, was in the nature of maintenance of machinery installed in the factory. Such an expenditure was treated as revenue expenditure. With this po…

ACIT., CIRCLE-3(1), HYDERABAD vs. SYNERGIES CASTINGS LIMITED, HYDERABAD

In the result, all the appeals of the assessee are allowed in its favour

ITA 641/HYD/2024[2021]Status: DisposedITAT Hyderabad06 Sept 2024

Bench: Shri Prakash Chand Yadav & Shri Madhusudan Sawdia

For Appellant: NoneFor Respondent: : Shri Srikanth Reddy Y, DR
Section 143(1)(a)Section 32(1)(ii)Section 36(1)(va)

…according to the nature of industry. In the case of the assessee it is evident that the life span of the moulds is only 12 months. In similar circumstances, the Hon’ble Karnataka High Court in the case of CIT vs. Mysore Spun Concrete Pipe Pvt Ltd (reported in 194 ITR 159) has held that the expenditure on moulds has to be treated as revenue in nature. Similarly, the Hon’ble Delhi High Court in the case of CIT vs. Jagajit Industries Limited reported in 241 ITR 556 had also held that considering the life span of moulds the expenditure towards the same has to be treated as revenue in nature. 4 Therefore, appreciatin…

COMMISSIONER OF INCOME TAX, KOL-I, KOL vs. M/S. JINDAL INDIA LTD.

In the result, the appeal filed by the revenue

ITA/95/2011HC Calcutta16 Mar 2023

Bench: : The Hon’Ble Justice T.S. Sivagnanam & The Hon’Ble Justice Hiranmay Bhattacharyya Date : 16Th March, 2023 Appearance : Mr. Smarajit Roychowdhury, Adv. ...For The Appellant. Mr. J. P. Khaitan, Sr. Adv. Mr. Sanjoy Bhowmick, Adv. Ms. Swapna Das, Adv. ...For The Respondent. The Court : This Appeal Filed By The Revenue Under Section 260A Of The Income Tax Act, 1961 (The ‘Act’ For Brevity) Is Directed Against The Order Dated 30Th November, 2010 Passed By The Income Tax Appellate Tribunal, “A” Bench, Kolkata (The Tribunal) In Ita No.368 & 369/Kol/2010 Years 2005- 06 & 2006-07. The Revenue Has Raised The Following Substantial Questions Of Law For Consideration:

Section 2(18)(b)Section 2(22)(e)Section 260ASection 31

…enditure should be treated as capital expenditure. This aspect was also considered in the case of Malhotra Industrial Corporation taking note of the decision of the High Court of Karnataka in the case of Mysore Spun Concrete Pipe Pvt. Ltd. reported in (1992) 194 ITR 159. That apart, the decision of the Hon’ble Supreme Court in the case of Commissioner of Income Tax vs. Sarvana Spinning Mills P. Ltd. reported in (2007) 293 ITR 201(SC) will be a clear answer to the issue under consideration. The Hon’ble Supreme Court in the said decision held as follows: “To give an example, a compressor is an important part of…

ISHWAR ISPAT INDUSTRIES PRIVATE LIMITED,RAIPUR vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 2(1), RAIPUR

In the result, the appeal of assessee is allowed

ITA 172/RPR/2018[2010-11]Status: DisposedITAT Raipur21 Sept 2022AY 2010-11

Bench: Shri Ravish Sood, Jm & Shri Arun Khodpia, Am आयकर अऩीऱ सं./Ita No.172/Rpr/2018 ननधाारण वषा / Assessment Year :2010-2011) Ishwar Ispat Industries Pvt. Ltd., Vs Dcit-2(1), Raipur Plot No.168, Sector-C, Industrial Area, Urla, Raipur (C.G.) Pan No. : Aabci 4258 C (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

For Appellant: Shri R.B.Doshi, CAFor Respondent: Shri G.N.Singh, Sr. DR
Section 154

…(1971) 82 ITR 50 (SC) ii) Satish Kumar Aggarwal (2011) 8 ITR 424 (Delhi) iii) Tata Communications Ltd. (2014) 163 TTJ 106 (Mum) iv) Kalpesh S. Patel (2015) 44 CCH 350 (Ahd); and v) S.R.Industries Ltd. (2016) 156 ITD 125 (Chandigarh) Mysore Spun Pipe Pvt. Ltd. 194 ITR 159 (Kar) vi) 5. On other hand, ld. Sr. DR relied on the orders of the authorities below. 6. We have heard rival submissions and perused the material evidence available on record. We have also observed the legal pronouncements as relied upon by the assessee. In these judgments the 4 findings of the hon’ble courts or coordinate benches of the ITAT wer…

M/S EDISON GENTECH PVT LTD,CHENNAI vs. ITO CORP WARD 2 (1), CHENNAI

In the result, the appeal of the assessee is allowed

ITA 713/CHNY/2018[2012-13]Status: DisposedITAT Chennai26 Aug 2022AY 2012-13

Bench: Shri G. Manjunatha & Shri Sonjoy Sarmaआयकर अपील सं./I.T.A No.:713/Chny/2018 िनधा"रण वष"/ Assessment Year: 2012-13 M/S. Edison Gentech Private Limited, The Income Tax Officer, No.107-A/115-A, Kakkan Colony, Vs. Corporate Ward – 2(1), Park Side Street, Aayakar Bhavan, Nungambakkam, Nungambakkam, Chennai – 600 034. Chennai – 600 034. Pan : Aabce 3059P (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ"क"ओरसे/Appellant By : Ms. N.V. Lakshmi, Advocate ""यथ"क"ओरसे/Respondent By : Mr. A.S. Sumanth, Jcit सुनवाई क" तार"ख/Date Of Hearing : 18.08.2022 घोषणा क" तार"ख/Date Of Pronouncement : 26.08.2022

For Appellant: Ms. N.V. Lakshmi, AdvocateFor Respondent: Mr. A.S. Sumanth, JCIT
Section 143(2)Section 143(3)

…existing machinery in the course of their working will be a revenue expenditure. In the instant case having regard to the nature of the business of the assessee and applying the principle of law enunciated in Mysore Spun Concrete Pipe Pvt. Ltd.’s case [1992] 194 ITR 159 (Kar), the Tribunal has reached a conclusion that the moulds in question do not enhance the capacity of the existing machines and are merely replacements for the moulds damaged during the process of manufacture of glass. It is also evident from the format of the question proposed by the Revenue, that finding of the Tribunal to the effect that the…

M/S. AMBICA ALLOYS & STEEL INDIA LTD.,,AHMEDABAD vs. THE DY, CIT, CIRCLE-2(1)(1),, AHMEDABAD

In the result, ground number 2 of the assessee’s appeal is allowed

ITA 1009/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad27 Jul 2022AY 2012-13

Bench: Us, Ld. Counsel For The Assessee Has Submitted That He Shall Not Be Pressing Ground Number 1. Accordingly, Ground Number 1 Of The Assessee’S Appeal Is Being Dismissed As Withdrawn/Not Pressed.

For Appellant: Shri Ketan Shah, A.R. &For Respondent: Shri Purshottam Kumar, Sr. D.R

…existing machinery in the course of their working will be a revenue expenditure. In the instant case having regard to the nature of the business of the assessee and applying the principle of law enunciated in Mysore Spun Concrete Pipe Pvt. Ltd.’s case [1992] 194 ITR 159 (Kar), the Tribunal has reached a conclusion that the moulds in question do not enhance the capacity of the existing machines and are merely replacements for the moulds damaged during the process of manufacture of glass. It is also evident from the format of the question proposed by the Revenue, that finding of the Tribunal to the effect that the…

TPR AUTOPARTS MFG INDIA PVT. LTD.,NEW DELHI vs. DCIT, CIRCLE- 25(1), NEW DELHI

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

ITA 7100/DEL/2018[2012-13]Status: HeardITAT Delhi21 Apr 2022AY 2012-13
Section 143(3)

…evenue expenditure. 5. In the instant case having regard to the nature of the business of the assessee and applying the principle of law enunciated in Mysore Spun Page 8 of 11 TPR Autoparts Mfg India Pvt. Ltd. vs. DCIT Concrete Pipe Pvt. Ltd.'s case [1992] 194 ITR 159 (Kar), the Tribunal has reached a conclusion that the moulds in question do not enhance the capacity of the existing machines and are mere replacements for the moulds damaged during the process of manufacture of glass. It is also evident from the format of the question proposed by the Revenue, that the finding of the Tribunal to the effect that t…

DY. COMMISSIONER OF INCOME TAX , CIRCLE-2(2), HYDERABAD vs. GLOBAL ALUMINIUM PRIVATE LIMITED , HYDERABAD

Appeals are dismissed

ITA 678/HYD/2019[2016-17]Status: DisposedITAT Hyderabad16 Jul 2021AY 2016-17

Bench: Shri S.S. Godara & Shri L.P. Sahu

For Appellant: Sri Y. Ratnakar, A.RFor Respondent: Smt. N. Esther, D.R
Section 143(3)Section 234B

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES : BENCH “A” HYDERABAD (Through Video Conference) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER I.T.A. No. 968/Hyd./2017 A.Y : 2012-13 I.T.A. No. 1374/Hyd./2017 A.Y : 2013-14 I.T.A. No. 483/Hyd./2019 A.Y : 2014-15 I.T.A. No. 678/Hyd./2019 A.Y : 2016-17 Dy.CIT, Circle 2(2) vs. M/s Global Aluminium Pvt. Ltd. Hyderabad \ Secunderabad ITO, Ward 2(2), Hyd [PAN: AAACG7398C] (Appellant) (Respondent) For Revenue: Smt. N. Esther, D.R. For Assessee: Sri Y. Ratnakar, A.R Date of Hearing : 01/06/2021 Date of Pronouncement : 16/07…

INCOME TAX OFFICER, WARD-2(2), HYDERABAD vs. GLOBAL ALUMINIUM PRIVATE LIMITED , HYDERABAD

Appeals are dismissed

ITA 483/HYD/2019[2014-15]Status: DisposedITAT Hyderabad16 Jul 2021AY 2014-15

Bench: Shri S.S. Godara & Shri L.P. Sahu

For Appellant: Sri Y. Ratnakar, A.RFor Respondent: Smt. N. Esther, D.R
Section 143(3)Section 234B

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES : BENCH “A” HYDERABAD (Through Video Conference) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER I.T.A. No. 968/Hyd./2017 A.Y : 2012-13 I.T.A. No. 1374/Hyd./2017 A.Y : 2013-14 I.T.A. No. 483/Hyd./2019 A.Y : 2014-15 I.T.A. No. 678/Hyd./2019 A.Y : 2016-17 Dy.CIT, Circle 2(2) vs. M/s Global Aluminium Pvt. Ltd. Hyderabad \ Secunderabad ITO, Ward 2(2), Hyd [PAN: AAACG7398C] (Appellant) (Respondent) For Revenue: Smt. N. Esther, D.R. For Assessee: Sri Y. Ratnakar, A.R Date of Hearing : 01/06/2021 Date of Pronouncement : 16/07…

DCIT, CIRCLE-2(2), HYDERABAD, HYDERABAD vs. GLOBAL ALUMINIUM PVT. LTD., SECUNDERABAD, SECUNDERABAD

Appeals are dismissed

ITA 968/HYD/2017[2012-13]Status: DisposedITAT Hyderabad16 Jul 2021AY 2012-13

Bench: Shri S.S. Godara & Shri L.P. Sahu

For Appellant: Sri Y. Ratnakar, A.RFor Respondent: Smt. N. Esther, D.R
Section 143(3)Section 234B

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES : BENCH “A” HYDERABAD (Through Video Conference) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER I.T.A. No. 968/Hyd./2017 A.Y : 2012-13 I.T.A. No. 1374/Hyd./2017 A.Y : 2013-14 I.T.A. No. 483/Hyd./2019 A.Y : 2014-15 I.T.A. No. 678/Hyd./2019 A.Y : 2016-17 Dy.CIT, Circle 2(2) vs. M/s Global Aluminium Pvt. Ltd. Hyderabad \ Secunderabad ITO, Ward 2(2), Hyd [PAN: AAACG7398C] (Appellant) (Respondent) For Revenue: Smt. N. Esther, D.R. For Assessee: Sri Y. Ratnakar, A.R Date of Hearing : 01/06/2021 Date of Pronouncement : 16/07…

DY. COMMISSIONER OF INCOME TAX, CIRCLE-2(2), HYDERABAD vs. GLOBAL ALUMINIUM PRIVATE LIMITED, SECUNDERABAD

Appeals are dismissed

ITA 1374/HYD/2017[2013-14]Status: DisposedITAT Hyderabad16 Jul 2021AY 2013-14

Bench: Shri S.S. Godara & Shri L.P. Sahu

For Appellant: Sri Y. Ratnakar, A.RFor Respondent: Smt. N. Esther, D.R
Section 143(3)Section 234B

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES : BENCH “A” HYDERABAD (Through Video Conference) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER I.T.A. No. 968/Hyd./2017 A.Y : 2012-13 I.T.A. No. 1374/Hyd./2017 A.Y : 2013-14 I.T.A. No. 483/Hyd./2019 A.Y : 2014-15 I.T.A. No. 678/Hyd./2019 A.Y : 2016-17 Dy.CIT, Circle 2(2) vs. M/s Global Aluminium Pvt. Ltd. Hyderabad \ Secunderabad ITO, Ward 2(2), Hyd [PAN: AAACG7398C] (Appellant) (Respondent) For Revenue: Smt. N. Esther, D.R. For Assessee: Sri Y. Ratnakar, A.R Date of Hearing : 01/06/2021 Date of Pronouncement : 16/07…

DCIT LTU, MUMBAI vs. BAJAJ HOLDING & INVESTMENTS LTD, MUMBAI

In the result, all the appeals filed by the revenue are dismissed

ITA 6963/MUM/2014[1993-94]Status: DisposedITAT Mumbai28 Aug 2020AY 1993-94

Bench: Shri M.Balaganesh, Am & Shri Ram Lal Negi, Jm

Section 143(3)Section 254

…IN THE INCOME TAX APPELLATE TRIBUNAL (VIRTUAL COURT DB-III), ‘B‘ BENCH MUMBAI BEFORE SHRI M.BALAGANESH, AM & SHRI RAM LAL NEGI, JM ITA No.6324/Mum/2010 (Assessment Year :1991-1992) & Assistant Commissioner of Vs. M/s. Bajaj Holdings & Income Tax(LTU-1), Mumbai Investment Ltd (Formerly known 29th Floor, Centre-I, World as M/s. Bajaj Auto Ltd.,) 226, Bajaj Bhavan, 2nd Floor Trade Center, Cuffe Parade Mumbai – 400 005 Jamnalal Bajaj Marg, Nariman Point Mumbai – 400 021 PAN/GIR No. AAACB3370K (Appellant) .. (Respondent) Revenue by Shri Rahul Raman- CIT DR Assessee by Shri Percy Pardiwala, Senior Advocate Date of H…

DENA BANK,MUMBAI vs. PRINCIPAL COMMISSIONER OF INCOME TAX 2, MUMBAI

In the result, appeal filed by the assesse is allowed

ITA 2159/MUM/2018[2014-15]Status: DisposedITAT Mumbai23 Jan 2020AY 2014-15

Bench: Shri G. Manjunatha & Shri Ravish Sooddena Bank Vs. Pcit-2 Room No.344, 3Rd Floor Accounts Department Dena Bank Building Aaykar Bhawan 2Nd Floor M.K.Road 17/B, Horniman Circle Mumbai-400 020 Fort, Mumbai-400 023 Pan/Gir No.Aaacd4249B Appellant) .. Respondent)

Section 115Section 143(3)Section 263Section 36(1)(vii)Section 36(1)(viia)Section 43B

…ame into existence, nor was their benefit of an enduring nature. It neither enhanced the life of existing machines of which these tools and dyes were only parts, nor had their production capacity increased. In CIT v. Mysore Spun Concrete Pipe (P.) Ltd.] 1992] 194 ITR 159/60 Taxman 170 (Kar.). the High Court held that the replacement of moulds was not in the nature of replacement of a capital machinery but in the nature of replacement of apart of the machinery which, in turn, was in the nature of maintenance of machinery installed in the factory. Such an expenditure was treated as revenue expenditure. With this po…

SYNERGIES CASTINGS LIMITED,HYDERABAD vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3(3), HYDERABAD

In the result, all the appeals of the assessee are allowed in its favour

ITA 1827/HYD/2017[2014-15]Status: DisposedITAT Hyderabad19 Dec 2019AY 2014-15

Bench: Smt. P. Madhavi Devi & Shri A. Mohan Alankamony

For Appellant: Sri S. Rama RaoFor Respondent: Sri Nilanjan Dey, DR
Section 143(3)Section 32

…according to the nature of industry. In the case of the assessee it is evident that the life span of the moulds is only 12 months. In similar circumstances, the Hon’ble Karnataka High Court in the case of CIT vs. Mysore Spun Concrete Pipe Pvt Ltd (reported in 194 ITR 159) has held that the expenditure on moulds has to be treated as revenue in nature. Similarly, the Hon’ble Delhi High Court in the case of CIT vs. Jagajit Industries Limited reported in 241 ITR 556 had also held that considering the life span of moulds the expenditure towards the same has to be treated as revenue in nature.Therefore, appreciating th…

SYNERGIES CASTINGS LIMITED,HYDERABAD vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3(3), HYDERABAD

In the result, all the appeals of the assessee are allowed in its favour

ITA 1826/HYD/2017[2013-14]Status: DisposedITAT Hyderabad19 Dec 2019AY 2013-14

Bench: Smt. P. Madhavi Devi & Shri A. Mohan Alankamony

For Appellant: Sri S. Rama RaoFor Respondent: Sri Nilanjan Dey, DR
Section 143(3)Section 32

…according to the nature of industry. In the case of the assessee it is evident that the life span of the moulds is only 12 months. In similar circumstances, the Hon’ble Karnataka High Court in the case of CIT vs. Mysore Spun Concrete Pipe Pvt Ltd (reported in 194 ITR 159) has held that the expenditure on moulds has to be treated as revenue in nature. Similarly, the Hon’ble Delhi High Court in the case of CIT vs. Jagajit Industries Limited reported in 241 ITR 556 had also held that considering the life span of moulds the expenditure towards the same has to be treated as revenue in nature.Therefore, appreciating th…

SYNERGIES CASTINGS LIMITED ,HYDERABAD vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3(2) , HYDERABAD

In the result, all the appeals of the assessee are allowed in its favour

ITA 1825/HYD/2017[2012-13]Status: DisposedITAT Hyderabad19 Dec 2019AY 2012-13

Bench: Smt. P. Madhavi Devi & Shri A. Mohan Alankamony

For Appellant: Sri S. Rama RaoFor Respondent: Sri Nilanjan Dey, DR
Section 143(3)Section 32

…according to the nature of industry. In the case of the assessee it is evident that the life span of the moulds is only 12 months. In similar circumstances, the Hon’ble Karnataka High Court in the case of CIT vs. Mysore Spun Concrete Pipe Pvt Ltd (reported in 194 ITR 159) has held that the expenditure on moulds has to be treated as revenue in nature. Similarly, the Hon’ble Delhi High Court in the case of CIT vs. Jagajit Industries Limited reported in 241 ITR 556 had also held that considering the life span of moulds the expenditure towards the same has to be treated as revenue in nature.Therefore, appreciating th…

SYNERGIES CASTINGS LIMITED ,HYDERABAD vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3(2) , HYDERABAD

In the result, all the appeals of the assessee are allowed in its favour

ITA 1824/HYD/2017[2011-2012]Status: DisposedITAT Hyderabad19 Dec 2019AY 2011-2012

Bench: Smt. P. Madhavi Devi & Shri A. Mohan Alankamony

For Appellant: Sri S. Rama RaoFor Respondent: Sri Nilanjan Dey, DR
Section 143(3)Section 32

…according to the nature of industry. In the case of the assessee it is evident that the life span of the moulds is only 12 months. In similar circumstances, the Hon’ble Karnataka High Court in the case of CIT vs. Mysore Spun Concrete Pipe Pvt Ltd (reported in 194 ITR 159) has held that the expenditure on moulds has to be treated as revenue in nature. Similarly, the Hon’ble Delhi High Court in the case of CIT vs. Jagajit Industries Limited reported in 241 ITR 556 had also held that considering the life span of moulds the expenditure towards the same has to be treated as revenue in nature.Therefore, appreciating th…

SYNERGIES CASTINGS LTD., HYD,HYDERABAD vs. DCIT, CIR-3(3), HYD, HYDERABAD

In the result, all the appeals of the assessee are allowed in its favour

ITA 178/HYD/2016[2009-10]Status: DisposedITAT Hyderabad19 Dec 2019AY 2009-10

Bench: Smt. P. Madhavi Devi & Shri A. Mohan Alankamony

For Appellant: Sri S. Rama RaoFor Respondent: Sri Nilanjan Dey, DR
Section 143(3)Section 32

…according to the nature of industry. In the case of the assessee it is evident that the life span of the moulds is only 12 months. In similar circumstances, the Hon’ble Karnataka High Court in the case of CIT vs. Mysore Spun Concrete Pipe Pvt Ltd (reported in 194 ITR 159) has held that the expenditure on moulds has to be treated as revenue in nature. Similarly, the Hon’ble Delhi High Court in the case of CIT vs. Jagajit Industries Limited reported in 241 ITR 556 had also held that considering the life span of moulds the expenditure towards the same has to be treated as revenue in nature.Therefore, appreciating th…

TPR AUTOPARTS MFG INDIA PVT. LTD.,NEW DELHI vs. DCIT, CIRCLE- 25(2), NEW DELHI

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

ITA 4744/DEL/2017[2011-12]Status: DisposedITAT Delhi13 Dec 2019AY 2011-12

Bench: Shri R.K. Panda & Ms Suchitra Kambleassessment Year: 2011-12 Tpr Autoparts Mfg. India Pvt. Ltd., Vs Dcit, Mayur Batra & Co., Ca, Circle-25(2), 7, Barakhamba Road, New Delhi. New Delhi. Pan: Aacct9433D (Appellants) (Respondents) Assessee By : Shri C.S. Aggarwal, Sr. Advocate Deptt. By : Shri H.K. Choudhary, Cit, Dr & Ms Nidhi Sharma, Sr. Dr Date Of Hearing : 17.09.2019 Date Of Pronouncement : 13.12.2019 Order Per R.K. Panda, Am: This Appeal Filed By The Assessee Is Directed Against The Order Dated 27Th December, 2016 Of The Cit(A)-44, New Delhi, Relating To The Assessment Year 2011-12. 2. Facts Of The Case, In Brief, Are That The Assessee Company Is A Wholly Owned Subsidiary Of M/S Teikoku Piston Ring Co. Ltd. (Japan). It Had Been Incorporated On 27.03.2008 With The Main Object To Carry On The Business To Manufacture, Export, Buy & Sell & Otherwise Deal In ‘Moulded’ Automobile Products I.E. Piston Rings, Cylinder Liners, Valve Seat Rings & Other Automotive Parts. It Is The Third Year Of Its Existence, Though Effectively It Is The Second Year Of Production After Its Set Up & Commencement Of Business In The Fy 2009-10. It Filed Its Return Of Income On 29.11.2011 Declaring A Loss Of Rs.6,45,23,822/-. Since The Assessee Had Entered Into Certain International Transactions With Its Aes, The Assessing Officer Referred The Matter To The Transfer Pricing Officer U/S 92Ca Of The Act For Determination Of The Arm’S Length Price Of Such International Transactions. The Tpo, During The Course Of Tp Assessment Proceedings, Observed That The Assessee Company Has Undertaken The Following International Transactions With Its Aes:- No. Nature Of Transaction Method Amount (In Rs.) Purchase Of Raw 1 5,85,47,963 Materials/Assets/Spares Tnmm Payment Of Royalty 76,32,183 2 Tnmm 3 Reimbursement Of Expenses To Ae 9,14,253 -

For Appellant: Shri C.S. Aggarwal, Sr. Advocate
Section 92C

…isting machinery in the course of their working will be a revenue expenditure. 5. In the instant case having regard to the nature of the business of the assessee and applying the principle of law enunciated in Mysore Spun Concrete Pipe Pvt. Ltd.'s case [1992] 194 ITR 159 (Kar), the Tribunal has reached a conclusion that the moulds in question do not enhance the capacity of the existing machines and are mere replacements for the moulds damaged during the process of manufacture of glass. It is also evident from the format of the question proposed by the Revenue, that the finding of the Tribunal to the effect that t…

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CIT v. Mysore Spun Concrete Pipe Pvt Ltd ( (194 ITR 159) — Cited in 36 Judgments | BharatTax