CIT v. Priya Village Roadshows Ltd.

332 ITR 594High Court2011#2230 most cited

What is CIT v. Priya Village Roadshows Ltd. authority for?

Expenditure incurred for starting a new business is capital in nature, irrespective of whether the project materializes. The essential purpose for which an expenditure is incurred determines its character as capital or revenue under Section 37(1).

52

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2012 to 2026.

Also referred to as

CIT v. Priya Village Roadshows Ltd. · Section 37(1) · capital expenditure · revenue expenditure · new business expenditure · allowability of expenditure · preliminary expenses · essential purpose of expenditure

Also reported as

185 Taxmann 44

Sections most often in play

Section 115JBSection 37(1)Section 14ASection 10BSection 10CSection 250Section 35(2AB)Section 40A(2)(a)

Issues it is cited on

section 2(42c)section 2(19aa)section 8d(2)(ii)section 92f(ii)section 92asection 8dsection 50bready for usepreliminary expensessection 40a(2)(a)section 39section 14a(1)

Judgments citing CIT v. Priya Village Roadshows Ltd.

M/S Caparo Maruti Ltd., New Delhi vs. DCIT (Ltu), New Delhi

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

ITA 2668/DEL/2016[2011-12]Status: DisposedITAT Delhi25 Feb 2019AY 2011-12

Bench: Sh. R.K Panda & Ms. Suchitra Kambleassessment Year: 2011-12

…ing Officer or the CIT (A). The grievance of the revenue is that the payment is of enduring nature and therefore, has to be capitalized. Referring to the decision of the Hon’ble Delhi High Court in the case of CIT Vs. Priya Village Road Shows Ltd. reported in 332 ITR 594, he submitted that under identical circumstances the Hon’ble Delhi High Court has held that if expenditure is incurred for preparation of feasibility report of a 4 new project, is in respect of same business which is already carried on by assesee, even if it is for expansion of business, namely, to start a new unit which is same as earlier busine…

M/S. Zambad Mount View Project Pvt. Ltd., Aurangabad vs. Income-Tax Officer

In the result, the appeal of assessee is allowed

ITA 1856/PUN/2016[2012-13]Status: DisposedITAT Pune14 Jan 2019AY 2012-13

Bench: Shri R.S. Syal & Shri Vikas Awasthy, Jm

For Appellant: Shri J.P. BairagraFor Respondent: Shri Pankaj Garg
Section 143(2)

…आयकर अपील"य अ"धकरण “बी” "यायपीठ पुणे म" । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI VIKAS AWASTHY, JM आयकर अपील सं. / ITA No.1856/PUN/2016 "नधा"रण वष"/ Assessment Year : 2012-13 M/s. Zambad Mount View Project Pvt. Ltd., Plot No. 2 & 3, N-2, Mukundwadi, Cidco, Jalna Road, Aurangabad PAN : AAACZ4417D .......अपीलाथ" / Appellant .......अपीलाथ" / Appellant बनाम/ V/s. The Income Tax Officer, Ward – 3(1), Aurangabad ……""यथ"/ Respondent Assessee by : Shri J.P. Bairagra Revenue by : Shri Pankaj Garg सुनवाई क" तार"ख/ Date of Hearing : 30-10-2018 घोषणा क" ता…

Gautam Hiralal Gandhi, Mumbai vs. JCIT 21(1), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 242/MUM/2016[2009-10]Status: DisposedITAT Mumbai03 Aug 2018AY 2009-10

Bench: Shri R.C. Sharma, Hon'Ble & Shri C.N. Prasad, Hon'Bleshri Gautam Hiralal Gandhi V. Jcit – 21(1) 104, Turf Estate, Shakti Mill Lane, Piramal Chambers, Off E. Moses Road, Mahalakshmi, Lalbaug Mumbai – 400 011 Mumbai – 400 012 Pan: Aabpg 7684 F (Appellant) (Respondent) Assessee By : Shri Rajnikant V. Chaniyari Department By : Shri V. Vidhyadhar

For Appellant: Shri Rajnikant V. ChaniyariFor Respondent: Shri V. Vidhyadhar
Section 145ASection 234BSection 250Section 271

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “G”, MUMBAI BEFORE SHRI R.C. SHARMA, HON'BLE ACCOUNTANT MEMBER AND SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER Shri Gautam Hiralal Gandhi v. JCIT – 21(1) 104, Turf Estate, Shakti Mill Lane, Piramal Chambers, Off E. Moses Road, Mahalakshmi, Lalbaug Mumbai – 400 011 Mumbai – 400 012 PAN: AABPG 7684 F (Appellant) (Respondent) Assessee by : Shri Rajnikant V. Chaniyari Department by : Shri V. Vidhyadhar Date of Hearing : 28.05.2018 Date of Pronouncement : 03.08.2018 O R D E R PER C.N. PRASAD (JM) 1. This appeal is filed by the assessee against the order of the Learned…

M/S. Bg Exploration & Production India Ltd., Mumbai vs. JCIT (International Taxation), Dehradun

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

ITA 1478/DEL/2017[2011-12]Status: DisposedITAT Delhi18 Jul 2018AY 2011-12

Bench: Shri R. K. Panda & Ms. Suchitra Kambleassessment Year : 2011-12 Bg Exploration & Production India Jcit (International Taxation), Ltd., Dehradun. Lake Boulevard Road, Vs. Hiranandani Business Park, Powai, Mumbai.

For Appellant: Shri Ajay Vohra, Sr.Adv
Section 143(3)Section 144C(5)Section 153Section 153(4)Section 92C

…d on the following decisions :- (i) CIT vs. Vardhman Spinning and General Mills, 176 Taxm 157 (P&H). (ii) Indo Rama Synthetics Ltd., 333 ITR 18 (Del.). (iii) Jay Engineering Works Ltd., [2008] 166 taxman 115 (Del.). (iv) CIT vs. Priya Village Roadshows Ltd., 332 ITR 594 (Del.). (v) CIT vs. Euro India Ltd., [2014] 223 Taxman 97 (Del.). (vi) Hindustan Aluminium Corporation Ltd. vs. CIT, 159 ITR 673 (Cal.). (vii) Asiatic Oxygen Ltd. vs. CIT (Cal.). (viii) CIT vs. Graphite India Ltd., 221 ITR 420 (Cal.). (ix) Binani Cement Ltd. vs. CIT, 227 CTR 49 (Cal.). (x) DCIT vs. Gujarat Narmada Valley Fertilizers Co. Ltd., 57…

M/S. Keihin Panalfa Ltd., Gurgaon vs. ACIT, New Delhi

In the result the appeal of the Department stands partly

ITA 1790/DEL/2014[2009-10]Status: DisposedITAT Delhi19 Jun 2018AY 2009-10

Bench: Shri R.K. Panda & Shri Sudhanshu Srivastava

For Appellant: Shri R.K. Kapoor, CAFor Respondent: Shri Sanjay I. Bara, CIT DR, Smt. Namita Panday, Sr. DR
Section 40A(2)(b)

…expenditure incurred on such projects cannot be treated as capital expenditure but allowable as revenue expenditure. Further reliance was placed on the judgment of the Hon’ble High Court in the case of CIT v. Priya Village Roadshows Ltd. reported in (2011) 332 ITR 594 (Delhi) in this regard. It was submitted that the loss incurred by the assessee by the way of short insurance claim received or by reinstatement of foreign exchange payable has arisen in the normal course of operations, the impact of forex loss on machinery is wholly & exclusively for the purposes of assessee’s bona fide business operations and…

ACIT, New Delhi vs. M/S. Keihin Panalfa Limited, New Delhi

In the result the appeal of the Department stands partly

ITA 1201/DEL/2014[2009-10]Status: DisposedITAT Delhi19 Jun 2018AY 2009-10

Bench: Shri R.K. Panda & Shri Sudhanshu Srivastava

For Appellant: Shri R.K. Kapoor, CAFor Respondent: Shri Sanjay I. Bara, CIT DR, Smt. Namita Panday, Sr. DR
Section 40A(2)(b)

…expenditure incurred on such projects cannot be treated as capital expenditure but allowable as revenue expenditure. Further reliance was placed on the judgment of the Hon’ble High Court in the case of CIT v. Priya Village Roadshows Ltd. reported in (2011) 332 ITR 594 (Delhi) in this regard. It was submitted that the loss incurred by the assessee by the way of short insurance claim received or by reinstatement of foreign exchange payable has arisen in the normal course of operations, the impact of forex loss on machinery is wholly & exclusively for the purposes of assessee’s bona fide business operations and…

DDIT, Dehradun vs. Bg Exploration & Production India Ltd., Mumbai

In the result ground No. 2 of the appeal of the assessee is dismissed

ITA 2227/DEL/2014[2009-10]Status: DisposedITAT Delhi26 Apr 2017AY 2009-10

Bench: Shri I. C. Sudhir & Shri Prashant Maharishidy. Director Of Income Tax, Bg Exploration & Production India International Taxation, Ltd, Dehradun Bg House, Vs. Lake Boulevard Road, Hiranandani Business Park, Powai, Mumbai Pan: Aaace4569K (Appellant) (Respondent)

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. NC Swain, CIT DR
Section 143(3)Section 144CSection 92

…DIT V B G Exploration & Production India Limited ITA no 2227/Del/2014 & CO 13/Del/2015 A Y 2009-10 i) CIT vs. Vardhman Spinning and General Mills : 176 Taxman 157 (P&H) ii) Indo Rama Synthetics Ltd.: 333 ITR 18 (Del.) iii) CIT v. Priya Village Roadshows Ltd.: 332 ITR 594 (Del.) iv) CIT v. Euro India Ltd.: [2014] 223 Taxman 97 (Del.) v) Hindustan Aluminium Corporation Ltd. vs. CIT: 159 ITR 673 (Cal.) vi) Asiatic Oxygen Ltd. vs. CIT (Cal.) vii) CIT vs. Graphite India Ltd.: 221 ITR 420 (Cal.) viii) Binani Cement Ltd. v. CIT: 277 CTR 49 (Cal.) ix) DCIT v. Gujarat Narmada Valley Fertilizers Co. Ltd.: 57 taxmann.com (G…

Century Textiles and Industries Ltd, Mumbai vs. ACIT RG 6(2), Mumbai

ITA 3948/MUM/2009[2005-06]Status: DisposedITAT Mumbai05 Aug 2016AY 2005-06

Bench: Shri G.S.Pannu & Shri Pawan Singhassessment Year : 2005-06 Century Textile & Industries Dcit Limited , Century Bhawan, Worli Circle 6(2), Aaykar Bhawan Vs. Mumbai.-40 Mumbai Pan: Aaacc2659Q (Appellant) (Respondent) Assessee By : Sh. Y.P. Trivedi Sh. S.S.Aggarwal(Ar)

For Appellant: Sh. Y.P. TrivediFor Respondent: Sh. Amit Kumar Singh (DR)
Section 10Section 10B

…Pulp and Paper production and it should be appreciated that the expenses were incurred for improvement of the quality of the existing product not for new product. Reliance has been placed on the following judgment:- (1). CIT Vs. Priya Village Road Shows Ltd (332 ITR 594) Delhi High Court. (2). Indo Rama Synthetic (I) Ltd Vs CIT 333 ITR 18 (Del) (3) CIT Vs Tata Robins Fraser Ltd 253 ITR 227 (Jhar) Ld DR for the revenue has relied on the orders of the lower authorities. 12. We have carefully considered the rival submissions of the parties. In the present case, the assessee has incurred an expenses of Rs.31,01,677/…

M/S. Dcm Shriram Industries Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 883/DEL/2014[2010-11]Status: DisposedITAT Delhi10 Jun 2016AY 2010-11

Bench: Smt Diva Singh & Sh.L.P.Sahu

Section 14A

…ich are found reproduced in page 6 & 7 of the impugned order submitted that thought the two judgements relied upon by the assessee namely (i) Indo Rama Synthetics India Ltd. v CIT [2011] 333 ITR 18 (Del.) and (ii) CIT vs Priya Village Roadshows Ltd. [2011] 332 ITR 594 (Del.) were cited, the CIT(A) while coming to a conclusion has failed to consider these. Carrying us through the Page 2 of 7 I.T.A .No.-883/Del/2014 decision relied upon it was his submission that the grounds deserve to be allowed. In the alternate it was his prayer that the issue may be remanded. The Ld. Sr. DR on the other hand relied upon…

Ushdev International Ltd, Mumbai vs. Addl CIT RG 2(3), Mumbai

In the result, the appeal filed by the Revenue stands

ITA 3294/MUM/2013[2009-10]Status: DisposedITAT Mumbai31 May 2016AY 2009-10

Bench: Sri Jason P. Boaz, Am & Sri Sandeep Gosain, Jm The Dy. Commissioner Of Income Vs. M/S. Ushdev International Tax, Range-2 (3), R. No.552, 5Th 6Th Ltd., Floor, New Floor, Aayakar Bhavan, M. K. Harileela House, Mint Road, Mumbai 400 020 Road, Mumbai 400 001 Pan: Aaacu 1672 R Appellant .. Respondent M/S. Ushdev International Vs. The Dy. Commissioner Of 6Th Ltd., Floor, New Income Tax, Range-2 (3), R. No.552, 5Th Floor, Aayakar Harileela House, Mint Road, Mumbai 400 001 Bhavan, M. K. Road, Mumbai 400 020 Pan: Aaacu 1672 R Appellant .. Respondent

Section 143(1)Section 143(3)Section 145Section 80I

…dorama Synthetics India Ltd. Vs. CIT (2011) (333 ITR 18) (Del) and (ii) CIT Vs Essar Oil Ltd. (2008) TIOL 530 HC – Bom. Apart from that, the learned AR further relied upon the judgments rendered in the case of (i) CIT Vs. Priya Village Road Shows Ltd. (2011) 332 ITR 594 (Delhi) (High Court and Apollo Trading & Finance Pvt. Ltd. Vs. DCIT 2008 TIOL 379 – Del. 16. On the other hand, the learned DR relied upon the orders of the Revenue authorities. 17. Before we come to the merits of the case it is necessary to analyze the order passed by the learned CIT (A). While dealing with the aforementioned grounds, the f…

Raychem Rpg P. Ltd, Mumbai vs. Addl CIT RG 7(2), Mumbai

The appeal of the assessee is allowed for statistical purposes

ITA 4641/MUM/2013[2006-07]Status: DisposedITAT Mumbai01 Jan 2016AY 2006-07

Bench: Shri Joginder Singh & Shri D. Karunakar Raoassessment Year: 2006-07 M/S Raychem Rpg Pvt. Additional Commissioner Of Ltd. Income Tax, बनाम/ Rpg House, 463, Range-7(2), Vs. Dr. Annie Beasant Road, 6Th Floor, Worli, Mumbai-400030 Aayakar Bhavan, M.K.Road, Mumbai-400020 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No.Aaacr8032L

Section 143(3)Section 145A

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ, ‘डी’,मुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, ‘D’ MUMBAI "ी जो"ग"दर "संह, "या"यक सद"य एवं "ी डी. क"णाकर राव, लेखा सद"य, के सम" Before Shri Joginder Singh, Judicial Member, and Shri D. Karunakar Rao, Accountant Member Assessment Year: 2006-07 M/s Raychem RPG Pvt. Additional Commissioner of Ltd. Income Tax, बनाम/ RPG House, 463, Range-7(2), Vs. Dr. Annie Beasant Road, 6th Floor, Worli, Mumbai-400030 Aayakar Bhavan, M.K.Road, Mumbai-400020 ("नधा"रती /Assessee) (राज"व /Revenue) PAN. No.AAACR8032L "नधा"रती क" ओर से / Assessee by Shri Manish Shah & Shri Chintan…

CIT vs. Hindustan Times Ltd

Appeal is partly allowed, to the extent it covers the first two questions;

ITA - 95 / 2011HC Delhi14 Sept 2012

…itted that so far as the expenditure towards payment of fee for conducting market research and survey is concerned, the 2012:DHC:5739-DB ITA-95 & 100/2011 Page 10 issue stands covered by the ruling of this Court in CIT v. Priya Village Roadshows Ltd. 332 ITR 594 and the judgment of the Punjab and Haryana High Court in CIT v. Vardhman Spinning and General Mills 176 Taxman 157 and judgments of the Gauhati High Court and the Andhra Pradesh High Courts. These amounts are clearly deductible as the feasibility study conducted by the assessee was for the same and existing business. 11. On the question of…