CIT v. Raychem RPG Ltd.

DCIT RG. - 6(3), Mumbai vs. M/S. Kansai Nerolac Paints Ltd., Mumbai

Accordingly we see no infirmity in the decision of CIT(A) and uphold the decision of the CIT(A). This ground of the revenue is dismissed

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

…ted I.T.A. No.3384&3385/Mum/2014 I.T.A. No.3642/Mum/2016 and I.T.A. No.4562&4607/Mum/2017 the sum of Rs. 31,18,422 i.e. Sl.no.2,3, & 5 to 7 has been incurred on licences which are periodically renewable and allowable as revenue expense. Reliance is placed on 346 ITR 138, Raychem RPG Ltd. (Bom);[2022] 284 Taxman 475 (Mad) CIT v Danfoss P. Ltd. The ld AR also submitted that a similar expenditure in assessee's own case has been allowed by the coordinate bench of the Tribunal for AY 2007-08. 7. The ld DR relied on the order of the lower authorities 8. We heard the parties and perused the material on record. We noti…

M/S. Kansai Nerolac Paints Ltd., Mumbai vs. DCIT RG. - 6(3), Mumbai

Accordingly we see no infirmity in the decision of CIT(A) and uphold the decision of the CIT(A). This ground of the revenue is dismissed

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

…ted I.T.A. No.3384&3385/Mum/2014 I.T.A. No.3642/Mum/2016 and I.T.A. No.4562&4607/Mum/2017 the sum of Rs. 31,18,422 i.e. Sl.no.2,3, & 5 to 7 has been incurred on licences which are periodically renewable and allowable as revenue expense. Reliance is placed on 346 ITR 138, Raychem RPG Ltd. (Bom);[2022] 284 Taxman 475 (Mad) CIT v Danfoss P. Ltd. The ld AR also submitted that a similar expenditure in assessee's own case has been allowed by the coordinate bench of the Tribunal for AY 2007-08. 7. The ld DR relied on the order of the lower authorities 8. We heard the parties and perused the material on record. We noti…

Kansai Nerolac Paints Ltd, Mumbai vs. DCIT RG 6(2), Mumbai

Accordingly we see no infirmity in the decision of CIT(A) and uphold the decision of the CIT(A). This ground of the revenue is dismissed

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

…ted I.T.A. No.3384&3385/Mum/2014 I.T.A. No.3642/Mum/2016 and I.T.A. No.4562&4607/Mum/2017 the sum of Rs. 31,18,422 i.e. Sl.no.2,3, & 5 to 7 has been incurred on licences which are periodically renewable and allowable as revenue expense. Reliance is placed on 346 ITR 138, Raychem RPG Ltd. (Bom);[2022] 284 Taxman 475 (Mad) CIT v Danfoss P. Ltd. The ld AR also submitted that a similar expenditure in assessee's own case has been allowed by the coordinate bench of the Tribunal for AY 2007-08. 7. The ld DR relied on the order of the lower authorities 8. We heard the parties and perused the material on record. We noti…

Kansai Nerolac Paints Limited (Erstwhile Known As Goodlass Nerolac Paints Limited), Mumbai vs. Addl. CIT, Range 6 (2), Mumbai

Accordingly we see no infirmity in the decision of CIT(A) and uphold the decision of the CIT(A). This ground of the revenue is dismissed

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

…ted I.T.A. No.3384&3385/Mum/2014 I.T.A. No.3642/Mum/2016 and I.T.A. No.4562&4607/Mum/2017 the sum of Rs. 31,18,422 i.e. Sl.no.2,3, & 5 to 7 has been incurred on licences which are periodically renewable and allowable as revenue expense. Reliance is placed on 346 ITR 138, Raychem RPG Ltd. (Bom);[2022] 284 Taxman 475 (Mad) CIT v Danfoss P. Ltd. The ld AR also submitted that a similar expenditure in assessee's own case has been allowed by the coordinate bench of the Tribunal for AY 2007-08. 7. The ld DR relied on the order of the lower authorities 8. We heard the parties and perused the material on record. We noti…

Kansai Nerolac Paints Limited (Erstwhile Known As Goodlass Nerolac Paints Limited), Mumbai vs. Addl CIT, Range 6 (2), Mumbai

Accordingly we see no infirmity in the decision of CIT(A) and uphold the decision of the CIT(A). This ground of the revenue is dismissed

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

…ted I.T.A. No.3384&3385/Mum/2014 I.T.A. No.3642/Mum/2016 and I.T.A. No.4562&4607/Mum/2017 the sum of Rs. 31,18,422 i.e. Sl.no.2,3, & 5 to 7 has been incurred on licences which are periodically renewable and allowable as revenue expense. Reliance is placed on 346 ITR 138, Raychem RPG Ltd. (Bom);[2022] 284 Taxman 475 (Mad) CIT v Danfoss P. Ltd. The ld AR also submitted that a similar expenditure in assessee's own case has been allowed by the coordinate bench of the Tribunal for AY 2007-08. 7. The ld DR relied on the order of the lower authorities 8. We heard the parties and perused the material on record. We noti…

DCIT Cir 6(3), Mumbai vs. M/S. Grasim Industries Ltd., Mumbai

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

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

…The relevant findings of the coordinate bench, in the aforesaid decision, are as under:– ―99. Considered the submissions and material placed on record, we observe that this issue is dealt by the Hon'ble Jurisdictional High Court in the case Raychem RPG Ltd. [346 ITR 138 (Bom. HC)] and held as under: - ―1. Two questions of law raised by the Revenue in this appeal, which reads thus: "(a) Whether on the facts and circumstance of the case and in law, the Hon'ble ITAT was justified in deleting the additions in respect of disallowance of software expenditure to the extent of Rs.23,62,368/- as capital expenditure as so…

Grasim Industries Ltd., Mumbai vs. DCIT Range 6(3), Mumbai

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

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

…The relevant findings of the coordinate bench, in the aforesaid decision, are as under:– ―99. Considered the submissions and material placed on record, we observe that this issue is dealt by the Hon'ble Jurisdictional High Court in the case Raychem RPG Ltd. [346 ITR 138 (Bom. HC)] and held as under: - ―1. Two questions of law raised by the Revenue in this appeal, which reads thus: "(a) Whether on the facts and circumstance of the case and in law, the Hon'ble ITAT was justified in deleting the additions in respect of disallowance of software expenditure to the extent of Rs.23,62,368/- as capital expenditure as so…

Deputy Commissioner of Income Tax 12(2)(2), Mumbai vs. Group M Media (India) Private Limited, Mumbai

Bench: Shri Br Baskaran & Shri Kuldip Singhassessment Year: 2014-15

…Moreover, the Hon’ble Delhi High Court in the case of CIT vs ITA No.3088/M/2019 & CO No.138/M/2021 8 M/s. Group M Media India Pvt. Ltd. Asahi India Safety Glass Ltd, 346 ITR 329 and Hon’ble Bombay High Court in the case of CIT vs Raychem RPG Ltd, reported in 346 ITR 138 (Bom) have held that, these softwares do not form part of the profit making apparatus and merely facilitate the assessee’s trading operation or enabled the management to conduct the assessee’s business more efficiently and more profitable. Thus, they have to be treated as revenue expenditure. Moreover, as pointed out by the Ld. Counsel in the ear…

Novartis India Ltd, Mumbai vs. Addl CIT RG 7(1), Mumbai

In the result, appeal filed by the assessee is partly allowed as stated above

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blem/S. Novartis India Limited Addl. Cit, Range 7(1) V. Aayakar Bhavan, M.K. Road Sandoz House, Dr. Annie Besant Road Worli, Mumbai - 400018 Mumbai Pan: Aaach2914F Appellant Respondent Assessee Represented By : Shri Rajan Vora & Shri Pranay Gandhi Revenue Represented By : Shri Rajneesh Yadav

…IN THE INCOME TAX APPELLATE TRIBUNAL “J” BENCH, MUMBAI BEFORE SHRI AMIT SHUKLA, HON'BLE JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, HON'BLE ACCOUNTANT MEMBER M/s. Novartis India Limited Addl. CIT, Range 7(1) v. Aayakar Bhavan, M.K. Road Sandoz House, Dr. Annie Besant Road Worli, Mumbai - 400018 Mumbai PAN: AAACH2914F Appellant Respondent Assessee Represented by : Shri Rajan Vora & Shri Pranay Gandhi Revenue Represented by : Shri Rajneesh Yadav Date of Hearing : 19 July 2022 Date of pronouncement : 28.09.2022 ORDER PER S. RIFAUR RAHMAN (AM) 1. This appeal is filed by the assessee against direction of the Dispute…

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

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 :

…R 339 (All) (xi). Assam Bengal Cement Co Ltd. - 27 ITR 34 (SC) (xii). Ooty Dasaprakash - 237 ITR 902 (Mad) (xiii). B and A Plantation and Industries - 242 ITR 22 (Gau) (xiv). HEDE Consultancy P Ltd. - 258 ITR 380 (Bom) Software: (xv). CIT vs. Raychem RPG Ltd. 346 ITR 138 (Bom) 12. Ld.DR relied on the orders of the Assessing Officer. 13. Considered the rival submissions and material placed on record, we observed that Hon'ble Supreme Court in the case of Madras Auto Services Pvt. Ltd., (supra) on similar issue adjudicated in favour of the assessee. While holding so Hon'ble Supreme Court held as under: - “The asse…

DCIT CC 7(3), Mumbai vs. M/S Palava Dwellers Pvt. Ltd., Mumbai

In the result, appeal filed by the learned AO is dismissed and appeal of the assessee is allowed

Bench: Shri Amit Shukla, Jm & Shri Prashant Maharishi, Am

…the order of the learned lower authorities. 021. We have carefully considered the rival contentions and perused the orders of the lower authorities. The assessee has incurred ERP expenditure and license fees for the software. Honourable Bombay High Court in 346 ITR 318 in case of CIT versus Raychem RPG Ltd covers the issue wherein it has been held as Under:- “2. As regards the first question, Tribunal relying upon its order in the assessee's own case relating to asst. yr. 2001-02 held that the software expenditure was revenue expenditure. The appeal filed by the Revenue for the asst. yr. 2001-02 has been dismi…

Lodha Developers Ltd.(Successor to Palava Dwellers Pvt. Ltd.), Mumbai vs. DCIT, CC- 7(3), Mumbai

In the result, appeal filed by the learned AO is dismissed and appeal of the assessee is allowed

Bench: Shri Amit Shukla, Jm & Shri Prashant Maharishi, Am

…the order of the learned lower authorities. 021. We have carefully considered the rival contentions and perused the orders of the lower authorities. The assessee has incurred ERP expenditure and license fees for the software. Honourable Bombay High Court in 346 ITR 318 in case of CIT versus Raychem RPG Ltd covers the issue wherein it has been held as Under:- “2. As regards the first question, Tribunal relying upon its order in the assessee's own case relating to asst. yr. 2001-02 held that the software expenditure was revenue expenditure. The appeal filed by the Revenue for the asst. yr. 2001-02 has been dismi…

Grasim Industries Ltd vs. Addl. CIT Range 6(3)

In the result, appeal filed by the assesse and revenue are partly allowed

Bench: Shri Saktijit Dey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blegrasim Industries Limited V. Addl. Cit, Range 6(3) Corporate Finance Division 5Th Floor, Room No. 505 Aditya Birla Centre “A” Wing Aayakar Bhavan 2Nd Floor, S.K. Ahire Marg, Worli Mumbai Mumbai-400025 Pan: Aaacg4464B Appellant Respondent Dy. Cit, Range 6(3), V. Grasim Industries Limited, 5Th Floor, Room No. 505, Corporate Finance Division, Aayakar Bhavan, Aditya Birla Centre, “A” Wing, Mumbai-20. 2Nd Floor, S.K. Ahire Marg Worli, Mumbai-400025 Pan: Aaacg4464B Appellant Respondent Assessee By : Shri J.D. Mistry Revenue By : Shri Sandeep Raj & Shri Vijay Kumar Menon

…se of assessee also. 98. Ld. DR vehemently supported the order of the Assessing Officer. 99. Considered the submissions and material placed on record, we observe that this issue is dealt by the Hon'ble Jurisdictional High Court in the case Raychem RPG Ltd. [346 ITR 138 (Bom. HC)] and held as under: - “1. Two questions of law raised by the Revenue in this appeal, which reads thus: "(a) Whether on the facts and circumstance of the case and in law, the Hon'ble ITAT was justified in deleting the additions in respect of disallowance of software expenditure to the extent of Rs.23,62,368/- as capital expenditure as s…

ACIT 8(1), Mumbai vs. Aventis Pharma Ltd, Mumbai

In the result, appeal is dismissed

Bench: Shri Pramod Kumar () & Shri Saktijit Dey ()

…decision of the Tribunal in assessee’s own case for assessment year 1999-2000. In addition, he relied upon the following decisions:- 1. CIT vs Asahi India Glass Ltd 346 ITR 329 (Del) 2. CIT VS Amway India Enterprise 346 ITR 341 (Del) 3. CIT vs Raychem RPG Ltd 346 ITR 138 (Bom) 26. The learned departmental representative fairly agreed that the issue is covered by the earlier decision of the Tribunal. 27. We have considered rival submissions in the light of decisions relied upon and perused materials on record. It is evident, the disallowance has been made on the reasoning that the expenditure incurred is of capit…

ACIT Cir. - 8(1), Mumbai vs. M/S. Aventis Pharma Ltd., Mumbai

In the result, appeal is dismissed

Bench: Shri Pramod Kumar () & Shri Saktijit Dey ()

…decision of the Tribunal in assessee’s own case for assessment year 1999-2000. In addition, he relied upon the following decisions:- 1. CIT vs Asahi India Glass Ltd 346 ITR 329 (Del) 2. CIT VS Amway India Enterprise 346 ITR 341 (Del) 3. CIT vs Raychem RPG Ltd 346 ITR 138 (Bom) 26. The learned departmental representative fairly agreed that the issue is covered by the earlier decision of the Tribunal. 27. We have considered rival submissions in the light of decisions relied upon and perused materials on record. It is evident, the disallowance has been made on the reasoning that the expenditure incurred is of capit…

M/S. Aventis Pharma Ltd., Mumbai vs. ACIT - 8(1), Mumbai

In the result, appeal is dismissed

Bench: Shri Pramod Kumar () & Shri Saktijit Dey ()

…decision of the Tribunal in assessee’s own case for assessment year 1999-2000. In addition, he relied upon the following decisions:- 1. CIT vs Asahi India Glass Ltd 346 ITR 329 (Del) 2. CIT VS Amway India Enterprise 346 ITR 341 (Del) 3. CIT vs Raychem RPG Ltd 346 ITR 138 (Bom) 26. The learned departmental representative fairly agreed that the issue is covered by the earlier decision of the Tribunal. 27. We have considered rival submissions in the light of decisions relied upon and perused materials on record. It is evident, the disallowance has been made on the reasoning that the expenditure incurred is of capit…