CIT v. Samsung India Electronics Ltd.

356 ITR 354High Court2013#3839 most cited

What is CIT v. Samsung India Electronics Ltd. authority for?

Expenditure incurred before commencement of business is deductible if the business has been set up, meaning the assessee is ready to commence operations, even if no commercial activity has begun.

31

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2014 to 2024.

Also referred to as

CIT v. Samsung India Electronics Ltd. · business setup · commencement of business · readiness to commence operations · revenue expenditure · pre-commencement expenses · eligibility for deduction

Also reported as

37 Taxmann.com 239
Read the full judgment

Issues it is cited on

section 2(11)section 10(2)section 57(iii)section 57revenue expendituresection 44absection 10income from other sourcesprevious yearsalaryassistant commissionerindia

Judgments citing CIT v. Samsung India Electronics Ltd.

Lodhi Property Company Ltd., Gurgaon vs. DCIT, New Delhi

In the result, appeal of the assessee is allowed and the appeal of the revenue is dismissed

ITA 4851/DEL/2011[2007-08]Status: DisposedITAT Delhi26 Feb 2018AY 2007-08

Bench: Shri G.D. Agrawal, Hon’Ble & Shri K.Narasimha Charylodhi Property Company Ltd. Vs Dcit C/O Authorized Representative Sr Circle 4(1) Batliboi & Co., Golf View New Delhi. Corporate Tower-B, Sector 42, Sector Road, Gurgaon. Aabch0299N & Dcit Vs Lodhi Property Company Ltd. Circle 4(1) C/O Authorized Representative Sr Batliboi & New Delhi. Co., Golf View Corporate Tower-B, Sector 42, Sector Road, Gurgaon. Aabch0299N Assessee By Sh. R.S. Singhvi, Ca Sh. Satyajeet Goel, Ca Revenue By Sh. Ravi Kant Gupta, Sr. Dr

Section 35Section 36Section 37(1)

…October 2002, as such it cannot be said that the business of the assessee was not set up. He placed reliance on the decisions reported in CIT vs Dhumketu Builders & Development Pvt. Ltd. [2014] 368 ITR 680 (Del.); CIT vs Samsung India Electronics Ltd. [2013] 356 ITR 354 (Del.); Carefour WC & C India P. Ltd. vs DCIT [2014] 368 ITR 692 (Del.); CIT vs ESPN Software India Pvt. Ltd. [2009] 184 taxmann 452 (Del.); CIT vs Arcane Developers (P.) Ltd. [2014] 42 taxmann.com 10 (Del.); and M/s Multi Act Realty Enterprises Pvt. Ltd. vs ITO [ITA No.7274/Mum/2011] (Mumbai Tribunal) in support of his contention that the busine…

Niit Online Learning Ltd vs. ACIT, Circle-13(1)

The appeal of the assessee stands allowed for statistical purposes

ITA 647/DEL/2005[2001-2002]Status: DisposedITAT Delhi20 Nov 2017AY 2001-2002

Bench: Shri R.K. Panda & Shri Sudhanshu Srivastavaay: 2001-02 M/S Niit Online Learning Ltd., Vs Asstt.Commissioner Of Income Tax, B-234, Okhla Industrial Area, Circle 13(1), Phase-1, New Delhi. New Delhi-110020 (Pan: Aabcn1113B) (Appellant) (Respondent) Appellant By : Shri Ajay Vohra, Sr. Adv. Shri Gaurav Jain, Adv. Respondent By : Shri R.C. Danday, Sr. Dr

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri R.C. Danday, Sr. DR
Section 143(3)

…/2005 Assessment Year 2001-02 numerous judgments on the proposition that expenditure incurred between the set up of business and earning of revenue are allowable. The Hon’ble Delhi High Court has also held so in CIT vs. Samsung Electronics Ltd. reported in 356 ITR 354 (Del). Similarly, there are also numerous decisions wherein it has been held that advertisement expenditure for promotion of a product is not capital in nature and noticeable amongst them is the judgment of the Hon’ble Delhi High Court in the case of CIT vs. Spice Distribution Ltd reported in 374 ITR 30 (Del). Further, it is also a settled jud…

Nischay Fab Pvt. Ltd., Ahmedabad vs. The ACIT, Circle-5, Ahmedabad

The appeal is partly allowed

ITA 463/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad15 Nov 2017AY 2011-12

Bench: Shri N.K. Billaiya & Shri S. S. Godara)

For Appellant: Shri J.P. Shah, AdvocateFor Respondent: Shri Umashankar Prasad, Sr. D.R

…IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI S. S. GODARA, JUDICIAL MEMBER) ITA. No: 463/AHD/2015 (Assessment Year: 2011-12) Nischay Fab Pvt. Ltd. 8, V/S Asst. Commissioner of Lavanya Society, Nr. Income Tax, Circle-5, Jaltarang Club, Vasna, Ahmedabad-380015 Ahmedabad-380007 (Appellant) (Respondent) PAN: AABCN4115F Appellant by : Shri J.P. Shah, Advocate Respondent by : Shri Umashankar Prasad, Sr. D.R. (आदेश)/ORDER Date of hearing : 02 -11-2017 Date of Pronouncement : 14 -11-2017 PER N.K. BILLAIYA, ACCOUNTANT MEMBER 1. This appea…

Pr. Commissioner of Income Tax-2 vs. Chl, Limited

ITA/693/2017HC Delhi21 Aug 2017

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH

Section 14A

…* IN THE HIGH COURT OF DELHI AT NEW DELHI 32&39 + ITA No. 638/2017 PR.COMMISSIONER OF INCOME TAX-2 Appellant Through: Mr. Zoheb Hossain, Senior Standing Counsel versus CHL LIMITED Through: None Respondent + ITA No. 693/2017 PR. COMMISSIONER OF INCOME TAX-2 Appellant Through: Mr Zoheb Hossain, Senior Standing Counsel versus CHL LIMITED Through: None CORAM: JUSTICE S. MURALIDHAR JUSTICE PRATHIBA M. SINGH % ORDER 21.08.2017 Respondent 1. These appeals are directed by the Revenue against the common order dated 17'*' February 2017 passed by the Income Tax Appellate Tribunal ITA Nos. 638/2017 & 693/2017 Page 1 of3 Digi…

ACIT, New Delhi vs. M/S. Geo Connect Ltd., New Delhi

In the result, appeals filed by the assessee in ITA Nos

ITA 5851/DEL/2011[2002-03]Status: DisposedITAT Delhi17 Jan 2017AY 2002-03

Bench: Sh. H.S. Sidhu & Sh. O.P. Kant

Section 143(2)Section 143(3)Section 195Section 271(1)(c)Section 9(1)(vii)

…in the immediately preceding year, which also established that the business was setup in the immediately preceding year. In this connection, he relied on the decision of the Hon’ble Delhi High Court in the case of CIT Vs. Samsung Electronics Ltd., reported in 356 ITR 354. The learned counsel also referred to the decision of the ITA Nos.2088/Del/2008 & 5851/Del/2011 AYs: 2002-03 & 2003-04 Delhi High Court in the case of Omniglobe Information Tech India Ltd. Vs. CIT in ITA No. 257/2012, wherein it is held that in case of BPO business, the moment employees recruited & enrolled and infrastructure to use their service…

M/S Geo Connect Ltd., New Delhi vs. DCIT, New Delhi

In the result, appeals filed by the assessee in ITA Nos

ITA 127/DEL/2011[2003-04]Status: DisposedITAT Delhi17 Jan 2017AY 2003-04

Bench: Sh. H.S. Sidhu & Sh. O.P. Kant

Section 143(2)Section 143(3)Section 195Section 271(1)(c)Section 9(1)(vii)

…in the immediately preceding year, which also established that the business was setup in the immediately preceding year. In this connection, he relied on the decision of the Hon’ble Delhi High Court in the case of CIT Vs. Samsung Electronics Ltd., reported in 356 ITR 354. The learned counsel also referred to the decision of the ITA Nos.2088/Del/2008 & 5851/Del/2011 AYs: 2002-03 & 2003-04 Delhi High Court in the case of Omniglobe Information Tech India Ltd. Vs. CIT in ITA No. 257/2012, wherein it is held that in case of BPO business, the moment employees recruited & enrolled and infrastructure to use their service…

DCIT Circle-12 (1) vs. Geo Connect Ltd

In the result, appeals filed by the assessee in ITA Nos

ITA 2088/DEL/2008[2002-2003]Status: DisposedITAT Delhi17 Jan 2017AY 2002-2003

Bench: Sh. H.S. Sidhu & Sh. O.P. Kant

Section 143(2)Section 143(3)Section 195Section 271(1)(c)Section 9(1)(vii)

…in the immediately preceding year, which also established that the business was setup in the immediately preceding year. In this connection, he relied on the decision of the Hon’ble Delhi High Court in the case of CIT Vs. Samsung Electronics Ltd., reported in 356 ITR 354. The learned counsel also referred to the decision of the ITA Nos.2088/Del/2008 & 5851/Del/2011 AYs: 2002-03 & 2003-04 Delhi High Court in the case of Omniglobe Information Tech India Ltd. Vs. CIT in ITA No. 257/2012, wherein it is held that in case of BPO business, the moment employees recruited & enrolled and infrastructure to use their service…

Geo Convest Ltd vs. DCIT Circle-12 (1)

In the result, appeals filed by the assessee in ITA Nos

ITA 1927/DEL/2008[2002-2003]Status: DisposedITAT Delhi17 Jan 2017AY 2002-2003

Bench: Sh. H.S. Sidhu & Sh. O.P. Kant

Section 143(2)Section 143(3)Section 195Section 271(1)(c)Section 9(1)(vii)

…in the immediately preceding year, which also established that the business was setup in the immediately preceding year. In this connection, he relied on the decision of the Hon’ble Delhi High Court in the case of CIT Vs. Samsung Electronics Ltd., reported in 356 ITR 354. The learned counsel also referred to the decision of the ITA Nos.2088/Del/2008 & 5851/Del/2011 AYs: 2002-03 & 2003-04 Delhi High Court in the case of Omniglobe Information Tech India Ltd. Vs. CIT in ITA No. 257/2012, wherein it is held that in case of BPO business, the moment employees recruited & enrolled and infrastructure to use their service…

DCIT, New Delhi vs. M/S Field Fresh Foods Pvt. Ltd., New Delhi

In the result, the Revenue’s appeal is dismissed

ITA 5917/DEL/2010[2005-06]Status: DisposedITAT Delhi08 Aug 2016AY 2005-06

Bench: Shri R.S. Syal & Smt. Beena A. Pillaiassessment Year : 2005-06

For Appellant: Shri Anil Bhalla, CAFor Respondent: Shri Anil Kumar Sharma, Sr. DR
Section 3Section 4

…commencement of business. The Tribunal held that the business was set up on 15.08.95 on the date of acquiring of licence from 5 its parent company. The Hon’ble High Court upheld the view taken by the Tribunal. In CIT vs. Samsung India Electronics Ltd. (2013) 356 ITR 354 (Del), it has been held by the Hon’ble Delhi High Court that a business is set up when it is established and is ready to commence business. 7. Adverting to the facts of the instant case, it is found that the assessee has been incorporated with the main objects of carrying on of the business of fruits and vegetables and other agricultural prod…

Commissioner of Income Tax-5 vs. Jcdecaux Advertising India (P) Ltd

ITA/241/2015HC Delhi23 Apr 2015

…that in quoting that as it did, the ITAT relied upon the two judgments of this Court - Commissioner of Income Tax v. ESPN Software India Pvt. Ltd. (2009) 184 Taxman 452 (Del); and second, Commissioner of Income Tax v. Samsung India Electronics Ltd. (2013) 356 ITR 354 (Del). The latter of these decisions was relied upon in a subsequent ruling in ITA No. 42/2014 Carefour WC&C India Private Limited v. Deputy Commissioner of Income Tax, 2014 ITR 392. 8. The Court in Carefour crucially observed that activity or exercise which is a perquisite to the commencement or proposed set up would be treated as that…

Carefour Wc&C India Private Limited vs. Deputy Commissioner of Income Tax

ITA/42/2014HC Delhi22 Sept 2014
Section 260ASection 28Section 43D

…Builders & Development Pvt. Ltd., 216 TAXMAN 76 2014:DHC:4885-DB ITA No. 42/2014 Page 11 of 23 (xii) CIT Vs. Samsung India Electronics Limited, 356 ITR 354 (xiii) CIT Vs. Franco Tosi Ingegnaria, 241 ITR 268 (xiv) CIT Vs. Western India Seafood (P) Ltd., 199 ITR 777 (xv) CIT Vs. Saurashtra Cement & Chemicals Industries Ltd., 91 ITR 170 8. On the other hand, Mr. Rohit Madan would support the judgment of the Tribunal and contends that this Court would not like to interfere with the conclusio…