CIT v. Samtel Color Ltd.

326 ITR 425High Court2010#1817 most cited

What is CIT v. Samtel Color Ltd. authority for?

Corporate club membership fees, including admission and subscription fees, incurred wholly and exclusively for business purposes to improve business relations and prospects, are allowable as revenue expenditure. This principle applies when there is a proximate nexus between the expenditure and the business.

63

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2016 to 2026.

Also referred to as

CIT v. Samtel Color Ltd. · section 37(1) · club membership fees · corporate club membership · revenue expenditure · business expenditure · allowable deduction · wholly and exclusively for business · proximate nexus

Also reported as

184 Taxmann 12064 DTR 4613 ITR-OL 639

Sections most often in play

Section 143(3)Section 37(1)Section 139(1)Section 143(1)Section 144BSection 154Section 250Section 263
Read the full judgment

Issues it is cited on

proximate nexussection 10(35)dependent agent peservice pesection 135csr expendituresection 35(2ab)weighted deductionenduring benefitsection 10(34)transactional net margin methodsection 40(a)(i)

Judgments citing CIT v. Samtel Color Ltd.

I.T.O WD - 4(2), Kolkata vs. M/S Marcopolo Products Pvt Ltd, Kolkata

In the result, the appeal of the Revenue is dismissed and the Cross Objection of the assessee is partly allowed

ITA 1390/KOL/2013[2009-10]Status: DisposedITAT Kolkata06 May 2016AY 2009-10

Bench: Shri P. M. Jagtap, A.M. & Shri S.S.Viswanethra Ravi, J.M.)

For Appellant: Shri Sudipta Guha JCIT, Sr.DRFor Respondent: Shri Manish Tiwari
Section 143(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH ‘B’, KOLKATA (Before Shri P. M. Jagtap, A.M. & Shri S.S.Viswanethra Ravi, J.M.) ITA No. 1390/Kol/2013 : Asstt. Year : 2009-2010 ITO, Ward-4(2). Vs M/s Marcopolo Products Kolkata Private Limited PAN: ABCI2766H (APPELLANT) (RESPONDENT) CO No. 100/Kol/2013 : Asstt. Year : 2009-2010 M/s Marcopolo Products Private Vs ITO, Ward-4(2). Limited Kolkata PAN: ABCI2766H (CROSS OBJECTOR) (RESPONDENT) Appellant by : Shri Sudipta Guha JCIT, Sr.DR Respondent by : Shri Manish Tiwari Date of Hearing : 10.02.2016 Date of Pronouncement : 06-05-2016 ORDER Per Shri S.S.Viswanet…

D.C.I.T Cir - 4, Kolkata vs. M/S Asian Tea & Exports Ltd, Kolkata

In the result, the appeal of the Revenue is dismissed

ITA 1241/KOL/2013[2009-10]Status: DisposedITAT Kolkata29 Apr 2016AY 2009-10

Bench: Shri P..M.Jagtap, Am & Shri S.S.Viswanethra Ravi, Jm]

For Appellant: Shri Sanjoy Mukherjee, JCIT, Sr.DRFor Respondent: Shri S.D.Verma, Advocate & Sri Sanjeev Kadel, FCA
Section 143(2)Section 143(3)Section 37Section 37(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH ‘B’, KOLKATA [Before Shri P..M.Jagtap, AM & Shri S.S.Viswanethra Ravi, JM] ITA No. 1241/Kol/2013 : Asstt. Year : 2009-10 DCIT, Circle-4, Vs M/s. Asian Tea & Exports Ltd. Kolkata PAN : AACCA 4877C (APPELLANT) (RESPONDENT) For the Appellant : Shri Sanjoy Mukherjee, JCIT, Sr.DR For the Respondent : Shri S.D.Verma, Advocate & Sri Sanjeev Kadel, FCA Date of Hearing : 08.02.2016 Date of Pronouncement : 29.04.2016 ORDER Per Shri S.S.Viswanethra Ravi, JM This is an appeal preferred by the Revenue against the order dated 28.02.2013 passed by the CIT(Appeals)-IV, Ko…

Asst CIT 1(3), Mumbai vs. General Insurance Corporation of India, Mumbai

In the result, the appeal filed by the Revenue is dismissed

ITA 4926/MUM/2014[2010-11]Status: DisposedITAT Mumbai02 Mar 2016AY 2010-11

Bench: Shri C.N. Prasad & Shri Rajesh Kumarआयकर अपील सं/ I.Ta No.4926/Mum/2014 ("नधा"रण वष" / Assessment Year:2010-11 बनाम/ Acit 1(3), General Insurance Aayakar Bhavan, Corporation Of India, Vs. Mumbai-400 020 “Suraksha”, 170, J. Tata Road, Mumbai-400 020 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaacg 0615N (अपीलाथ" /Appellant) (""यथ" / Respondent) .. अपीलाथ" ओर से/ Appellant By: Shri H.S. Singh ""यथ" क" ओर से/Respondent By: Shri Farrokh V. Irani सुनवाई क" तार"ख / Date Of Hearing :10.02.2016 घोषणा क" तार"ख /Date Of Pronouncement :02.03.2016 आदेश / O R D E R Per C.N. Prasad, Jm: This Appeal Is Filed By The Revenue Against The Order Of The Ld. Cit(A)-2, Mumbai Dated 21.03.2014 Pertaining To Assessment Year 2010-11. 2. The Revenue Has Raised Following Grounds In Its Appeal:

For Appellant: Shri H.S. SinghFor Respondent: Shri Farrokh V. Irani
Section 115Section 115JSection 14ASection 2(43)Section 246ASection 44

…with a view to enable the assessee to improve its business relations and prospects. Therefore the payment of club fees was business expenditure not falling u/s. 40(a)(v) of the Act. 13. The Hon’ble High Court of Delhi in the case of CIT Vs Samtel Color Ltd (326 ITR 425) has held that admission fee paid to Corporate Membership was an expenditure incurred wholly and exclusively for the purposes of business and not towards capital account as it only facilitated the smooth and efficient running of a business enterprise and did not add to the profit earning apparatus 14 of a business enterprise. Similar view has be…