How many judgments cite CIT v. Secure Meters Ltd.?

76 judgments on BharatTax cite CIT v. Secure Meters Ltd. (321 ITR 611), spanning 2011 to 2026.

Which sections of the Income Tax Act does CIT v. Secure Meters Ltd. come up under?

It is most often cited in judgments turning on Section 115JB, Section 14A, Section 1961, Section 115U, Section 244A, Section 271(1)(c).

CIT v. Secure Meters Ltd.

321 ITR 611High Court2010#1497 most cited

What is CIT v. Secure Meters Ltd. authority for?

Expenditure incurred on the issuance of debentures, including convertible debentures like Compulsorily Convertible Debentures (CCDs) or Foreign Currency Convertible Bonds (FCCBs), is revenue in nature and thus deductible. This is because a debenture constitutes a loan at the time of its issue, regardless of its future convertibility into equity.

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2011 to 2026.

Also referred to as

CIT v. Secure Meters Ltd. · Secure Meters Ltd. · 321 ITR 611 · debenture issuance expenditure · convertible debentures nature · foreign currency convertible bonds · compulsorily convertible debentures · revenue expenditure deduction · loan classification · expenditure on debenture issue · India Cements Ltd. precedent

Also reported as

221 CTR 405

Sections most often in play

Section 115JB Section 14A Section 1961 Section 115U Section 244A Section 271(1)(c)Section 36(1)(vii)Section 36(1)(viia)

Issues it is cited on

section 50(1)section 80ab section 54e section 70(2)section 10(15)section 80m section 10(33)section 14a(1)section 54ec long-term capital asset section 36(1)(viii)section 111a

Judgments citing CIT v. Secure Meters Ltd.

DCIT 14(3)(1), Mumbai vs. Thyrocare Technologies Ltd, Mumbai

In the result, all the appeal of Revenue is dismissed

ITA 4343/MUM/2015[2011-12]Status: DisposedITAT Mumbai24 May 2017AY 2011-12

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am Dy. Commissioner Of Income Tax, Thyrocare Technologies Ltd. Circle 14(3)(1) D-37/1 Ttc Midc Turbhe Vs. 455 Aayakar Bhavan, M.K. Marg Mumbai – 400073 Mumbai-400020 Pan No. Aabcvt2577P Appellant .. Respondent .. Shri. Ravikiran, Dr Revenue By Assessee By .. Miss Dinkle Hariya, Ar .. Date Of Hearing 17-05-2017 Date Of Pronouncement .. 24-05-2017 O R D E R Per Mahavir Singh, Jm:

Section 143(3)Section 271Section 271(1)(c)Section 37(1)

…e appellant. In appellant’s submission's the appellant states that the expenditure incurred:' for the issuing of compulsorily convertible debentures are held to be revenue in nature-- by, Hon'ble Rajasthan High.' Court in the case of CIT vs. Secure Meter Ltd. 321 ITR 611 and CIT vs. ITC' Hotels Ltd. 344 ITR 109 by Karnataka High Court. The appellant contends where the High Courts have held that expenditure disallowed by the A.O. is revenue expenditure and allowable in nature, hence, there are two views in this issue. One issue considered by the A.O. and the other issue that the expenditure incurred is revenue exp…

DCIT, Circle-1, Kolkata vs. M/S Mcnally Bharati Engineering Co.Ltd., Kolkata

In the result the appeal by the assessee is partly allowed

ITA 532/KOL/2012[2007-2008]Status: DisposedITAT Kolkata01 Mar 2017AY 2007-2008

Bench: Hon’Ble Sri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am] I.T.A No.100/Kol/2011 Assessment Year : 2006-07

For Appellant: Shri Soumen Adak, FCAFor Respondent: Shri Vijayendra Kumar, JCIT

Section 115JSection 43B

…sue is in the nature of capital expenditure and not allowable as deduction in computing Total Income. 16. Before CIT(A) the assessee primarily placed reliance on the decision of the Hon’ble Rajasthan High Court in the case of CIT vs Secure Meters Ltd. (2010) 321 ITR 611 (Raj.) wherein it was held that debentures when issued are loans and whether it is convertible or non convertible does not militate against the nature of the debenture being in the nature of the loan and therefore expenditure incurred would be admissible as revenue expenditure. It was also brought to the notice of CIT(A) that SLP filed by the dep…

Cambridge Solutions Limited, Bangalore vs. DCIT, Bangalore

In the result, the assessee’s appeal is allowed

ITA 1469/BANG/2010[2006-07]Status: DisposedITAT Bangalore06 Feb 2017AY 2006-07

Bench: Shri. Vijay Pal Rao & Shri. S. Jayaraman

For Appellant: Shri. Chavali Narayan, CAFor Respondent: Shri. G. R. Reddy, CIT, DR-I

Section 10Section 10ASection 144C(5)

…t 'share capital' and in the absence of enduring benefit, the expenditure incurred towards bonds should be considered as revenue in nature and relied on the following case laws 1 Hon'ble High Court of Rajasthan in the case of CIT v. Secure Meters Ltd [(2008)[321 ITR 611] 2. Hon'ble SC decision in the case of Secure Meters Limited (reference CC 10548/2009) under order dated 11 August 2011 3. Hon'ble jurisdictional HC decision in the case of CIT vs. ITC -otels Limited (2011) [334 ITR 109] Other decisions relied upon: a. Hon'ble Madras HC in the case of South India Corporation (Agencies) Ltd v CIT (2006) [209 CTR 2…

Ashok Leyland Ltd., Chennai vs. DCIT, Chennai

In the result, the appeal of the Revenue in ITA

ITA 2834/CHNY/2014[1995-96]Status: DisposedITAT Chennai23 Sept 2016AY 1995-96

Bench: Shri Chandra Poojari & Shri G. Pavan Kumarआयकर अपील सं./I.T.A. Nos.2825, 2826 & 2827/Mds/2014 "नधा"रण वष" /Assessment Years : 2005-06, 2006-07 & 2007-2008. The Deputy Commissioner Of M/S. Ashok Leyland Ltd, Income Tax, Vs. No.1, Sardar Patel Road, Large Taxpayer Unit -Ii, Guindy, Chennai 600 101. Chennai 600 032. [Pan Aaaca 4651L] (Department) (Assessee )

For Appellant: Shri. Vikram Vijayaraghavan, AdvocateFor Respondent: Shri. Arun C. Bharath, IRS, CIT

Section 35D(2)Section 35D(2)(c)

…used the material on record and judicial decision cited. This issue came for consideration in following cases:- (i) CIT vs. South India Corpn. (Agencies) Ltd 290 ITR 217. (ii) CIT vs. First Leasing Co. of India Ltd 304 ITR 67. (iii) CIT vs. Secure Meters Ltd 321 ITR 611. ITA Nos.2825 to 2827, 2834 :- 23 -: to 2839/Mds/2014. In all these judgments wherein held that expenditure incurred on issue of debentures whether convertible or non convertible is allowable as Revenue expenditure. Being so, even foreign currency loan is subject to conversion into equity also, the issue expenses will be Revenue expenditure onl…

DCIT, Chennai vs. Ashok Leyland Ltd., Chennai

In the result, the appeal of the Revenue in ITA

ITA 2827/CHNY/2014[2007-08]Status: DisposedITAT Chennai23 Sept 2016AY 2007-08

For Appellant: Shri. Vikram Vijayaraghavan, AdvocateFor Respondent: Shri. Arun C. Bharath, IRS, CIT

Section 35D(2)Section 35D(2)(c)

DCIT, Chennai vs. Ashok Leyland Ltd., Chennai

In the result, the appeal of the Revenue in ITA

ITA 2825/CHNY/2014[2005-06]Status: DisposedITAT Chennai23 Sept 2016AY 2005-06

For Appellant: Shri. Vikram Vijayaraghavan, AdvocateFor Respondent: Shri. Arun C. Bharath, IRS, CIT

Section 35D(2)Section 35D(2)(c)

Hindustan Motors Limited, Kolkata vs. D.C.I.T., Circle-6, Kolkata

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

ITA 2644/KOL/2013[1999-2000]Status: DisposedITAT Kolkata21 Sept 2016AY 1999-2000

Bench: Shri M.Balaganesh & Shri S.S.Viswanethra Ravi

Section 143(2)Section 147Section 350Section 35D

…revenue expenditure. The AO disallowed the same and CIT-A allowed the same by taking into consideration the dismissal of SLP filed by the revenue against the judgement of Honourable High Court of Rajasthan in the case of CIT Vs. Secure Meters Ltd reported in 321 ITR 611 (Raj.). The Tribunal having jurisdiction affirmed the finding of the CIT-A. The Honourable High Court of Delhi was pleased to observe that the debentures may strengthen the capital base on the company by converting the same into the shares, but, however, found the expenditure incurred in the process of the issuance of debentures shall be allowed…

Mc Nally Bharat Engineering Company Limited, Kolkata vs. C.I.T Kol - 1, Kolkata

In the result the appeal of the assessee is allowed

ITA 840/KOL/2013[2008-2009]Status: DisposedITAT Kolkata15 Jul 2016AY 2008-2009

Bench: Hon’Ble Sri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am] I.T.A No. 840/Kol/2013 Assessment Year : 2008-09 Mc.Nally Bharat Engineering -Vs.- C.I.T., Circle-1, Company Limited, Kolkata Kolkata. [Pan : Aabcm 9443 R] (Respondent) (Appellant)

For Appellant: Shri Soumen Adak, FCA

Section 142(1)Section 263

…tible debentures were allowable as revenue expenditure irrespective of the fact that the date of conversion after six months fell within the same year. Further, it has been held by Hon'ble Rajasthan High Court in the case of CIT -vs.- Secure Meters Ltd (2010) 321 ITR 611 (Raj) that debentures when issued are a loan, and whether it is convertible or non convertible does not militate against the nature of the debenture and therefore, the expenditure incurred would be admissible as revenue expenditure. The SLP filed by the Department against the aforesaid case was rejected by the Hon'ble Supreme Court vide SLP No. C…

Prime Focus Ltd.., Mumbai vs. D.C.I.T. (Ods) C. RG. 7, Mumbai

In the result, appeal of the Revenue and the Cross Objection filed by the assessee are dismissed

ITA 8364/MUM/2011[2008-09]Status: DisposedITAT Mumbai04 Feb 2016AY 2008-09

Bench: Shri D. Karunakara Rao & Shri Amarjit Singhi.T.A. No.8364/M/2011 (Assessment Year: 2008-2009) C.O.233/M/2012 (Arising Out Of Ita No.8066/M/2011) (Ay 2008-09) Prime Focus Limited, फनाभ/ Dcit (Osd-1), 1S T Floor, Old Dubbing & Central Range, Aayakar Vs. Recording Studio Building, Bhavan, Marine Lines, Dadasaheb Phalke Chitra Mumbai – 400 020. Nagari,Filmcity Campus, Opposite Hotel Food Paradise, Filmcity, Goregaon (E), Mumbai – 400 065. स्थामी रेखा सं./ Pan : Aaacp6811B (अऩीराथी /Appellant) .. (प्रत्मथी / Respondent)

For Appellant: Shri R.R. VoraFor Respondent: Shri M. Dayasagar, DR

Section 14ASection 234D

…his regard, reliance is placed on the following decisions wherein it has been held that expenses incurred on FCCB‟s are allowable as revenue expenditure even after considering the special Bench ruling in the case of Ashima Syntex (supra):  Secure Meters Ltd (321 ITR 611) (Rajasthan High Court) – Supreme court has dismissed department‟s SLP vide appeal (Civil) 10548) of 2008 dated 11th August, 2009.  Sukhjit Starch & Chemicals Ltd (326 ITR 29) (P & H) High Court  ITC Hotels Ltd (334 ITR 109) (Karnataka High Court)  Mahindra and Mahindra Limited (36 SOT 348) (Mumbai Tribunal) Dolphin Offshore Enterprises (I) Lt…

Larsen & Toubro Ltd, Mumbai vs. DCIT Cir 2(2), Mumbai

In the result, assessee’s appeal stands allowed

ITA 3255/MUM/2010[1990-91]Status: DisposedITAT Mumbai30 Oct 2015AY 1990-91

Bench: Shri Saktijit Dey & Shri Ashwani Taneja

For Appellant: Shri J.D. MistriFor Respondent: Shri Goli Srinivas Rao

Section 115JSection 143(3)Section 260ASection 271(1)(c)

…mitted that different High Courts have also held that expenditure incurred in relation to issuance of convertible debenture can be allowed as revenue expenditure. In this context, he relied upon the following case laws:- i) CIT v/s Secure Meters Ltd., [2011] 321 ITR 611 (Raj.) ii) CIT v/s Sukhijit Starch & Chemicals Ltd., [2010] 326 ITR 29 (P&H); iii) CIT v/s Havells India Ltd., [2012] 352 ITR 376 (P&H); iv) CIT v/s ITC Hotels Ltd., [2010] 334 ITR 109 (Kar.); v) CIT v/s Ranbaxy Laboratories Ltd., [2013] ITA no.93 of 2000 (Del.) Thus, he submitted that in view of the fact that different High Courts have held the…

CIT vs. Havells India Ltd

In the result the appeals filed by the revenue are disposed of with no

ITA/57/2012HC Delhi21 May 2012

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE R.V.EASWAR

Section 195Section 260ASection 40Section 9(1)(vii)

…the capital base of a company should be treated as capital expenditure. He accordingly disallowed the expenditure of `92,67,841/-. 24. On appeal the CIT (Appeals) referred to the judgment of the Rajasthan High Court in CIT v. Secure Meters Ltd., (2010) 321 ITR 611 (Raj.) in which it was held that the position has to be examined only with reference to the time when the debentures were issued and that the fact that at a future point of time they were to be converted into shares was ITA 55/2012 & 57/2012 Page 20 of 22 irrelevant in order to decide the allowability of the expenditure inc…

Commissioner of Income Tax vs. Havells India Ltd

In the result the appeals filed by the revenue are disposed of with no

ITA/55/2012HC Delhi21 May 2012

Section 195Section 201Section 260ASection 40Section 9(1)(vii)

…the capital base of a company should be treated as capital expenditure. He accordingly disallowed the expenditure of `92,67,841/-. 24. On appeal the CIT (Appeals) referred to the judgment of the Rajasthan High Court in CIT v. Secure Meters Ltd., (2010) 321 ITR 611 (Raj.) in which it was held that the position has to be examined only with reference to the time when the debentures were issued and that the fact that at a future point of time they were to be converted into shares was 2012:DHC:3509-DB ITA 55/2012 & 57/2012 Page 20 of 22 irrelevant in order to decide the allowability of th…

CIT vs. Havells India Ltd

In the result the appeals filed by the revenue are disposed of with no

ITA - 55 / 2012HC Delhi21 Apr 2012

Section 195Section 201Section 260ASection 40Section 9(1)(vii)

…the capital base of a company should be treated as capital expenditure. He accordingly disallowed the expenditure of `92,67,841/-. 24. On appeal the CIT (Appeals) referred to the judgment of the Rajasthan High Court in CIT v. Secure Meters Ltd., (2010) 321 ITR 611 (Raj.) in which it was held that the position has to be examined only with reference to the time when the debentures were issued and that the fact that at a future point of time they were to be converted into shares was 2012:DHC:2688-DB ITA 55/2012 & 57/2012 Page 20 of 22 irrelevant in order to decide the allowability of th…

CIT vs. Jetlife India Ltd

ITA/1276/2011HC Delhi13 Dec 2011

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE R.V.EASWAR

Section 2Section 2(12)Section 260ASection 269TSection 271E

…nt with effect from 1st June, 2002 would apply only in cases of deposits and not in cases of loans. Madras High Court in the case of A.M. Shamsudden Vs. Union of India [2000] 244 ITR 266 (Mad.) and Rajasthan High Court in CIT Vs. Secure Meters Ltd. (2010) 321 ITR 611 have taken a similar view. 10. In view of the aforesaid decisions, the Legislature by Finance Act had expanded the ambit and scope of Section 269T to cover repayment of loans. This amendment, however, is with effect from 1st ITA 1276/2011 & 1277/2011 Page 5 of 5 June, 2002. The…

CIT vs. Jetlife India Ltd

ITA - 1277 / 2011HC Delhi13 Dec 2011

Section 2Section 2(12)Section 260ASection 269TSection 271E

…ith effect from 1 St June, 2002 would apply only in cases of deposits and not in cases of loans. Madras High Court in the case of A.M. S/,amsudden Vs. Union of India [2000] 244 ITR 266. (Mad.) and Rajasthan High Court in CIT Vs. Secure Meters Ltd. (2010) 321 ITR 611 have taken a similar view. In view of the aforesaid decisions, the Legislature by Finance Act had expanded the ambit and scope of Section 269T to cover repayment of loans. This amendment, however, is with effect from 1st ITA 1276/20 11 & 1277/2011 Page 4 of 5 2011:DHC:11820-DB I June, 2002. The assessment years in question are 1999-2000…

CIT vs. Jetlife India Ltd

ITA - 1276 / 2011HC Delhi13 Dec 2011

Section 2Section 2(12)Section 260ASection 269TSection 271E

…nt with effect from 1st June, 2002 would apply only in cases of deposits and not in cases of loans. Madras High Court in the case of A.M. Shamsudden Vs. Union of India [2000] 244 ITR 266 (Mad.) and Rajasthan High Court in CIT Vs. Secure Meters Ltd. (2010) 321 ITR 611 have taken a similar view. 10. In view of the aforesaid decisions, the Legislature by Finance Act had expanded the ambit and scope of Section 269T to cover repayment of loans. This amendment, however, is with effect from 1st 2011:DHC:6371-DB ITA 1276/2011 & 1277/2011 Page 5 of 5…