What is CIT v. Southern Roadways Ltd. authority for?

Expenditure on software useful for a short period or requiring regular updates, for which subscription fees are paid, constitutes revenue expenditure, distinguishable from capitalized software purchased on a perpetual license model, based on the test of enduring benefit.

How many judgments cite CIT v. Southern Roadways Ltd.?

76 judgments on BharatTax cite CIT v. Southern Roadways Ltd. (288 ITR 15), spanning 2011 to 2026.

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

It is most often cited in judgments turning on Section 10A, Section 37, Section 37(1) of the Income Tax Act, Section 43(5), Section 10A of the Income Tax Act, Section 194J of the Income Tax Act.

CIT v. Southern Roadways Ltd. (288 ITR 15)

ITO 21(2)(3), Mumbai vs. Vishal K Ganatra, Mumbai

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

ITA 133/MUM/2013[2007-08]Status: DisposedITAT Mumbai10 Aug 2016AY 2007-08

Bench: Shri Jason P. Boaz, Am & Shri Sandeep Gosain, Jm Income Tax Officer-21(2)(4), Shri Vishal K. Ganatra Room No.503, 5Th Floor, C-10, 3Rd 12,Mahavir Bldg. Pratyaksh Kar Bhavan, Floor, K.D. Road, Vile Bandra Kurla Complex, Parle (W), Bandra (E), Mumbai-400 056. Mumbai-400 051. Pan: Aaxpg 1027Q Appellant .. Respondent

Section 133(6)Section 143(1)Section 41(1)

…ed in year under consideration, addition made was liable to be set aside. Merely because no confirmation has been filed by the assessee during the year cannot be a basis that the liability is no longer payable by the assessee as held in 37 DTR 321(del)(trib), 282 ITR 379(Mad). Hence on appreciation of the (acts and circumstances in the case of present appellant also I find that the conditions of 41(1) are not satisfied. Hence the addition of Rs.5,57,327/- and Rs.25,11,806/- made by the AO in respect of sundry creditors is directed to be deleted.” We have heard the rival submissions and carefully perused the mate…

ITO, Ward-9(3), Kolkata vs. M/S Chanakya Stock Broking Services Ltd., Kolkata

In the result, Revenue’s appeal stands dismissed

ITA 611/KOL/2012[2006-07]Status: DisposedITAT Kolkata05 Jul 2016AY 2006-07

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmedassessment Year :2006-07

Section 143(3)Section 194CSection 40

…nsidered view, the issue of capitalizing the same expense does not arise and we uphold the order of Ld. CIT(A). In this connection we are putting our reliance in the judgment of Hon’ble High Court of MADRAS in the case of CIT Vs. SOUTHERN ROADWAYS LTD. (2006) 282 ITR 379. The relevant extract of the order is reproduced below. "(iv) Whether, in the facts and circumstances of the case, the Tribunal was right in holding that Rs. 24,12,000 paid to HCL for purchase of new computers allowable as a deduction as a revenue expenditure ?" 7.2. Insofar as fourth question is concerned, it is not in dispute that the assessee…

DCIT, Circle - 3, Kolkata vs. M/S. R. Piyarelall Import & Export Ltd., Kolkata

In the result, the appeal filed by the Revenue is allowed partly for statistical purposes and the Cross Objection filed by the assessee is also allowed for statistical purposes

ITA 952/KOL/2010[2006-07]Status: DisposedITAT Kolkata27 May 2016AY 2006-07

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

For Appellant: Shri R.N.Rustogi, FCAFor Respondent: Shri Prabal Choudhury, JCIT, Sr.DR

Section 143(3)Section 43(5)

…he purpose of business for improvement and to enable existing system to run efficiently and to keep pace with the latest technology and the AO was of the view that the case laws relied on by the assessee in the case of CIT vs Southern Roadways Ltd reported in 288 ITR 15 (Mad) and CIT vs. Janakiram Mills Ltd (2005) 196 CTR (Mad) 551 : (2005) 275 ITR 403 (Mad) are very old and cannot be relied. Let us examine the case law in CIT vs Southern Roadways Ltd where question before the Hon’ble Court was that whether, on the facts and circumstances of the case, the Tribunal was right in holding that the expenditure incurre…

DCIT, Chennai vs. Cholamandalam Investment and Finance Company Limited, Chennai

In the result, the appeal of the Revenue in ITA

ITA 1431/CHNY/2014[2001-02]Status: DisposedITAT Chennai28 Apr 2016AY 2001-02

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri. Milind S. Kothari, C.AFor Respondent: Shri. Madhukar Bhusari, CIT

Section 139Section 139(5)Section 143(1)Section 143(2)Section 143(3)Section 147Section 148

…filed an appeal before the Commissioner of Income Tax (Appeals). 11.4 The ld. Commissioner of Income Tax (Appeals) has considered the findings of the Assessing Officer and relied on the jurisdictional High Court in the case of CIT vs. Southern Roadways Ld (304 ITR 84) held as under:- ‘’that expenditure incurred on software packages was revenue expenditure and that such software enhances the efficiency of the operation and was not an aid in the manufacturing process and therefore there is no enduring benefit or acquisition of any capital asset by an assessee. The concept of enduring benefit must respond to th…

Cholamandalam Investment and Finance Company Limited, Chennai vs. ACIT, Chennai

In the result, the appeal of the Revenue in ITA

ITA 1180/CHNY/2014[2005-06]Status: DisposedITAT Chennai28 Apr 2016AY 2005-06

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri. Milind S. Kothari, C.AFor Respondent: Shri. Madhukar Bhusari, CIT

Section 139Section 139(5)Section 143(1)Section 143(2)Section 143(3)Section 147Section 148

…filed an appeal before the Commissioner of Income Tax (Appeals). 11.4 The ld. Commissioner of Income Tax (Appeals) has considered the findings of the Assessing Officer and relied on the jurisdictional High Court in the case of CIT vs. Southern Roadways Ld (304 ITR 84) held as under:- ‘’that expenditure incurred on software packages was revenue expenditure and that such software enhances the efficiency of the operation and was not an aid in the manufacturing process and therefore there is no enduring benefit or acquisition of any capital asset by an assessee. The concept of enduring benefit must respond to th…

Chennai Petroleum Corpn. Ltd., Chennai vs. DCIT, Chennai

In the result, the appeal of the assessee is partly allowed

ITA 720/CHNY/2015[2008-09]Status: DisposedITAT Chennai26 Feb 2016AY 2008-09

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri. R. Vijayaraghavan, AdvocateFor Respondent: Shri. M.N. Maurya, IRS, CIT

Section 143Section 143(2)Section 143(3)Section 148Section 619(3)(b)

…y and exclusively for the purpose of business shall be allowed in computing the income chargeable under the head "profits and gain of business or profession. CPCL has relied on the hon'ble jurisdictional High court in the case of CIT v. Southern Roadways Ltd (304 ITR 84), wherein, a similar issue has been addressed." The Assessing Officer considered the assessee’s submissions and treated the expenditure as capital in nature as it does not satisfy the conditions of Revenue, the ld. Authorised Representative submitted that the Hon’ble Apex Court in the case of CIT vs. Mangayarkarasi Mills (P) Ltd 315 ITR 114 hel…