CIT v. Southern Switch Gear Ltd.

148 ITR 272High Court1984#3545 most cited

What is CIT v. Southern Switch Gear Ltd. authority for?

Expenditure incurred for obtaining technical know-how under a collaboration agreement, where it provides for future benefits and is paid in installments, may be treated as capital expenditure. This is especially relevant when the know-how is intended to enhance the assessee's business capabilities and products.

33

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2008 to 2026.

Also referred to as

CIT v. Southern Switch Gear Ltd. · 148 ITR 272 · collaboration agreement · technical know-how · lumpsum payment · capital expenditure · revenue expenditure · section 35AB · enduring benefit

Sections most often in play

Section 143(3)Section 249(3)Section 250Section 32Section 68Section 69C

Issues it is cited on

section 35absection 35asection 35abbtest of enduring benefitresulting companyenduring benefitpptdemergerintangible assetsjdasection 10(34)revenue expenditure

Judgments citing CIT v. Southern Switch Gear Ltd.

CIT vs. Bharti Hexacom Limited

ITA/996/2011HC Delhi19 Dec 2013

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE SANJEEV SACHDEVA

…+ % IN THE HIGH COURT OF DELHI AT NEW DELHI V ITA 1679/2010 Reserved on: 13"' August, 2013 Date of Decision: |1+^December, 2013 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: MrAjay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 1680/2010 COMMISSIONER OF INCOME TAX .....Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: Mr.Ajay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 114/2012 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Abhishek Maratha, Senior Sta…

Commissioner of Income Tax vs. Bharti Telenet Ltd

ITA/1333/2010HC Delhi19 Dec 2013

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE SANJEEV SACHDEVA

…+ % IN THE HIGH COURT OF DELHI AT NEW DELHI V ITA 1679/2010 Reserved on: 13"' August, 2013 Date of Decision: |1+^December, 2013 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: MrAjay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 1680/2010 COMMISSIONER OF INCOME TAX .....Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: Mr.Ajay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 114/2012 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Abhishek Maratha, Senior Sta…

CIT vs. Bhartihexacom Ltd

ITA/114/2012HC Delhi19 Dec 2013

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE SANJEEV SACHDEVA

…+ % IN THE HIGH COURT OF DELHI AT NEW DELHI V ITA 1679/2010 Reserved on: 13"' August, 2013 Date of Decision: |1+^December, 2013 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: MrAjay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 1680/2010 COMMISSIONER OF INCOME TAX .....Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: Mr.Ajay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 114/2012 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Abhishek Maratha, Senior Sta…

CIT vs. Bharti Airtel Ltd

ITA/177/2012HC Delhi19 Dec 2013

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE SANJEEV SACHDEVA

…+ % IN THE HIGH COURT OF DELHI AT NEW DELHI V ITA 1679/2010 Reserved on: 13"' August, 2013 Date of Decision: |1+^December, 2013 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: MrAjay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 1680/2010 COMMISSIONER OF INCOME TAX .....Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: Mr.Ajay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 114/2012 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Abhishek Maratha, Senior Sta…

Commissioner of Income Tax vs. Bharti Hexacom Ltd

ITA - 1328 / 2010HC Delhi19 Dec 2013

…+ % IN THE HIGH COURT OF DELHI AT NEW DELHI V ITA 1679/2010 Reserved on: 13"' August, 2013 Date of Decision: |1+^December, 2013 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: MrAjay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 1680/2010 COMMISSIONER OF INCOME TAX .....Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: Mr.Ajay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 114/2012 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Abhishek Maratha, Senior Sta…

CIT vs. Bharti Cellular Ltd

ITA - 1679 / 2010HC Delhi19 Dec 2013

…+ % IN THE HIGH COURT OF DELHI AT NEW DELHI V ITA 1679/2010 Reserved on: 13"' August, 2013 Date of Decision: |1+^December, 2013 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: MrAjay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 1680/2010 COMMISSIONER OF INCOME TAX .....Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: Mr.Ajay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 114/2012 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Abhishek Maratha, Senior Sta…

Commissioner of Income Tax vs. Bharti Hexacom Ltd

ITA - 1336 / 2010HC Delhi19 Dec 2013

…ITA 1336/2010 & conn. cases. Page 1 of 46 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA No. 1336/2010 Reserved on: 13th August, 2013 % Date of Decision: 19th December, 2013 COMMISSIONER OF INCOME TAX ..... Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel versus BHARTI HEXACOM LTD ..... Respondent Through: Mr.Ajay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 1679/2010…

CIT vs. Bharti Cellular Ltd

ITA - 1680 / 2010HC Delhi19 Dec 2013

…+ % IN THE HIGH COURT OF DELHI AT NEW DELHI V ITA 1679/2010 Reserved on: 13"' August, 2013 Date of Decision: |1+^December, 2013 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: MrAjay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 1680/2010 COMMISSIONER OF INCOME TAX .....Appellant Through: Mr.Kamal Sawhney, Sr. Standing Counsel Versus BHARTI CELLULAR LTD Respondent Through: Mr.Ajay Vohra, Ms.Kavita Jha and Mr.Kaanan Kapur, Advocates ITA 114/2012 COMMISSIONER OF INCOME TAX Appellant Through: Mr.Abhishek Maratha, Senior Sta…

CIT vs. Munjal Showa Ltd

ITA/149/2011HC Delhi03 Feb 2012

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

Section 143(1)Section 143(2)Section 143(3)Section 147

…ITA 149 & 150 of 2011 Page 1 of 13 $~6 & 7 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 149/2011 & ITA 150/2011 % Date of Decision : 3rd February, 2012. CIT ..... Appellant Through: Mr.N.P.Sahni, Advocate versus MUNJAL SHOWA LTD ..... Respondent Through: Ms.Kavita Jha, Mr.Somnath Shukla and Mr.Vijay Kumar Punna, Advocates.…

CIT vs. Munjal Showa Ltd

ITA - 150 / 2011HC Delhi03 Feb 2012
Section 143(1)Section 143(2)Section 143(3)Section 147

…ITA 149 & 150 of 2011 Page 1 of 13 $~6 & 7 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 149/2011 & ITA 150/2011 % Date of Decision : 3rd February, 2012. CIT ..... Appellant Through: Mr.N.P.Sahni, Advocate versus MUNJAL SHOWA LTD ..... Respondent Through: Ms.Kavita Jha, Mr.Somnath Shukla and Mr.Vijay Kumar Punna, Advocates.…

CIT vs. Munjal Showa Ltd

ITA - 149 / 2011HC Delhi03 Feb 2012
Section 143(1)Section 143(2)Section 143(3)Section 147

…ITA 149 & 150 of 2011 Page 1 of 13 $~6 & 7 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 149/2011 & ITA 150/2011 % Date of Decision : 3rd February, 2012. CIT ..... Appellant Through: Mr.N.P.Sahni, Advocate versus MUNJAL SHOWA LTD ..... Respondent Through: Ms.Kavita Jha, Mr.Somnath Shukla and Mr.Vijay Kumar Punna, Advocates.…

CIT vs. Honda Siel Power Products Ltd

ITA/748/2011HC Delhi20 May 2011

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE M.L. MEHTA

Section 263

…s such rights, as discussed above, may be treated partly towards cjpital and partly towards the revenue. The Hon'ble Supreme Court in the Southern Switch Gear Ltd' Vs. CIT reported in 232 ITR 359 (SC) and Hon'ble Madras High court in the same case reported in 148 ITR 272 held that 25o/o of such royalty expenses constituting a capital asset. ir- i </ Following the same judgment, 25o/o of total royalty expensel of Rs.30419881/- which comes to Rs.760q9701- is treated as being spent towards acquisition of capital asset and thus, is dlsailowed. Since the assessee has filed incorrect particulars of its income, penalt…

Commr.of Income Tax-II, Chandigarh vs. M/S Swaraj Engines Ltd

The Appeal is allowed accordingly with no order as to costs

C.A. No.-003347-003347 - 2008Supreme Court06 May 2008
Section 35A

…the following judgments. A. Femmur Woodruf & Co.Ltd. V. CIT 102 ITR 665 (Mad) B. Ram Kumar Pharmaceuticals Works V CIT 119 ITR 33 (All). C. CIT V. Warmar Hindustan Ltd. 160 ITR 217 (AP) D. CIT V. Southern Switch Gears ltd. 148 ITR 272 (Mad)" On bare reading of the said question, it is clear that applicability of Section 35AB in the context of royalty paid to Kirloskar as a percentage of the net sale price being revenue or capital in nature and depending on the answer to that question, the applicability of Section 35AB also arose for determination before the High Court…