CIT v. Toyota Kirloskar Motor Pvt. Ltd.

349 ITR 65High Court2012#9214 most cited
12

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2015 to 2026.

Sections most often in play

Section 1961Section 35(1)(i)Section 35(2AB)Section 90Section 234DSection 37Section 170Section 234A

Issues it is cited on

scientific research expendituresection 35(1)(i)section 2(43)depreciation on softwaresection 170business transfer agreementr&d expendituresection 35(1)opening wdvsection 40(a)(ii)depreciation on goodwillslump sale

Judgments citing CIT v. Toyota Kirloskar Motor Pvt. Ltd.

EDGEVERVE SYSTEMS LIMITED,BANGALORE vs. ACIT, CIRCLE-2(2)(1), BANGALORE

ITA 294/BANG/2025[2021-22]Status: DisposedITAT Bangalore30 Jan 2026AY 2021-22

Bench: Shri Waseem Ahmed & Shri Soundararajan K

For Appellant: Shri Padamchand Kincha, CAFor Respondent: Shri Shivanad Kalakeri, CIT (DR)
Section 250Section 254Section 37Section 90

…IN THE INCOME TAX APPELLATE TRIBUNAL 'A' BENCH, BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI SOUNDARARAJAN K, JUDICIAL MEMBER ITA Nos.290 to 294/Bang/2025 Assessment Year: 2017-18 - 2021-22 Edgeverve Systems Limited, Plot No.44, Hosur Main Road, Electronic City, Bangalore - 560 100. PAN – AADCE 6300 K APPELLANT Vs. The Asst. Commissioner of Income Tax, Circle - 2(2)(1), Bangalore. RESPONDENT Assessee by : Shri Padamchand Kincha, CA Revenue by : Shri Shivanad Kalakeri, CIT (DR) Date of hearing : 11.12.2025 Date of Pronouncement : 30.01.2026 ORDER PER WASEEM AHMED, ACCOUNTANT MEMBER: These five a…

EDGEVERVE SYSTEMS LIMITED ,BANGALORE vs. ACIT, CIRCLE-2(2)(1), BANGALORE

In the result, both the appeals of the assessee are partly allowed for statistical purposes

ITA 293/BANG/2025[2020-21]Status: DisposedITAT Bangalore30 Jan 2026AY 2020-21

Bench: Shri Waseem Ahmed & Shri Soundararajan K

For Appellant: Shri Padamchand Kincha, CAFor Respondent: Shri Shivanad Kalakeri, CIT (DR)
Section 250Section 254Section 37Section 90

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI SOUNDARARAJAN K, JUDICIAL MEMBER ITA Nos.290 to 294/Bang/2025 Assessment Year: 2017-18 - 2021-22 Edgeverve Systems Limited, Vs. The Asst. Commissioner of Plot No.44, Hosur Main Road, Income Tax, Electronic City, Circle – 2(2)(1), Bangalore – 560 100. Bangalore. PAN – AADCE 6300 K APPELLANT RESPONDENT Assessee by : Shri Padamchand Kincha, CA Revenue by : Shri Shivanad Kalakeri, CIT (DR) Date of hearing : 11.12.2025 Date of Pronouncement : 30.01.2026 O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: T…

EDGEVERVE SYSTEMS LIMITED ,BANGALORE vs. ACIT, CIRCLE-2(2)(1), BANGALORE

In the result, both the appeals of the assessee are partly allowed for statistical purposes

ITA 292/BANG/2025[2019-20]Status: DisposedITAT Bangalore30 Jan 2026AY 2019-20

Bench: Shri Waseem Ahmed & Shri Soundararajan K

For Appellant: Shri Padamchand Kincha, CAFor Respondent: Shri Shivanad Kalakeri, CIT (DR)
Section 250Section 254Section 37Section 90

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI SOUNDARARAJAN K, JUDICIAL MEMBER ITA Nos.290 to 294/Bang/2025 Assessment Year: 2017-18 - 2021-22 Edgeverve Systems Limited, Vs. The Asst. Commissioner of Plot No.44, Hosur Main Road, Income Tax, Electronic City, Circle – 2(2)(1), Bangalore – 560 100. Bangalore. PAN – AADCE 6300 K APPELLANT RESPONDENT Assessee by : Shri Padamchand Kincha, CA Revenue by : Shri Shivanad Kalakeri, CIT (DR) Date of hearing : 11.12.2025 Date of Pronouncement : 30.01.2026 O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: T…

EDGEVERVE SYSTEMS LIMITED,BANGALORE vs. ACIT, CIRCLE-2(2)(1), BANGALORE

ITA 291/BANG/2025[2018-19]Status: DisposedITAT Bangalore30 Jan 2026AY 2018-19

Bench: Shri Waseem Ahmed & Shri Soundararajan K

For Appellant: Shri Padamchand Kincha, CAFor Respondent: Shri Shivanad Kalakeri, CIT (DR)
Section 250Section 254Section 37Section 90

…IN THE INCOME TAX APPELLATE TRIBUNAL 'A' BENCH, BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI SOUNDARARAJAN K, JUDICIAL MEMBER ITA Nos.290 to 294/Bang/2025 Assessment Year: 2017-18 - 2021-22 Edgeverve Systems Limited, Plot No.44, Hosur Main Road, Electronic City, Bangalore - 560 100. PAN – AADCE 6300 K Vs. The Asst. Commissioner of Income Tax, Circle - 2(2)(1), Bangalore. APPELLANT RESPONDENT Assessee by : Shri Padamchand Kincha, CA Revenue by : Shri Shivanad Kalakeri, CIT (DR) Date of hearing : 11.12.2025 Date of Pronouncement : 30.01.2026 ORDER PER WASEEM AHMED, ACCOUNTANT MEMBER: These five a…

EDGEVERVE SYSTEMS LIMITED ,BANGALORE vs. ACIT, CIRCLE-2(2)(1), BANGALORE

In the result, both the appeals of the assessee are partly allowed for statistical purposes

ITA 290/BANG/2025[2017-18]Status: DisposedITAT Bangalore30 Jan 2026AY 2017-18

Bench: Shri Waseem Ahmed & Shri Soundararajan K

For Appellant: Shri Padamchand Kincha, CAFor Respondent: Shri Shivanad Kalakeri, CIT (DR)
Section 250Section 254Section 37Section 90

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI SOUNDARARAJAN K, JUDICIAL MEMBER ITA Nos.290 to 294/Bang/2025 Assessment Year: 2017-18 - 2021-22 Edgeverve Systems Limited, Vs. The Asst. Commissioner of Plot No.44, Hosur Main Road, Income Tax, Electronic City, Circle – 2(2)(1), Bangalore – 560 100. Bangalore. PAN – AADCE 6300 K APPELLANT RESPONDENT Assessee by : Shri Padamchand Kincha, CA Revenue by : Shri Shivanad Kalakeri, CIT (DR) Date of hearing : 11.12.2025 Date of Pronouncement : 30.01.2026 O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: T…

ORCHASP LIMITED ,HYDERABAD vs. DEPUTY COMMISSIONER OF INCOME TAX ,CIRCLE-1(2) , HYDERABAD

In the result, the Tax Case Appeals are dismissed and the substantial questions of law are answered against the Revenue

ITA 182/HYD/2022[2011-12]Status: DisposedITAT Hyderabad20 Apr 2023AY 2011-12

Bench: Shri R.K. Panda & Shri K. Narasimha Charyassessment Year: 2011-12 Orchasp Limited Vs. Dy. Cit Hyderabad Circle 1(2) Pan:Aabcc4776F Hyderabad (Appellant) (Respondent) Assessee By: Shri P. Murali Mohan Rao, Ca Revenue By: Shri B. Yadagiri, Dr Date Of Hearing: 13/04/2023 Date Of Pronouncement: 20/04/2023 Order Per R.K. Panda, A.M This Appeal Filed By The Assessee Is Directed Against The Order Dated 23/03/2022 Of The Learned Cit (A)- Nfac, Relating To A.Y. 2011-12. 2. The Grounds Raised By The Assessee Are As Under: “1. On The Facts & In The Circumstances Of The Case The Appellate Order Passed By The Cit(A) Is Erroneous Both On Facts & In Law To The Extent The Order Is Prejudicial To The Interest Of The Appellant. 2. The Cit(A) Ought To Have Appreciated The Fact That The Amount Of Investment Made Is Completely In Wholly Owned Subsidiary Company Which Is Revenue In Nature & Not A Capital Expenditure. 3. The Ld. Cit(A) Ought To Have Accepted The Investments Written Off Of Rs.3,60,72,141/- Since The Said Amount Was Not Received From The Third Party To The Subsidiary & Thus, The Same Amount Was Written Off By The Virtue Of The Circular No. 69 Dt. 27-07-2011 Issued By Rbi.

For Appellant: Shri P. Murali Mohan Rao, CAFor Respondent: Shri B. Yadagiri, DR
Section 143(2)Section 271(1)(c)Section 37Section 37(1)

…With regard to the license fee, which was for acquiring a software license of shelf life of less than two years was held to be as allowable as revenue expenditure in CIT V. Toyota Kirloskar Motors (P) Lid. (2013] 30 taxmann.com 294/213 Taxman 49 (Mag.M[2012) 349 ITR 65 (Kar) In CIT V, Robert Bosch India Ltd. 2014] 50 taxmann.com 275 (Kar.) the amount paid by the assessee for purchase of software was held to be revenue expenditure even when the same was used in course of business of assessee not only during the assessment year under Consideration, but also during the subsequent year. In Oriental Bank of Commerce…

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-3(1)(1), BANGALORE vs. M/S INFOSYS LIMITED , BANGALORE

In the result, the appeal filed by the assessee as well as by revenue are partly allowed for statistical purposes

ITA 809/BANG/2018[2013-14]Status: DisposedITAT Bangalore09 Jan 2023AY 2013-14

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariit(Tp)A No.735/Bang/2018 Assessment Year: 2013-14

For Appellant: Shri Padam Chand Khincha, A.RFor Respondent: Sri Sreenivas T. Bidari, D.R
Section 11Section 14ASection 194JSection 234BSection 40Section 80J

…60%. IT(TP)A No.735/Bang/2018 & M/s. Infosys Limited, Bangalore Page 26 of 85 20.3 Assessee also placed reliance before the ld. CIT(A) on the decision of Hon'ble Karnataka High Court in the case of IBM India Ltd. (357 ITR 88) and Toyota Kirloskar Motor Ltd (349 ITR 65) and claimed that expenditure be regarded as revenue expenditure when the same is incurred on application software and not system software. 21. The ld. CIT(A) has considered the order of the assessing officer, the arguments made by the assessee and the case laws relied upon. He observed from the assessment order that the assessing officer has not…

M/S INFOSYS LTD ,BANGALOR E vs. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-3(1)(1), BANGALORE

In the result, the appeal filed by the assessee as well as by revenue are partly allowed for statistical purposes

ITA 735/BANG/2018[2013-14]Status: DisposedITAT Bangalore09 Jan 2023AY 2013-14

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariit(Tp)A No.735/Bang/2018 Assessment Year: 2013-14

For Appellant: Shri Padam Chand Khincha, A.RFor Respondent: Sri Sreenivas T. Bidari, D.R
Section 11Section 14ASection 194JSection 234BSection 40Section 80J

…60%. IT(TP)A No.735/Bang/2018 & M/s. Infosys Limited, Bangalore Page 26 of 85 20.3 Assessee also placed reliance before the ld. CIT(A) on the decision of Hon'ble Karnataka High Court in the case of IBM India Ltd. (357 ITR 88) and Toyota Kirloskar Motor Ltd (349 ITR 65) and claimed that expenditure be regarded as revenue expenditure when the same is incurred on application software and not system software. 21. The ld. CIT(A) has considered the order of the assessing officer, the arguments made by the assessee and the case laws relied upon. He observed from the assessment order that the assessing officer has not…

NAUVATA ENGINEERING PRIVATE LTD vs. PRINCIPAL COMMISSIONER OF INCOME TAX-5

WP/6171/2020HC Karnataka17 Mar 2020

Bench: The Hon'Ble Mr.Justice S. Sunil Dutt Yadav

Section 143(3)

…s further contended that the question of treating as expenditure the software licencing fee paid was a subject matter in issue before this Court in the case of Commissioner of Income-Tax and another v. Toyota Kirloskar Motors Pvt. Ltd reported in (2012) 349 ITR 65 (Karn) wherein, this Court at para-3 of its decision has observed that where the benefits of a software by way of licencing is for limited period, the expenditure incurred for acquisition of such use of software is allowable as revenue expenditure. The reliance is also placed on the decision of this Court in the case of Commissioner of Inco…

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-6(1)(1), BANGALORE vs. M/S SASKEN COMMUNICATION TECHNOLOGIES LTD , BANGALORE

In the result, the appeal of the assessee is partly allowed in the terms indicated above

ITA 882/BANG/2018[2005-06]Status: DisposedITAT Bangalore20 Dec 2019AY 2005-06

Bench: Shri N. V. Vasudevan & Shri A. K. Garodia

For Appellant: Shri. Padam Chand Khincha, CAFor Respondent: Smt. Neera Malhotra, CIT DR
Section 41(1)

…allow depreciation thereon and recompute the disallowance ITA Nos.2810/Bang/2017 and 882/Bang/2018 Page 3 of 15 accordingly. The Tribunal has referred to the judgment of the Hon’ble Karnataka High Court rendered in the case of CIT Vs. Toyota Kirloskar Ltd., 349 ITR 65 wherein it was held that software expenses for licence up to 2 years is revenue in nature and is fully allowable as a deduction. Respectfully following this judgment, the Tribunal held in that year that the AO is directed to allow the deduction in respect of software expenses having licence period up to 2 years after considering and verifying the…

DCIT, BANGALORE vs. M/S SJS ENTERPRISES PVT. LTD.,, BANGALORE

In the result, the Revenue’s appeal is dismissed

ITA 680/BANG/2014[2009-10]Status: DisposedITAT Bangalore28 Dec 2015AY 2009-10

Bench: Smt. Asha Vijayaraghavan & Shri Abraham P. Georgeassessment Year : 2009-10

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Shri Sunil Kumar Agarwala, Jt. CIT(DR)

…n the other hand, supported the order of CIT(Appeals) and relied on the following decisions:- CIT v. Finlay Mills Ltd. 20 ITR 475 (SC) CIT v. Panacea Biotech Ltd., Delhi HC judgment dated 17.1.2012 in ITA No.22 & 24/2012. CIT v. Toyota Kirloskar Motor P Ltd. 349 ITR 65 (Kar) CIT v. IBM India Ltd. 357 ITR 88 (Kar) 38. We have heard both the parties. The Hon’ble Supreme Court in Empire Jute Co. Ltd. v. CIT, 124 ITR 1 (SC) at page 10 held as follows:- “ …… There may be cases where expenditure, even if incurred for obtaining advantage of enduring benefit, may, none the less, be on revenue account and the test of e…

SJS ENTERPRISES PVT. LTD.,,BANGALORE vs. DCIT, BANGALORE

In the result, the Revenue’s appeal is dismissed

ITA 660/BANG/2014[2009-10]Status: DisposedITAT Bangalore28 Dec 2015AY 2009-10

Bench: Smt. Asha Vijayaraghavan & Shri Abraham P. Georgeassessment Year : 2009-10

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Shri Sunil Kumar Agarwala, Jt. CIT(DR)

…n the other hand, supported the order of CIT(Appeals) and relied on the following decisions:- CIT v. Finlay Mills Ltd. 20 ITR 475 (SC) CIT v. Panacea Biotech Ltd., Delhi HC judgment dated 17.1.2012 in ITA No.22 & 24/2012. CIT v. Toyota Kirloskar Motor P Ltd. 349 ITR 65 (Kar) CIT v. IBM India Ltd. 357 ITR 88 (Kar) 38. We have heard both the parties. The Hon’ble Supreme Court in Empire Jute Co. Ltd. v. CIT, 124 ITR 1 (SC) at page 10 held as follows:- “ …… There may be cases where expenditure, even if incurred for obtaining advantage of enduring benefit, may, none the less, be on revenue account and the test of e…