CIT v. TVS Motors Ltd.

364 ITR 1High Court2014#5374 most cited

What is CIT v. TVS Motors Ltd. authority for?

The cost of dyes and moulds used in the manufacturing process is a revenue expenditure when they are for replacement and have a short life, facilitating the main production process without creating a new asset.

22

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. TVS Motors Ltd. · 364 ITR 1 · revenue expenditure · cost of dyes and moulds · replacement cost · manufacturing process · business expediency

Also reported as

112 Taxmann.com 167

Sections most often in play

Section 14ASection 143(3)Section 37(1)Section 115-OSection 115JBSection 154Section 2(24)(xviii)Section 2(47)

Issues it is cited on

section 14bsection 10(33)section 40a(7)wholly and exclusively for businesssection 28(iv)section 43b(b)section 36(2)going concernsection 36(1)(vii)business expediencysection 40(a)(i)section 80h

Judgments citing CIT v. TVS Motors Ltd.

DCIT, New Delhi vs. M/S. Gujarat Guardian Ltd., New Delhi

In the result, appeal filed by the revenue against the direction of the Ld

ITA 1106/DEL/2015[2010-11]Status: DisposedITAT Delhi16 Aug 2018AY 2010-11

Bench: Shri S.K.Yadav & Shri Prashant Maharishim/S. Guajarat Guardian Ltd, Vs. Dcit, 4-7/C, Dda Shopping Centre, Circle-12(1), (Now Circle- New Friends Colony, 10(2), New Delhi Cr Building, Ip Estate, Pan: Aaacg1622K New Delhi (Appellant) (Respondent) Dcit, Vs. M/S. Guajarat Guardian Ltd, Circle-12(1), (Now Circle-10(2), 4-7/C, Dda Shopping Cr Building, Ip Estate, Centre, New Delhi New Friends Colony, New Delhi Pan: Aaacg1622K (Appellant) (Respondent)

For Appellant: Shri Neeraj Jain, AdvFor Respondent: Smt Meeta Singh CIT DR
Section 144Section 144CSection 14A

…ay Co. Ltd vs. CIT 46 ITR 533 (Pat)  Rhodesia Railways vs. ITC 1 ITR 227 (PC)  Bansilal Abirchand vs. CIT 31 ITR 427 (Nag)  South Eastern Coalfields Ltd. vs. JCIT: 85 ITD 608 (Nag),  DCIT v. Eicher Motors Ltd.: 67 SOT 306 (Del – Trib)  CIT v. TVS Motors: 364 ITR 1 (HC)(Mad)  CIT vs. Sree Ayyanar Spinning and Weaving Mills Ltd.: 211 Taxmann 534 (SC)  CIT v. Shri Rama Sugar Mills: 21 ITR 191 (Mad.)  CIT v. Norinco (P.) Ltd.: ITA No. 622 of 2014 (Cal)  Super Spinning Mills Ltd. v. ACIT: 357 ITR 720 (Mad)  CIT v. Indian Woollen Textile Mills Pvt. Ltd.: 112 ITR 441 (P&H)  CIT v. Shree Hari Industries: 161 I…

Watertec (India) Private Limited, Coimbatore vs. DCIT, Coimbatore

In the result, the appeal of the assessee is allowed

ITA 134/CHNY/2016[2009-10]Status: DisposedITAT Chennai22 Apr 2016AY 2009-10

Bench: Shri N.R.S. Ganesan & Shri A. Mohan Alankamonyआयकर अपील सं./Ita No. 134/Mds/2016 "नधा"रण वष" / Assessment Year : 2009-10 M/S Watertec (India) Pvt. Ltd., The Deputy Commissioner Of (Formerly Watertec Systems V. Income Tax, (India) Private Limited), Corporate Circle – 1, Gopal Bagh, 1060, Avinashi Road, Coimbatore. Coimbatore – 641 018. Pan : Aaacw 1645 G (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Sh. R. Vijayaraghavan, AdvocateFor Respondent: Sh. A.B. Koli, JCIT
Section 148Section 31

…that these items form part of plant and machinery, therefore, it has to be capitalized and the Assessing Officer allowed only normal depreciation at the rate of 30%. Placing reliance on the judgment of Madras High Court in CIT v. TVS Motors Limited (2014) 364 ITR 1, the Ld.counsel submitted that dies and molds are only to replace the worn out dies and molds. Molds and dies are attached to the machinery like designs specification and they are not independent of plant and machinery. According to the Ld. counsel, molds and dies are part of machinery. Once the molds are worn out, the machinery cannot function…