Climate Systems India Ltd. v. CIT

M/S. Botil Oil Tools (India) Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, all the appeals of the assessee are allowed

Bench: Shri G.D. Agrawalbefore Shri G.D. Agrawal & And Before Shri Before Shri G.D. Agrawalg.D. Agrawal & And Shri Sudhanshu Srivastava Shri Sudhanshu Srivastavashri Sudhanshu Srivastava Shri Sudhanshu Srivastava

…Assessing Officer was not justified in disallowing 25% of the royalty. In support of this contention, he relied upon the following decisions:- (i) CIT Vs. J.K. Synthetics Limited – [2009] 309 ITR 371 (Delhi). (ii) Climate Systems India Ltd. Vs. CIT – [2009] 319 ITR 113 (Delhi). (iii) Alembic Chemical Works Co.Ltd. Vs. CIT, Gujarat – [1989] 177 ITR 377 (SC). 7. The learned counsel further submitted that the royalty is being paid by the assessee from assessment year 2004-05 onwards and, in the preceding two years, though the assessment was completed u/s 143(3), the payment of royalty was not disallowed. Thus, wh…

M/S. Botil Oil Tools (India) Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, all the appeals of the assessee are allowed

Bench: Shri G.D. Agrawalbefore Shri G.D. Agrawal & And Before Shri Before Shri G.D. Agrawalg.D. Agrawal & And Shri Sudhanshu Srivastava Shri Sudhanshu Srivastavashri Sudhanshu Srivastava Shri Sudhanshu Srivastava

…Assessing Officer was not justified in disallowing 25% of the royalty. In support of this contention, he relied upon the following decisions:- (i) CIT Vs. J.K. Synthetics Limited – [2009] 309 ITR 371 (Delhi). (ii) Climate Systems India Ltd. Vs. CIT – [2009] 319 ITR 113 (Delhi). (iii) Alembic Chemical Works Co.Ltd. Vs. CIT, Gujarat – [1989] 177 ITR 377 (SC). 7. The learned counsel further submitted that the royalty is being paid by the assessee from assessment year 2004-05 onwards and, in the preceding two years, though the assessment was completed u/s 143(3), the payment of royalty was not disallowed. Thus, wh…

M/S. Lumax Industries Ltd., New Delhi vs. DCIT, New Delhi

In the result appeal of the assessee is partly allowed

Bench: Shri Rajpal Yadav & Shri Prashant Maharishilumax Industries Ltd., Dcit, B-85/86, Mayapuri Industrial Area, Circle-4(1), Vs. Phase-1, New Delhi New Delhi Pan:Aadcr6902J (Appellant) (Respondent)

…tment:- 1. „Sona Okegawa Precision Forgings Ltd. vs. ACIT‟ (ITANo.4781/Del/2010) 2. „ACIT vs. Sona Okegawa Precision Forgings Ltd.‟ (ITANo.260/Del/2010. 3. „CIT vs. Federal Mogul TPR India Ltd.‟ (ITA No.398/2012) 4. „Climate Systems India Ltd. vs. CIT‟ (2009) 319 ITR 113(Delhi) 5. „CIT vs. Eicher Motors Ltd.‟ (2007) 293 ITR 464 (MP) 6. „Praga Tools Ltd. vs. CIT‟ (1980) 123 ITR 773 (A&P) 7. „Ekl Appliances (2012-TII-01-HC-DEL-TP) 8. „Ericsson India Pvt. Ltd. vs. DCIT‟ (2012-TII-48-ITAT-Del-TP) 16 ITA No.4456/Del/2012 24. In „„Sona Okegawa Precision Forgings Ltd.‟ (supra), it has beenheld that since the royalty pai…

Commissioner of Income Tax-IV vs. Hero Honda Motors Limited

…ITA 694, 696, 698, 699/2011 & 625, 633/2012 Page 1 of 20 * IN THE HIGH COURT OF DELHI AT NEW DELHI + INCOME TAX APPEAL NOS. 694/2011, 696/2011, 698/2011, 699/2011, 625/2012 & 633/2012 Reserved on : 10th November, 2014 Date of decision: 3rd February, 2015 COMMISSIONER OF INCOME TAX-IV ..... Appellant Through Mr. Rohit Madan, Mr. P. Roy Chaudhury & Mr. Ruchir Bhatia, Advocates. versus HERO HONDA MOTORS LIMITED .....Respondent Through Mr. Ajay Vohra, Sr. Advocate with Ms. Kav…

Commissioner of Income Tax vs. Bharti Hexacom Ltd

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

…urring personal debts. The concept of capital maintenance was critical in distinguishing whedier the expenditure was for capital or revenue purposes. Reference can also be made to the decision of Delhi High Court in CIT vs. Sharda Motors Industry Ltd, (2009) .319 ITR 109 (Del). ITA 1336/2010 & coan, cases. Page 29 29. When we turn to the facts of the present ease, the following position emerges; i. The licence was issued under a statutory mandate and was required and acquired, before the commencement of.operations or business, to establish, and also to maintain and operate cellular telephone services. ii. The l…

CIT vs. Bharti Hexacom Limited

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

…urring personal debts. The concept of capital maintenance was critical in distinguishing whedier the expenditure was for capital or revenue purposes. Reference can also be made to the decision of Delhi High Court in CIT vs. Sharda Motors Industry Ltd, (2009) .319 ITR 109 (Del). ITA 1336/2010 & coan, cases. Page 29 29. When we turn to the facts of the present ease, the following position emerges; i. The licence was issued under a statutory mandate and was required and acquired, before the commencement of.operations or business, to establish, and also to maintain and operate cellular telephone services. ii. The l…

Commissioner of Income Tax vs. Bharti Telenet Ltd

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

…urring personal debts. The concept of capital maintenance was critical in distinguishing whedier the expenditure was for capital or revenue purposes. Reference can also be made to the decision of Delhi High Court in CIT vs. Sharda Motors Industry Ltd, (2009) .319 ITR 109 (Del). ITA 1336/2010 & coan, cases. Page 29 29. When we turn to the facts of the present ease, the following position emerges; i. The licence was issued under a statutory mandate and was required and acquired, before the commencement of.operations or business, to establish, and also to maintain and operate cellular telephone services. ii. The l…

CIT vs. Bhartihexacom Ltd

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

…urring personal debts. The concept of capital maintenance was critical in distinguishing whedier the expenditure was for capital or revenue purposes. Reference can also be made to the decision of Delhi High Court in CIT vs. Sharda Motors Industry Ltd, (2009) .319 ITR 109 (Del). ITA 1336/2010 & coan, cases. Page 29 29. When we turn to the facts of the present ease, the following position emerges; i. The licence was issued under a statutory mandate and was required and acquired, before the commencement of.operations or business, to establish, and also to maintain and operate cellular telephone services. ii. The l…

CIT vs. Bharti Airtel Ltd

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

…urring personal debts. The concept of capital maintenance was critical in distinguishing whedier the expenditure was for capital or revenue purposes. Reference can also be made to the decision of Delhi High Court in CIT vs. Sharda Motors Industry Ltd, (2009) .319 ITR 109 (Del). ITA 1336/2010 & coan, cases. Page 29 29. When we turn to the facts of the present ease, the following position emerges; i. The licence was issued under a statutory mandate and was required and acquired, before the commencement of.operations or business, to establish, and also to maintain and operate cellular telephone services. ii. The l…

Commissioner of Income Tax vs. Bharti Hexacom Ltd

…urring personal debts. The concept of capital maintenance was critical in distinguishing whedier the expenditure was for capital or revenue purposes. Reference can also be made to the decision of Delhi High Court in CIT vs. Sharda Motors Industry Ltd, (2009) .319 ITR 109 (Del). ITA 1336/2010 & coan, cases. Page 29 2013:DHC:7816-DB 29. When we turn to the facts of the present ease, the following position emerges; i. The licence was issued under a statutory mandate and was required and acquired, before the commencement of.operations or business, to establish, and also to maintain and operate cellular telephone se…

CIT vs. Bharti Cellular Ltd

…urring personal debts. The concept of capital maintenance was critical in distinguishing whedier the expenditure was for capital or revenue purposes. Reference can also be made to the decision of Delhi High Court in CIT vs. Sharda Motors Industry Ltd, (2009) .319 ITR 109 (Del). ITA 1336/2010 & coan, cases. Page 29 2013:DHC:7816-DB 29. When we turn to the facts of the present ease, the following position emerges; i. The licence was issued under a statutory mandate and was required and acquired, before the commencement of.operations or business, to establish, and also to maintain and operate cellular telephone se…

Commissioner of Income Tax vs. Bharti Hexacom Ltd

…personal debts. The concept of capital maintenance was critical in distinguishing whether the expenditure was for capital or revenue purposes. Reference can also be made to the decision of Delhi High Court in CIT vs. Sharda Motors Industry Ltd. (2009) 319 ITR 109 (Del.). 2013:DHC:6537-DB ITA 1336/2010 & conn. cases. Page 30 of 46 29. When we turn to the facts of the present case, the following position emerges: i. The licence was issued under a statutory mandate and was required and acquired, before the commencement of oper…

CIT vs. Bharti Cellular Ltd

…urring personal debts. The concept of capital maintenance was critical in distinguishing whedier the expenditure was for capital or revenue purposes. Reference can also be made to the decision of Delhi High Court in CIT vs. Sharda Motors Industry Ltd, (2009) .319 ITR 109 (Del). ITA 1336/2010 & coan, cases. Page 29 2013:DHC:7816-DB 29. When we turn to the facts of the present ease, the following position emerges; i. The licence was issued under a statutory mandate and was required and acquired, before the commencement of.operations or business, to establish, and also to maintain and operate cellular telephone se…

Oracle Software India Ltd vs. Commissioner of Income Tax Del

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

…ture was capital in nature. Reference was made to CIT v. J.K. Synthetics Ltd. (2009) 309 ITR 371 (Del) where broad principles have been culled out and some of the principles have been set out in seritum. Decision in CIT V. Sharda Motors Industrial Ltd. (2009) 319 ITR 109 (Del) was also referred too. 33. The question of law mentioned above is accordingly answered in favour ofthe appellant-assessee and against the Revenue. 34. In the assessment year 1997- 98, in ITA No. 390/2007 titled Orcale India Softwares Ltd vs. CIT Delhi, two additional questions have been raised, which read as under "(2) Wliether the Assessin…

Oracle India Pvt. Ltd vs. Commissioner of Income Tax, Delhi

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

…ture was capital in nature. Reference was made to CIT v. J.K. Synthetics Ltd. (2009) 309 ITR 371 (Del) where broad principles have been culled out and some of the principles have been set out in seritum. Decision in CIT V. Sharda Motors Industrial Ltd. (2009) 319 ITR 109 (Del) was also referred too. 33. The question of law mentioned above is accordingly answered in favour ofthe appellant-assessee and against the Revenue. 34. In the assessment year 1997- 98, in ITA No. 390/2007 titled Orcale India Softwares Ltd vs. CIT Delhi, two additional questions have been raised, which read as under "(2) Wliether the Assessin…

Oracle Software India Ltd vs. Commissioner of Income Tax Del

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

…ture was capital in nature. Reference was made to CIT v. J.K. Synthetics Ltd. (2009) 309 ITR 371 (Del) where broad principles have been culled out and some of the principles have been set out in seritum. Decision in CIT V. Sharda Motors Industrial Ltd. (2009) 319 ITR 109 (Del) was also referred too. 33. The question of law mentioned above is accordingly answered in favour ofthe appellant-assessee and against the Revenue. 34. In the assessment year 1997- 98, in ITA No. 390/2007 titled Orcale India Softwares Ltd vs. CIT Delhi, two additional questions have been raised, which read as under "(2) Wliether the Assessin…

Oracle India P.Ltd vs. Commissioner of Income Tax Delhi

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

…ture was capital in nature. Reference was made to CIT v. J.K. Synthetics Ltd. (2009) 309 ITR 371 (Del) where broad principles have been culled out and some of the principles have been set out in seritum. Decision in CIT V. Sharda Motors Industrial Ltd. (2009) 319 ITR 109 (Del) was also referred too. 33. The question of law mentioned above is accordingly answered in favour ofthe appellant-assessee and against the Revenue. 34. In the assessment year 1997- 98, in ITA No. 390/2007 titled Orcale India Softwares Ltd vs. CIT Delhi, two additional questions have been raised, which read as under "(2) Wliether the Assessin…

Oracle India P.Ltd vs. Commissioner of Income Tax

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

…ture was capital in nature. Reference was made to CIT v. J.K. Synthetics Ltd. (2009) 309 ITR 371 (Del) where broad principles have been culled out and some of the principles have been set out in seritum. Decision in CIT V. Sharda Motors Industrial Ltd. (2009) 319 ITR 109 (Del) was also referred too. 33. The question of law mentioned above is accordingly answered in favour ofthe appellant-assessee and against the Revenue. 34. In the assessment year 1997- 98, in ITA No. 390/2007 titled Orcale India Softwares Ltd vs. CIT Delhi, two additional questions have been raised, which read as under "(2) Wliether the Assessin…

Oracle Software India Ltd vs. Commissioner of Income Tax

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

…ture was capital in nature. Reference was made to CIT v. J.K. Synthetics Ltd. (2009) 309 ITR 371 (Del) where broad principles have been culled out and some of the principles have been set out in seritum. Decision in CIT V. Sharda Motors Industrial Ltd. (2009) 319 ITR 109 (Del) was also referred too. 33. The question of law mentioned above is accordingly answered in favour ofthe appellant-assessee and against the Revenue. 34. In the assessment year 1997- 98, in ITA No. 390/2007 titled Orcale India Softwares Ltd vs. CIT Delhi, two additional questions have been raised, which read as under "(2) Wliether the Assessin…

Oracle India Pvt. Ltd vs. Commissioner of Income Tax, Delhi

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

…ture was capital in nature. Reference was made to CIT v. J.K. Synthetics Ltd. (2009) 309 ITR 371 (Del) where broad principles have been culled out and some of the principles have been set out in seritum. Decision in CIT V. Sharda Motors Industrial Ltd. (2009) 319 ITR 109 (Del) was also referred too. 33. The question of law mentioned above is accordingly answered in favour ofthe appellant-assessee and against the Revenue. 34. In the assessment year 1997- 98, in ITA No. 390/2007 titled Orcale India Softwares Ltd vs. CIT Delhi, two additional questions have been raised, which read as under "(2) Wliether the Assessin…