DCIT v. Core Healthcare Ltd.

308 ITR 263High Court2009#3679 most cited

What is DCIT v. Core Healthcare Ltd. authority for?

Expenditure capitalized as tangible/know-how/brand development that is revenue in nature can be claimed as a revenue expense in a revised return, with depreciation claimed thereon being consequently reduced.

32

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2015 to 2022.

Also referred to as

DCIT v. Core Healthcare Ltd. · 308 ITR 263 · revenue expenditure · capitalized expenses · brand development · revised return · depreciation

Sections most often in play

Section 80-IAB
Read the full judgment

Judgments citing DCIT v. Core Healthcare Ltd.

Dredging Corporation of India Ltd, Visakhapatnam vs. DCIT, Circle -3(1), Visakhapatnam

In the result, the appeals of the assessee as well as the revenue are dismissed

ITA 437/VIZ/2017[2012-2013]Status: DisposedITAT Visakhapatnam05 Oct 2018AY 2012-2013

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.437/Viz/2017 (धििाारण िर्ा/ Assessment Year: 2012-2013) M/S Dredging Corporation Vs. Dcit Of India Ltd. Circle-3(1) Dredge House, Port Area Visakhapatnam Visakhapatnam [Pan : Aaacd6021B] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपील सं./I.T.A.No.464/Viz/2017 (धििाारण िर्ा/ Assessment Year: 2012-2013) Acit Vs. M/S Dredging Corporation Circle-3(1) Of India Ltd. Visakhapatnam Dredge House, Port Area Visakhapatnam [Pan : Aaacd6021B] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) निर्धाऩिती की ओि से/ Assessee By : Shri G.V.N.Hari, Ar िधजस्व की ओि से/ Revenue By : Shri Deba Kumar Sonowal, Dr सुिवधई की तधिीख / Date Of Hearing : 26.09.2018 05.10.2018 घोषणध की तधिीख/Date Of Pronouncement :

For Appellant: Shri G.V.N.Hari, ARFor Respondent: Shri Deba Kumar Sonowal, DR
Section 115VSection 5

…ome from the above receipts forms part of the income from the core activity of operating the qualifying ships. For ready reference, we reproduce Para No.9 of the ITAT’s order supra which reads as under: 9. In the case of Dy. CIT v. Core Healthcare Ltd. [2009] 308 ITR 263 (Guj.), the question whether the income generated from the sale of empty containers can be treated as income derived from industrial undertakings was raised before the High Court. The question was answered in affirmative and for the sake of convenience, we extract below the relevant head note: "Held that it was an accepted position that the empty…

The DCIT, Circle-1(1)(1), Ahmedabad vs. Aagam Infrabuild Pvt. Ltd., Ahmedabad

In the result, Revenue’s appeal stands dismissed

ITA 1762/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad25 May 2018AY 2012-13

Bench: Shri N.K. Billaiya & Ms. Madhumita Royआयकर अपील सं./I.T.A. No.1762/Ahd/2016 ("नधा"रण वष" / Assessment Year : 2012-13)

For Appellant: Shri V.K. Singh, Sr.DRFor Respondent: -None-

…आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ ‘डी’, अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “ D ” BENCH, AHMEDABAD सम" "ी एन.के."ब"लैया, लेखा सद"य एवं सु"ी मधु"मता रॉय, "या"यक सद"य । BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & Ms. MADHUMITA ROY, JUDICIAL MEMBER आयकर अपील सं./I.T.A. No.1762/Ahd/2016 ("नधा"रण वष" / Assessment Year : 2012-13) The DCIT Aagam Infrabuild Pvt.Ltd. बनाम/ Circle-1(1)(1) 9,Amul Society Vs. Ahmedabad Nr.Shardamandir Road Sukhipura, Paldi Ahmedabad "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAICA 8530 G .. (अपीलाथ" /Appellant) (""यथ" / Respondent) अपीलाथ" ओर से / Appellant by : Shri V.K…

M/S Flipkart India Private Limited, Bangalore vs. Assistant Commissioner of Income Tax Circle-3(1)(1), Bangalore

In the result, appeal by the Assessee is allowed and the appeal by the Revenue is dismissed

ITA 202/BANG/2018[2015-16]Status: DisposedITAT Bangalore25 Apr 2018AY 2015-16

Bench: Shri N.V Vasudevan & Shri Jason P Boaz

For Respondent: Shri C.H. Sundar Rao, CIT
Section 131

…decision of the Hon’ble Karnataka, Gujarat and Delhi High Courts in the following cases wherein a view has been taken that expenses incurred for developing brand is not capital expenditure: (i) (2013) 217 Taxman 95 (Karn.) CIT Vs. Indo Nissin Foods Ltd. (ii) 308 ITR 263 (Guj.) DCIT Vs. Core Healthcare Ltd. (iii) (2012) 210 Taxman 161 (Delhi)(Mag.) CIT Vs. Modi 30. It was also submitted by him that the test of enduring benefit was held by the Hon’ble Supreme Court in the case of Empire Jute Co.Ltd. 124 ITR 1(SC) to be not a conclusive test to determine whether an expenditure is capital or revenue. The facts of t…

The DCIT, (OSD), Circle-8, Ahmedabad vs. Zydus Infrastructure Pvt.Ltd., Ahmedabad

In the result, appeal of the Revenue is dismissed

ITA 1088/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad02 Feb 2018AY 2011-12

Bench: Shri Rajpal Yadav & Shri Pradip Kumar Kediaआयकर अपील सं./I.T.A. No.1088/Ahd/2015 ("नधा"रण वष" / Assessment Year: 2011-12)

For Appellant: Shri Jigar M. Patel, A.RFor Respondent: Shri Dinesh Singh, Sr. DR
Section 143(3)Section 80Section 80I

…e of scrap. It is noted that the income has been generated from sale of scrap of iron and steel which was used for infrastructure development. The appellant has relied on the decision of Hon'ble Gujarat High Court in the case of DCIT Vs. Core Healthcare Ltd. [308 ITR 263]. Considering the judgment of Hon'ble Gujarat High Court, I am of the opinion that sale of scrap of iron and steel which is generated from the activity of construction of the infrastructure facility should be Zydus Infrastructure Pvt. Ltd. vs. DCIT,Cir-4(1)(2) Asst.Year – 2011-12 treated as derived from the activity and, therefore, the appellant…

The ITO, Ward-8(4), Ahmedabad vs. Zydus Infrastructure Pvt.Ltd., Ahmedabad

In the result ground no. 3 (a) of Revenue is dismissed

ITA 2236/AHD/2014[2010-11]Status: DisposedITAT Ahmedabad27 Oct 2017AY 2010-11

Bench: Shri N.K. Billaiya & Shri Mahavir Prasad)

For Appellant: Shri K. Madhusudan, Sr. D.RFor Respondent: Shri Jigar M. Patel, A.R
Section 80Section 80A

…e of scrap. It is noted that the income has been generated from sale of scrap of iron and steel which was used for infrastructure development. The appellant has relied on the decision of Hon'ble Gujarat High Court in the case of DCIT Vs. Core Healthcare Ltd. [308 ITR 263]. Considering the judgment of Hon'ble Gujarat High Court, I am of the opinion that sale of scrap of iron and steel which is generated from the activity of construction of the infrastructure facility should be treated as derived from the activity and, therefore, the appellant is entitled for deduction on the same. The claim of deduction on profess…

ACIT, New Delhi vs. M/S. Globus Spirits Ltd., New Delhi

Appeal is dismissed

ITA 2585/DEL/2012[2008-09]Status: DisposedITAT Delhi27 Jun 2017AY 2008-09

Bench: Shri I. C. Sudhir & Shri O. P. Kant

For Appellant: Shri Anil Kumar Chopra, F.C.A.; &For Respondent: Shri Amrit Lal, Sr. D. R

…poration Ltd. 296 ITR 140 (Del) (iv) CIT Vs. Salora International Ltd., 308 ITR 199 (Del); (v) CIT Vs. Liberty Group Marketing Division 315 ITR 125 (P & H); (vi) Sony India Pvt. Ltd. Vs. DCIT 315 ITR 150 (AT) (Del.) (VII) CIT Vs. Core Health Care Ltd. 308 ITR 263 (Guj.) 4.3 On perusal of the orders of the authorities below, we find that though during the year the assessee had capitalized a sum of Rs.1,79,77,181/- under the head tangible / know-how and brand development in the books and had claimed depreciation thereon. However, after realizing that the expenses so capitalized are of Revenue in nature, t…

ACIT, New Delhi vs. M/S. Hitz Fm Radio India Pvt. Ltd., Delhi

In the result, appeal of the department is dismissed

ITA 4407/DEL/2014[2010-11]Status: DisposedITAT Delhi08 May 2017AY 2010-11

Bench: Sh. N. K. Saini, Am & Ms. Suchitra Kamble, Jm Ita No. 4407/Del/2014 : Asstt. Year : 2010-11 Acit, Vs Hitz Fm Radio India Pvt. Ltd., Circle-12(1), M-168, Lower Ground Floor, New Delhi Greater Kailash, Part-Ii, Delhi-110048 (Appellant) (Respondent) Pan No. Aaacch9041D Assessee By : Sh. Sanjiv Sapra, Fca & Sh. Amit, Fca Revenue By : Sh. Amit Lal, Sr. Dr Date Of Hearing : 08.05.2017 Date Of Pronouncement : 08.05.2017 Order Per N. K. Saini, Am: This Is An Appeal By The Department Against The Order Dated 29.05.2014 Of Ld. Cit(A)-Xv, New Delhi.

For Appellant: Sh. Sanjiv Sapra, FCA &For Respondent: Sh. Amit Lal, Sr. DR

…ated as Revenue in nature allowable fully in the year in which it was incurred. The assessee’s case is squarely covered by these judgments as well as the judgment of Gujrat High Court in case of DEPUTY COMMISSIONER OF INCOME-TAX v. CORE HEALTHCARE LTD. [2009] 308 ITR 263 (Guj) which held as under: “14. In relation to the first item, namely, advertisement expenses, it is not in dispute that the expenditure of Rs. 70 lakhs and odd was incurred on a special advertisement campaign. However, that by itself would not be sufficient to determine as to whether the expenditure in question is on revenue account or capital a…

DCIT, New Delhi vs. M/S. Mail Today Newspapers Pvt. Ltd., New Delhi

In the result appeal filed by the revenue stands dismissed

ITA 4252/DEL/2014[2010-11]Status: DisposedITAT Delhi27 Apr 2017AY 2010-11

Bench: Sh. N. K. Saini & Smt. Beena A. Pillaidcit Mail Today Newspapers Pvt. Ltd. A Circle-6(1), F- 26, Connaught Place New Delhi Vs. New Delhi Gir/Pan: Aafcm1533J (Appellant) (Respondent)

For Appellant: Ms. Rachna Singh, Sr. DRFor Respondent: Sh. Salil Aggarwal
Section 143(1)Section 143(2)

…ourt in the case of CIT vs. J.K Charitable Trust, reported in 308 ITR 161; 4 • Hon’ble Supreme Court in the case of Radhsoami Satsang versus CIT reported in 193 ITR 321; • Hon’ble Gujarat High Court in the case of DCIT versus core health care Ltd reported in 308 ITR 263 9. Ld. Counsel submitted that assessee has to incur these expenses to make an existence in market and therefore, it cannot be considered to be enduring nature. He submitted that these expenses are incurred every year by assessee. He relied upon certain decisions wherein tests has been laid down to establish three nature of an expenses. • Hon’ble…

A.C.I.T. Circle 6(1), Mumbai vs. Inx Media Pvt. Ltd., Mumbai

In the result, appeal of the Revenue is partly allowed

ITA 7216/MUM/2011[2008-09]Status: DisposedITAT Mumbai26 Apr 2017AY 2008-09

Bench: Shri D. Karunakara Rao & Shri Sandeep Gosainacit, Circle 6(1), फनाभ/ M/S. Inx Media Pvt Ltd., R.No.506, 5 Th Floor, 3Rd Floor, Inx House, Apsara Vs. Aayakar Bhavan, M.K. Road, Complex, Dr. Dadasaheb C Mumbai – 20. Bhadmarkar Marg, Grand Road (E), Mumbai – 400 007. स्थामी रेखा सं./ Pan : Aabc15594D (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. M/S. Inx Media Pvt Ltd., फनाभ/ Acit, Circle 6(1), 3Rd Floor, Inx House, Apsara R.No.506, 5 Th Floor, Vs. Complex, Dr. Dadasaheb C Aayakar Bhavan, M.K. Road, Bhadmarkar Marg, Grand Road Mumbai – 20. (E), Mumbai – 400 007. स्थामी रेखा सं./ Pan : Aabc15594D (अऩीराथी /Appellant) (प्रत्मथी / Respondent) ..

For Appellant: Shri Vijay MehtaFor Respondent: Shri Shishir Dhamija, CIT-DR
Section 32Section 68

…nguishable on facts (para 5.5 and 5-11 of order of FAA). Further, FAA held that the said expenditure for brand building / brand image is an allowable deduction. In this regard, Ld FAA relied on the Gujrat High Court judgment in case of M/s Core Healthcare Ltd 308 ITR 263 and orders of the Tribunal in case of M/s Godrej Tea Ltd (supra) and Spice Communications Ltd, Reliance Jute Ltd, British Electrical Pumps Pvt. Ltd etc. Contents are para 5.16 of FAA‟s order are relevant. Thus, the FAA deleted the entire addition of Rs. 58,65,13,438/-. 16. Before us, on this issue, Ld. DR for the revenue relied heavily on the or…

Quantium Advisors P. Ltd, Mumbai vs. DCIT Cir 1(3), Mumbai

Appeal of the assessee is allowed

ITA 3418/MUM/2015[2011-12]Status: DisposedITAT Mumbai15 Jul 2016AY 2011-12

Bench: Shri G.S.Pannu & Shri Pawan Singhquantum Advisors Pvt. Ltd., 503, Regent Chamber, Nariman Point, Mumbai 400 021. Pan:Aaacq 0281C ... Appellant Vs.

For Appellant: S/Shri J.D.Mistry/Niraj D. SethFor Respondent: Shri Amit Kumar Singh
Section 143(3)Section 37(1)

…thline (P) Ltd. [2012] 19 ITR(T) 298 15 ii) ITO v/s Spice Communications Ltd. [2010] 35 SOT 78 iii) JCIT v/s ITC Ltd. [2008] 112 ITD 57 Further, reliance was also placed on the judgment of the Hon'ble Gujarat High Court in the case of Core Healthcare Ltd., 308 ITR 263 and that of Hon'ble Delhi High Court in the case of Modi Revlon Pvt. Ltd., 26 taxmann.com 133 for the proposition that even advertisement expenses incurred to create a brand image was allowable as revenue expenditure. The CIT(A) considered the exhaustive submissions made by the assessee and called for a Remand report from the Assessing Officer on…

M/S Reckitt Benckiser (I) Ltd., Kolkata vs. JCIT, R-12, Kolkata

In the result, both the appeals of the assessee are partly allowed while both the appeals of the revenue are dismissed

ITA 1671/KOL/2008[2003-2004]Status: DisposedITAT Kolkata25 May 2016AY 2003-2004

Bench: Shri P.M. Jagtap & Shri S.S. Viswanethra Ravi

Section 40

…ld. counsel for the assessee relied on the decision of the Ahmedabad Special Bench of ITAT in the case of ACIT –vs.- Ashima Syntex Limited reported in 170 ITD 1 and the Hon’ble Gujarat High Court in the case of DCIT –vs.- Core Health Care Limited reported in 308 ITR 263. 22. The ld. D.R., on the other hand, submitted that the matching principle should be applied while allowing the expenditure incurred by the assessee on the production of films and since the benefit of such expenditure was partly available to the assessee in the subsequent year, the disallowance made by the Assessing Officer and confirmed by the…

DCIT, New Delhi vs. M/S Dlf Homes Panchkula Pvt. Ltd., New Delhi

In the result appeal of the department is dismissed

ITA 4344/DEL/2012[2009-10]Status: DisposedITAT Delhi14 Oct 2015AY 2009-10

Bench: Sh. N. K. Saini, Am & Sh. C. M. Garg, Jm Ita No. 4344/Del/2012 : Asstt. Year : 2009-10 Dcit, Vs M/S Dlf Homes Panchkula Pvt. Ltd. Circle-10(1), 1-E, Naaz Cinema Complex, New Delhi Jhandewalan Extn., New Delhi (Appellant) (Respondent) Pan No. Aabch8735M Assessee By : Sh. R. S. Singvi, Ca Revenue By: Smt. Parwinder Kaur, Sr. Dr Date Of Hearing : 31.07.2015 Date Of Pronouncement : 14.10.2015 Order Per N.K. Saini, A.M. This Is An Appeal By The Department Against The Order Dated 24.05.2012 Of The Ld. Cit(A)-Xiii, New Delhi.

For Appellant: Sh. R. S. Singvi, CAFor Respondent: Smt. Parwinder Kaur, Sr. DR
Section 4Section 5A

…ess and are allowable as revenue expenditure.” 5. The reliance was placed on the following case laws: " CIT Vs Modi Olivetti Ltd. 84 TTJ 1038 (Del) 7 DLF Homes Panchkula Pvt. Ltd. " CIT Vs Berger Paints (India) Ltd. 254 ITR 503 " DCIT Vs Core Healthcare Ltd. 308 ITR 263 " CIT Vs Salora International Ltd. 308 ITR 199 " CIT Vs Aluminium Industries Ltd. 234/214 ITR 541 (Ker) " Empire Jute Co. Ltd. Vs CIT 124 ITR 1 (SC) " CIT Vs Citi Financial Consumer Finance Ltd. 2011 335 ITR 29 (Del) 6. It was further submitted that there is a distinction between setting up of the business and the commencement of the business and…