Empire Jute Co. Ltd. v. CIT

124 ITR 1Supreme Court of India1980#95 most cited

What is Empire Jute Co. Ltd. v. CIT authority for?

Expenditure is classified as revenue or capital based on its practical business effect, necessity, or expediency, rather than solely on the juristic classification of rights; an enduring benefit does not automatically make an expenditure capital if it facilitates trading operations or business efficiency.

622

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2008 to 2026.

Also referred to as

Empire Jute Co. Ltd. v. CIT · Section 37(1) · Section 37 · revenue expenditure · capital expenditure · enduring benefit test · test of enduring benefit not conclusive · business necessity · commercial expediency · practical business point of view · facilitation of trading operations · business efficiency

Also reported as

3 Taxmann 69

Sections most often in play

Section 143(3)Section 37(1)Section 37Section 14ASection 271(1)(c)Section 234ASection 234BSection 115P

Issues it is cited on

test of enduring benefitenduring benefitrevenue expenditurecapital expenditurecomputer softwaresection 35commercial expediencysection 37section 37(1)section 80isection 40(a)disallowance u/s 14a

Judgments citing Empire Jute Co. Ltd. v. CIT

Asst. Commissioner of Income Tax, Mumbai vs. Reliance Retail Limited, Mumbai

In the result, the appeal filed by the Revenue is dismissed, whereas the appeal filed by the assessee is partly allowed

ITA 4244/MUM/2025[2019-20]Status: DisposedITAT Mumbai10 Mar 2026AY 2019-20

Bench: SHRI SAKTIJIT DEY (Vice President), SHRI MAKARAND VASANT MAHADEOKAR (Accountant Member)

Section 135Section 143(3)Section 144BSection 14ASection 250Section 37(1)Section 80GSection 80JSection 92C

…e assessee contended that the expenditure was incurred wholly and exclusively for the purposes of business and did not result in acquisition of any capital asset. Reliance was placed on the decision of the Hon’ble Supreme Court in Empire Jute Co. Ltd. v. CIT (124 ITR 1) for the proposition that expenditure incurred for facilitating business operations without creating a capital asset is allowable as revenue expenditure. 56. Further reliance was placed on the following decisions:  CIT v. Bhor Industries Ltd. (264 ITR 180) (Bom.)  CIT v. Salgaocar Mining Industries Pvt. Ltd. (108 taxmann.com 116) (Bom.)  Kellogg…

Reliance Retail Limited, Mumbai vs. Assistant Commissioner of Income Tax Circle 8(1)(1), Mumbai

ITA 3510/MUM/2025[2019-20]Status: DisposedITAT Mumbai10 Mar 2026AY 2019-20

Bench: Shri Saktijit Dey & Shri Makarand Vasant Mahadeokar

Section 135Section 143(3)Section 144BSection 14ASection 250Section 37(1)Section 80GSection 80JSection 92C

…e assessee contended that the expenditure was incurred wholly and exclusively for the purposes of business and did not result in acquisition of any capital asset. Reliance was placed on the decision of the Hon'ble Supreme Court in Empire Jute Co. Ltd. v. CIT (124 ITR 1) for the proposition that expenditure incurred for facilitating business operations without creating a capital asset is allowable as revenue expenditure. 56. Further reliance was placed on the following decisions: • CIT v. Bhor Industries Ltd. (264 ITR 180) (Bom.) • CIT v. Salgaocar Mining Industries Pvt. Ltd. (108 taxmann.com 116) (Bom.) • Kellogg…

Nuziveedu Swathi Coastal Consortium, Hyderabad vs. ACIT., Circle-6(1), Hyderabad

In the result, the appeal filed by the assessee is allowed

ITA 1340/HYD/2025[2018-19]Status: DisposedITAT Hyderabad09 Jan 2026AY 2018-19

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: Shri A.V. Raghuram, AdvocateFor Respondent: Smt. U. Mini Chandran, CIT-DR
Section 143(3)

…आयकर अपीलीय अधिकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘A’ Bench, Hyderabad श्री विजय पाल राि, उपाध् यक्ष एंव श्री मंजूनाथा जी, लेखा सदस् य के समक्ष । BEFORE SHRI VIJAY PAL RAO, VICE PRESIDENT AND SHRI MANJUNATHA G, ACCOUNTANT MEMBER आ.अपी.सं /ITA Nos.1336 to 1340/Hyd/2025 (निर्धारण वर्ा/Assessment Years : 2013-14 to 2015-16, 2017-18 & 2018-19) M/s. Nuziveedu Swathi Coastal Asst. Commissioner of Income Vs. Consortium, Hyderabad. Tax, PAN: AAAAN3839R Circle 6(1), Hyderabad. (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee by: Shri A.V. Raghuram, Advocate. रधजस् व द्वधरध/Revenue by:…

Nuziveedu Swathi Coastal Consortium, Hyderabad vs. ACIT., Circle-6(1), Hyderabad

In the result, the appeal filed by the assessee is allowed

ITA 1339/HYD/2025[2017-18]Status: DisposedITAT Hyderabad09 Jan 2026AY 2017-18

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: Shri A.V. Raghuram, AdvocateFor Respondent: Smt. U. Mini Chandran, CIT-DR
Section 143(3)

…आयकर अपीलीय अधिकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘A’ Bench, Hyderabad श्री विजय पाल राि, उपाध् यक्ष एंव श्री मंजूनाथा जी, लेखा सदस् य के समक्ष । BEFORE SHRI VIJAY PAL RAO, VICE PRESIDENT AND SHRI MANJUNATHA G, ACCOUNTANT MEMBER आ.अपी.सं /ITA Nos.1336 to 1340/Hyd/2025 (निर्धारण वर्ा/Assessment Years : 2013-14 to 2015-16, 2017-18 & 2018-19) M/s. Nuziveedu Swathi Coastal Asst. Commissioner of Income Vs. Consortium, Hyderabad. Tax, PAN: AAAAN3839R Circle 6(1), Hyderabad. (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee by: Shri A.V. Raghuram, Advocate. रधजस् व द्वधरध/Revenue by:…

Nuziveedu Swathi Coastal Consortium, Hyderabad vs. ACIT., Circle-6(1), Hyderabad

In the result, the appeal filed by the assessee is allowed

ITA 1338/HYD/2025[2015-16]Status: DisposedITAT Hyderabad09 Jan 2026AY 2015-16

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: Shri A.V. Raghuram, AdvocateFor Respondent: Smt. U. Mini Chandran, CIT-DR
Section 143(3)

…आयकर अपीलीय अधिकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘A’ Bench, Hyderabad श्री विजय पाल राि, उपाध् यक्ष एंव श्री मंजूनाथा जी, लेखा सदस् य के समक्ष । BEFORE SHRI VIJAY PAL RAO, VICE PRESIDENT AND SHRI MANJUNATHA G, ACCOUNTANT MEMBER आ.अपी.सं /ITA Nos.1336 to 1340/Hyd/2025 (निर्धारण वर्ा/Assessment Years : 2013-14 to 2015-16, 2017-18 & 2018-19) M/s. Nuziveedu Swathi Coastal Asst. Commissioner of Income Vs. Consortium, Hyderabad. Tax, PAN: AAAAN3839R Circle 6(1), Hyderabad. (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee by: Shri A.V. Raghuram, Advocate. रधजस् व द्वधरध/Revenue by:…

Nuziveedu Swathi Coastal Consortium, Hyderabad vs. ACIT., Circle-6(1), Hyderabad

In the result, the appeal filed by the assessee is allowed

ITA 1337/HYD/2025[2014-15]Status: DisposedITAT Hyderabad09 Jan 2026AY 2014-15

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: Shri A.V. Raghuram, AdvocateFor Respondent: Smt. U. Mini Chandran, CIT-DR
Section 143(3)

…आयकर अपीलीय अधिकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘A’ Bench, Hyderabad श्री विजय पाल राि, उपाध् यक्ष एंव श्री मंजूनाथा जी, लेखा सदस् य के समक्ष । BEFORE SHRI VIJAY PAL RAO, VICE PRESIDENT AND SHRI MANJUNATHA G, ACCOUNTANT MEMBER आ.अपी.सं /ITA Nos.1336 to 1340/Hyd/2025 (निर्धारण वर्ा/Assessment Years : 2013-14 to 2015-16, 2017-18 & 2018-19) M/s. Nuziveedu Swathi Coastal Asst. Commissioner of Income Vs. Consortium, Hyderabad. Tax, PAN: AAAAN3839R Circle 6(1), Hyderabad. (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee by: Shri A.V. Raghuram, Advocate. रधजस् व द्वधरध/Revenue by:…

Nuziveedu Swathi Coastal Consortium, Hyderabad vs. ACIT., Circle-6(1), Hyderabad

In the result, the appeal filed by the assessee is allowed

ITA 1336/HYD/2025[2013-14]Status: DisposedITAT Hyderabad09 Jan 2026AY 2013-14

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: Shri A.V. Raghuram, AdvocateFor Respondent: Smt. U. Mini Chandran, CIT-DR
Section 143(3)

…आयकर अपीलीय अधिकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘A’ Bench, Hyderabad श्री विजय पाल राि, उपाध् यक्ष एंव श्री मंजूनाथा जी, लेखा सदस् य के समक्ष । BEFORE SHRI VIJAY PAL RAO, VICE PRESIDENT AND SHRI MANJUNATHA G, ACCOUNTANT MEMBER आ.अपी.सं /ITA Nos.1336 to 1340/Hyd/2025 (निर्धारण वर्ा/Assessment Years : 2013-14 to 2015-16, 2017-18 & 2018-19) M/s. Nuziveedu Swathi Coastal Asst. Commissioner of Income Vs. Consortium, Hyderabad. Tax, PAN: AAAAN3839R Circle 6(1), Hyderabad. (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee by: Shri A.V. Raghuram, Advocate. रधजस् व द्वधरध/Revenue by:…

Westcourt Hospitality Pvt Ltd, New Delhi vs. DCIT, Circle-25(1), Delhi

In the result appeal of the assessee is allowed

ITA 3351/DEL/2025[2018-19]Status: DisposedITAT Delhi30 Dec 2025AY 2018-19

Bench: Shri Sudhir Kumar & Shri Manish Agarwal[Assessment Year: 2018-19] Acit, Circle 25(1), Room Vs M/S. Westcourt Hospitality No. 192A, Cr Building, Pvt. Ltd. Ip Estate New-Delhi. 4391, B-5 & 6, Vasant Kunj, 110002 New Delhi-110070. Pan-Aaacw8734G Appellant Respondent [Assessment Year: 2018-19] M/S. Westcourt Hospitality Vs Acit, Circle 25(1),Room Pvt. Ltd. No. 192A, Cr Building, Ip 4391, B-5 & 6, Vasant Estate New-Delhi. 110002 Kunj, New Delhi-110070. Pan-Aaacw8734G Appellant Respondent

Section 142(1)Section 143(2)Section 143(3)Section 250Section 68

…ects and purposes of the assessee can be treated as business expenditure so long as the connection between the expenditure incurred and the objects is real and not remote or illusory.” 30. The hon’ble Surpeme court in the case of Empire Jute Co. Ltd. vii. CIT 124 ITR 1 (SC) has held as under: What is an outgoing of capital and what is an outgoing on account of revenue depends on what the expenditure is calculated to effect from a practical and business point of view rather than upon the juristic classification of the legal rights, if any, secured, employed or exhausted in the process. The question must be viewed…

Assistant Commissioner of Income Tax, Circle-25(1), New Delhi vs. Westcourt Hospitality Private Limited, New Delhi

In the result appeal of the assessee is allowed

ITA 3294/DEL/2025[2018-19]Status: DisposedITAT Delhi30 Dec 2025AY 2018-19

Bench: Shri Sudhir Kumar & Shri Manish Agarwal[Assessment Year: 2018-19] Acit, Circle 25(1), Room Vs M/S. Westcourt Hospitality No. 192A, Cr Building, Pvt. Ltd. Ip Estate New-Delhi. 4391, B-5 & 6, Vasant Kunj, 110002 New Delhi-110070. Pan-Aaacw8734G Appellant Respondent [Assessment Year: 2018-19] M/S. Westcourt Hospitality Vs Acit, Circle 25(1),Room Pvt. Ltd. No. 192A, Cr Building, Ip 4391, B-5 & 6, Vasant Estate New-Delhi. 110002 Kunj, New Delhi-110070. Pan-Aaacw8734G Appellant Respondent

Section 142(1)Section 143(2)Section 143(3)Section 250Section 68

…ects and purposes of the assessee can be treated as business expenditure so long as the connection between the expenditure incurred and the objects is real and not remote or illusory.” 30. The hon’ble Surpeme court in the case of Empire Jute Co. Ltd. vii. CIT 124 ITR 1 (SC) has held as under: What is an outgoing of capital and what is an outgoing on account of revenue depends on what the expenditure is calculated to effect from a practical and business point of view rather than upon the juristic classification of the legal rights, if any, secured, employed or exhausted in the process. The question must be viewed…

Sharp Business System Thr. Finance Director Mr. Yoshihisa Mizuno vs. Commissioner of Income Tax-III N.D

The appeals are hereby disposed of in terms of

C.A. No.-004072-004072 - 2014Supreme Court19 Dec 2025

Bench: HON'BLE MR. JUSTICE MANOJ MISRA

Section 32(1)(ii)

…, such an expenditure should be allowed as a deduction. 12.3. He has referred to the decision of this Court in Empire Jute Company Limited Vs. Commissioner of Income Tax1 where it has been held that in certain situations or circumstances, the 1 (1980) 124 ITR 1 23 test of enduring benefit may fail. In fact, learned senior counsel submits that the test of enduring benefit may not be applicable universally to determine the character of the expenditure. Even when such an expenditure results in a benefit of enduring nature, that by itself would not be conclusive to regard or treat the expenditure…

Bharti Telemedia Limited, New Delhi vs. DCIT, Circle-4(2), New Delhi

In the result, the appeals of the Assessee are allowed and appeals of the Revenue are dismissed

ITA 624/DEL/2024[2021-22]Status: DisposedITAT Delhi12 Dec 2025AY 2021-22

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 35ASection 4

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘A’: NEW DELHI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER & SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No.4960 & 624/Del/2024 [Assessment Year: 2020-21 & 2021-22] Bharti Telemedia Ltd. DCIT Bharti Crescent 1, Nelson Circle 4 (2) Mandela Road, Vasant Kunj, Vs New Delhi Phase-II, New Delhi-110070 PAN No.AADCB0147R Appellant Respondent ITA No.4966 & 4868/Del/2024 [Assessment Year: 2020-21 & 2016-17] DCIT Bharti Telemedia Ltd. Circle 4 (2) Bharti Crescent 1, Nelson New Delhi Vs Mandela Road, Vasant Kunj, Phase-II, New Delhi-110070 PAN No.AADCB0147R Appellant Responde…

DCIT, Circle 4(2), New Delhi vs. M/S Bharti Telemedia Ltd, New Delhi

In the result, the appeals of the Assessee are allowed and appeals of the Revenue are dismissed

ITA 4966/DEL/2024[2020-21]Status: DisposedITAT Delhi12 Dec 2025AY 2020-21

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 35ASection 4

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘A’: NEW DELHI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER & SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No.4960 & 624/Del/2024 [Assessment Year: 2020-21 & 2021-22] Bharti Telemedia Ltd. DCIT Bharti Crescent 1, Nelson Circle 4 (2) Mandela Road, Vasant Kunj, Vs New Delhi Phase-II, New Delhi-110070 PAN No.AADCB0147R Appellant Respondent ITA No.4966 & 4868/Del/2024 [Assessment Year: 2020-21 & 2016-17] DCIT Bharti Telemedia Ltd. Circle 4 (2) Bharti Crescent 1, Nelson New Delhi Vs Mandela Road, Vasant Kunj, Phase-II, New Delhi-110070 PAN No.AADCB0147R Appellant Responde…

Bharti Telemedia Limited, New Delhi vs. DCIT, Circle-4(2), New Delhi

In the result, the appeals of the Assessee are allowed and appeals of the Revenue are dismissed

ITA 4960/DEL/2024[2020-21]Status: DisposedITAT Delhi12 Dec 2025AY 2020-21

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 35ASection 4

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘A’: NEW DELHI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER & SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No.4960 & 624/Del/2024 [Assessment Year: 2020-21 & 2021-22] Bharti Telemedia Ltd. DCIT Bharti Crescent 1, Nelson Circle 4 (2) Mandela Road, Vasant Kunj, Vs New Delhi Phase-II, New Delhi-110070 PAN No.AADCB0147R Appellant Respondent ITA No.4966 & 4868/Del/2024 [Assessment Year: 2020-21 & 2016-17] DCIT Bharti Telemedia Ltd. Circle 4 (2) Bharti Crescent 1, Nelson New Delhi Vs Mandela Road, Vasant Kunj, Phase-II, New Delhi-110070 PAN No.AADCB0147R Appellant Responde…

DCIT, Circle 4(2), New Delhi vs. Ms Bharti Telemedia Ltd, New Delhi

In the result, the appeals of the Assessee are allowed and appeals of the Revenue are dismissed

ITA 4868/DEL/2024[2016-17]Status: DisposedITAT Delhi12 Dec 2025AY 2016-17

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 35ASection 4

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘A’: NEW DELHI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER & SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No.4960 & 624/Del/2024 [Assessment Year: 2020-21 & 2021-22] Bharti Telemedia Ltd. DCIT Bharti Crescent 1, Nelson Circle 4 (2) Mandela Road, Vasant Kunj, Vs New Delhi Phase-II, New Delhi-110070 PAN No.AADCB0147R Appellant Respondent ITA No.4966 & 4868/Del/2024 [Assessment Year: 2020-21 & 2016-17] DCIT Bharti Telemedia Ltd. Circle 4 (2) Bharti Crescent 1, Nelson New Delhi Vs Mandela Road, Vasant Kunj, Phase-II, New Delhi-110070 PAN No.AADCB0147R Appellant Responde…

Deputy Commissioner of Income Tax, Circle-2, Kota vs. Rishiraj Singh, Jhalawar

In the result, the appeal of the revenue is dismissed

ITA 1073/JPR/2025[2023-24]Status: DisposedITAT Jaipur19 Nov 2025AY 2023-24
For Appellant: Sh. Vinod Gupta, CA &For Respondent: Mohd. Azharuddin, CA
Section 139(1)Section 143(3)Section 68

…o be decided in the context of the business carried on by an assessee. Merely, because the benefit accruing by the expenditure is of enduring nature, is by itself not a conclusive test to hold it as a capital expenditure (see Empire Jute Co Ltd. v. CIT [1980] 124 ITR 1 (SC)]. Normally initial investment on machines and their parts will be in the nature of capital expenditure but replacement of parts of an existing machinery in the course of their working will be a revenue expenditure. In the instant case having regard to the nature of the business of the assessee and applying the principle of law enunciated in My…

Tata Teleservices Limited, Delhi vs. Assistant Commissioner of Income Tax, Circle 25(1), Delhi

In the result, the appeal of the assessee is allowed

ITA 2549/DEL/2024[2017-18]Status: DisposedITAT Delhi27 Oct 2025AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri Avdhesh Kumar Mishraita No.2549/Del./2024, A.Y. 2017-18 Tata Teleservices Limited Assistant Commissioner Of Jeevan Bharati Tower-1, Income Tax, Circle-25(1), 10Th Floor, Vs. C. R. Building, I. P. Estate, 24, Connaught Circus New Delhi New Delhi Pan: Aaact2438A (Appellant) (Respondent) Appellant By Sh. Salil Kapoor, Advocate Ms. Ananya Kapoor, Advocate & Sh. Shivam Yadav, Advocate Respondent By Sh. Dayainder Singh Sidhu, Cit-Dr Date Of Hearing 30/07/2025 Date Of Pronouncement 27/10/2025 Order Per Avdhesh Kumar Mishra, Am This Appeal Of The Assessee For Assessment Year (‘Ay’) 2017-18 Is Directed Against The Order Dated 29.03.2024 Of The Commissioner Of Income Tax (Appeals), Nfac, New Delhi [‘Cit(A)’].

Section 142(1)Section 143(3)Section 35DSection 37(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘C’: NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER ITA No.2549/Del./2024, A.Y. 2017-18 Tata Teleservices Limited Assistant Commissioner of Jeevan Bharati Tower-1, Income Tax, Circle-25(1), 10th Floor, Vs. C. R. Building, I. P. Estate, 24, Connaught Circus New Delhi New Delhi PAN: AAACT2438A (Appellant) (Respondent) Appellant by Sh. Salil Kapoor, Advocate Ms. Ananya Kapoor, Advocate & Sh. Shivam Yadav, Advocate Respondent by Sh. Dayainder Singh Sidhu, CIT-DR Date of Hearing 30/07/2025 Date of Pronoun…

ACIT-3(1)(1), Mumbai, Ayakar Bhawan vs. Samsonite South Asia Pvt Ltd, Andheri

In the result, appeal of the Revenue is dismissed

ITA 4278/MUM/2025[2010-11]Status: DisposedITAT Mumbai30 Sept 2025AY 2010-11

Bench: Shri Saktijit Dey, Hon'Ble & Shri Girish Agrawalassessment Year: 2010-11 Assistant Commissioner Of Samsonite South Asia Pvt. Ltd. Income Tax 3(1)(1) 402/Ackruti Star, Midc, 607, Ayakar Bhawan, M.K. Andheri East, Vs. Road, Mumbai – 400093 Mumbai - 400020 (Pan: Aaacs8598L) (Appellant) (Respondent) Present For: Assessee : Jitendra Singh, Advocate Revenue : Shri Surendra Mohan, Sr. Dr Date Of Hearing : 12.08.2025 Date Of Pronouncement : 30.09.2025 O R D E R Per Girish Agrawal: This Appeal Filed By The Revenue Is Against The Order Of Ld. Cit(A), National Faceless Appeal Centre (Nfac), Delhi Vide Order No. Itba/Nfac/S/250/2025-26/1075686655(1), Dated 21.04.2025, Passed Against The Order By Additional Commissioner Of Income Tax 8(3), Mumbai U/S.143(3) Of The Income-Tax Act, 1961 (Hereinafter Referred To As The “Act”), Dated 30.03.2014, For Assessment Year 2010- 11. 2. Grounds Taken By The Revenue Are Reproduced As Under: (1) Whether On The Facts & In The Circumstances Of The Case & In Law, The Ld. Cit(A) Is Correct In Allowing The Entire Amount Of Rs.7,32,38,757/- Incurred By The Assessee For Building Of ‘Samsonite’ Brand Without Appreciating The Fact That These Expenses Were Incurred Towards Creating Intangible Rights In Its Favour Which Are Capable Of Giving Enduring Benefits To The Assessee Company & Hence Are Assignable Over A Number Of Year?

For Appellant: Jitendra Singh, AdvocateFor Respondent: Shri Surendra Mohan, Sr. DR
Section 143(3)

…sessee-company on corporate advertisement to maintain its corporate image which resulted in increased sale of products, was to be allowed as revenue expenditure. 7 Samsonite South Asia Pvt. Ltd. Assessment Year 2010-11 (ii) Expire Jute Co. Ltd. v. CIT (1980) 124 ITR 1(SC) Proposition: Even if there is the enduring benefit, if expenditure is in revenue filed same is to be allowed as a revenue expenditure. (iii) Sassoon J David and Co. P. Ltd. v. CIT (1979) 118 ITR 261(SC) Proposition: It is for the assessee to decide whether any expenditure is to be incurred for the business. 22. Furthermore learned counsel submi…

Mahindra and Mahindra Limited (As Sucessor to Mahindra Two Wheelers Limited Which in Turn Is Sucessor to Mahindra Trucks and Buses Limited), Mumbai vs. Deputy Commissioner of Income Tax Circle 2(2)(1), Mumbai

ITA 4964/MUM/2025[2018-19]Status: DisposedITAT Mumbai25 Sept 2025AY 2018-19
Section 115JSection 143(1)Section 143(3)Section 234ASection 234CSection 250Section 254(1)Section 270ASection 28Section 37

…on and brand-building expenses are revenue in nature, unless they result in the creation of a capital asset or provide an enduring benefit to the assessee 11 Mahindra And Mahindra Limited  Additional Case Laws 1. Empire Jute Co. Ltd. v. CIT Citation: (1980) 124 ITR 1 (SC) Ratio: "Enduring benefit" test not conclusive; if expenditure facilitates trading operations or business efficiency, it is revenue even if benefit may endure. 2. Alembic Chemical Works Co. Ltd. v. CIT Citation: (1989) 177 ITR 377 (SC) Ratio: Commercial advantage of enduring nature may yet be revenue in character, depending on context and purpo…

M/S Kanak Vrindavan Resorts Limited, Jaipur vs. Income Tax Officer, Ward 6(2), Jaipur

In the result, the appeal of the assessee is allowed

ITA 543/JPR/2025[2016-17]Status: DisposedITAT Jaipur02 Sept 2025AY 2016-17

Bench: SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member), SHRI NARINDER KUMAR (Judicial Member)

For Appellant: Sh. Tarun Mittal, CAFor Respondent: Sh. Gautam Singh Choudhary, Addl. CIT
Section 143(1)(a)Section 143(2)Section 143(3)Section 145Section 37

…or which the AO cannot walk into the shoe of the businessman to verify the necessity or the business expediency. In this regard further reliance is placed on the following decisions. 21 M/s Kanak Varindavan Resorts Ltd. vs. ITO Empire Jute Co. Ltd. Vs. CIT 124 ITR 1 (SC) What is an outgoing of capital and what is an outgoing on account of revenue depends on what the expenditure is calculated to effect from a practical and business point of view rather than upon the juristic classification of the legal rights, if any, secured, employed or exhausted in the process. The question must be viewed in the larger conte…

Candor Kolkata One Hi-Tech Structures Private Limited, Mumbai vs. ACIT Circle-5(2), New Delhi

ITA 193/DEL/2021[2017-18]Status: DisposedITAT Delhi29 Aug 2025AY 2017-18

Bench: Shri Anubhav Sharma & Shri Amitabh Shukla

Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : F : NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER ITA No. & Appellant Respondent Assessment Year 3154/Del/2019 Candor Gurgaon One Realty Addl. CIT, 2015-15 Projects Private Limited, Spl Range-2, 1102, Tower B, 11th Floor, New Delhi Peninsula Business Park, Senapati Bapat Road, Lower Parel, Mumbai – 400 013. PAN: AAACU8046K 4598/Del/2019 Addl. CIT, Candor Gurgaon One Realty 2015-16 Spl Range-2, Projects Private Limited, New Delhi 1005, Roots Tower, Plot No.7, District Centre, Laxmi Nagar, Delhi – 110 092. PAN: A…