Empire Jute Co. Ltd. v. CIT

4 SCC 25Reported decision1980#6921 most cited
17

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2010 to 2023.

Also reported as

124 ITR 11

Sections most often in play

Section 14Section 256(1)Section 37(1)Section 56Section 57

Judgments citing Empire Jute Co. Ltd. v. CIT

M/S ASIAN HOTELS LTD vs. COMMISSIONER OF INCOME TAX

The appeal is disposed of in the aforesaid terms

ITA/1398/2006HC Delhi09 Oct 2023

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 37

…T v. Malayalam Plantations, AIR 1964 SC 1722]. (x) The statutory authorities have wrongly applied the test of enduring benefit to categorise the expenses incurred by the appellant/assessee as capital expenditure. [See Empire Jute Co. Ltd. V. CIT, (1980) 4 SCC 25] (xi) The statutory authorities have failed to appreciate the correct ratio of the judgment of the Supreme Court rendered in Ballimal Naval Kishore v. CIT, (1997) 224 ITR 414 SC. In Ballimal’s case, expenses were incurred to convert a ginning factory into a cinema theatre. In contrast, in the instant case, the appellant/assessee has incurred…

M/S AADHI ENTERPRISES PRIVATE LIMITED,CHENNAI vs. ACIT, CENTRAL CIRCLE-3(1), CHENNAI

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

ITA 308/CHNY/2023[2016-17]Status: DisposedITAT Chennai23 Aug 2023AY 2016-17

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwalआयकर अपील सं./Ita No.: 308/Chny/2023 िनधा"रण वष"/Assessment Year: 2016-17 Aadhi Enterprises Pvt. Ltd., The Acit, No.1-130, Perambur Barracks V. Central Circle-3(1), Road, Pattalam, Chennai. Chennai – 600 112. Pan: Aanca 0382P (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri B. Ramakrishnan, Fca Shri S. Neelakantan, Fca Shri Shrenik Chordia, Ca ""यथ" क" ओर से/Respondent By : Shri S. Senthil Kumaran, Cit सुनवाई क" तारीख/Date Of Hearing : 11.07.2023 घोषणा क" तारीख/Date Of Pronouncement : 23.08.2023

For Appellant: Shri B. Ramakrishnan, FCAFor Respondent: Shri S. Senthil Kumaran, CIT
Section 132Section 139(1)Section 143(2)Section 153ASection 68

…ction, genuineness of the transaction and creditworthiness of the creditor, the burden shifts to the revenue to show that the amount belongs to the assessee, including the decision of the Hon'ble Apex Court in Principal CIT v. NRA Iron & Steel (P.) Ltd [2019] 4 SCC 25, which is binding in nature. I.T.A. No.308/CHNY/2023 30 17. He further placed reliance on latest case-laws upholding the same view. The Decision of ITAT Mumbai Bench 'H in the case of M/s. Hinduja Realty Ventures Ltd. [TS-565-ITAT-2019(Mum)] which is squarely applicable to the assessee's case in hand where the set of facts involved are identical. I…

DCIT(LTU) - 1, MUMBAI vs. ACC LTD., MUMBAI

In the result, appeal filed by assessee is partly allowed and appeal filed by the revenue is dismissed

ITA 3178/MUM/2019[2011-12]Status: DisposedITAT Mumbai28 Feb 2023AY 2011-12

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Ble

Section 14Section 143(3)Section 14A

…of sale of loom-hours can be termed as capital receipt and not income out of business. 5. Subsequently, in a later decision of the Apex Court, a question came up for consideration in the case of M/s. Empire Jute Co. Ltd. v. Commissioner of Income-tax [(1980) 4 SCC 25] the question which arose before the Apex Court was, if loom-hours are purchased by the manufacturing mills, whether it can be termed as capital expenditure or revenue expenditure. In the said decision, the earlier decision of the Apex Court in the case of Maheswari Devi Jute Mills (supra) was also relied upon by the Revenue and after considering th…

ACC LTD.,MUMBAI vs. ADDL CIT(LTU) , MUMBAI

In the result, appeal filed by assessee is partly allowed and appeal filed by the revenue is dismissed

ITA 3139/MUM/2019[2011-12]Status: DisposedITAT Mumbai28 Feb 2023AY 2011-12

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Ble

Section 14Section 143(3)Section 14A

…of sale of loom-hours can be termed as capital receipt and not income out of business. 5. Subsequently, in a later decision of the Apex Court, a question came up for consideration in the case of M/s. Empire Jute Co. Ltd. v. Commissioner of Income-tax [(1980) 4 SCC 25] the question which arose before the Apex Court was, if loom-hours are purchased by the manufacturing mills, whether it can be termed as capital expenditure or revenue expenditure. In the said decision, the earlier decision of the Apex Court in the case of Maheswari Devi Jute Mills (supra) was also relied upon by the Revenue and after considering th…

PCIT MUMBAI 1 vs. ELEL HOTELS AND INVESTMENTS LTD

ITA/160/2022HC Delhi31 May 2022

Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA

…not already own or possess. This Court is of the view that the respondent-assessee spent Rs.30.86 crores to facilitate its business and trading operations. Accordingly, the test of capital expenditure as stipulated in Empire Jute Co. Ltd. vs. CIT, (1980) 4 SCC 25, Commissioner of Income Tax vs. Madras Auto Service (P.) Ltd., (1998) 233 ITR 468, Commissioner of Income Tax, Bombay City-I vs. Associated Cement Companies Ltd., (1988) 172 ITR 257, Hindustan Times Ltd. vs. Commissioner of Income Tax, New Delhi, (1980) 122 ITR 977, CIT Vs. Bharat Aluminium Company Ltd., 2010 SCC OnLine Del 2618 is not satisfi…

PCIT MUMBAI 1 vs. ELEL HOTELS AND INVESTMENTS LTD

ITA-160/2022HC Delhi31 May 2022

…not already own or possess. This Court is of the view that the respondent-assessee spent Rs.30.86 crores to facilitate its business and trading operations. Accordingly, the test of capital expenditure as stipulated in Empire Jute Co. Ltd. vs. CIT, (1980) 4 SCC 25, Commissioner of Income Tax vs. Madras Auto Service (P.) Ltd., (1998) 233 ITR 468, Commissioner of Income Tax, Bombay City-I vs. Associated Cement Companies Ltd., (1988) 172 ITR 257, Hindustan Times Ltd. vs. Commissioner of Income Tax, New Delhi, (1980) 122 ITR 977, CIT Vs. Bharat Aluminium Company Ltd., 2010 SCC OnLine Del 2618 is not satisfi…

WIPRO FINANCE LTD. vs. THE COMMISSIONER OF INCOME TAX, BANGALORE

The appeal is allowed in terms of the signed

C.A. No.-006677-006677 - 2008Supreme Court12 Apr 2022
Section 143(1)(a)Section 254Section 37Section 43A

…or capital disbursement qua the payer. ….. xxx xxx xxx 8. ….. There may be cases where expenditure, even if incurred for obtaining advantage of enduring benefit, may, nonetheless, be on revenue account and the test of enduring 6 (1980) 4 SCC 25 7 supra at footnote No. 5 8 supra at footnote No. 6 8 benefit may break down. It is not every advantage of enduring nature, acquired by an assessee that brings the case within the principle laid down in this test. What is material to consider is the nature of the advantage in a commercial sense and it is only where the advantage is in the capit…

M/S. ALPHA DESIGN TECHNOLOGIES PRIVATE LIMITED,BANGALORE vs. INCOME TAX OFFICER, WARD- 1(1)(2), BANGALORE

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

ITA 1521/BANG/2019[2015-16]Status: DisposedITAT Bangalore27 Jan 2021AY 2015-16

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri Prashanth Chandrashekar, CAFor Respondent: Shri Kannan Narayanan, Jt.CIT(DR)(ITAT), Bengaluru
Section 14Section 143(3)Section 148Section 37

…as having been incurred wholly and exclusively for business of the assessee and revenue expenditure. Such expenses cannot be construed as a capital expenses. …………….. 22. The principle was considered by the Supreme Court in Empire Jute Co. Ltd. vs. CIT (1980) 124 ITR 11. In the said case, the Court observed that there may be cases where expenditure, even if incurred for obtaining an advantage of enduring benefit may none the less, be on revenue account and the test of enduring benefit may break down. It is not every advantage of enduring nature acquired by an assessee that brings the case within the principle lai…

M/S. ALPHA DESIGN TECHNOLOGIES PRIVATE LIMITED,BANGALORE vs. INCOME TAX OFFICER, WARD - 1(1)(2), BANGALORE

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

ITA 1520/BANG/2019[2014-15]Status: DisposedITAT Bangalore27 Jan 2021AY 2014-15

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri Prashanth Chandrashekar, CAFor Respondent: Shri Kannan Narayanan, Jt.CIT(DR)(ITAT), Bengaluru
Section 14Section 143(3)Section 148Section 37

…as having been incurred wholly and exclusively for business of the assessee and revenue expenditure. Such expenses cannot be construed as a capital expenses. …………….. 22. The principle was considered by the Supreme Court in Empire Jute Co. Ltd. vs. CIT (1980) 124 ITR 11. In the said case, the Court observed that there may be cases where expenditure, even if incurred for obtaining an advantage of enduring benefit may none the less, be on revenue account and the test of enduring benefit may break down. It is not every advantage of enduring nature acquired by an assessee that brings the case within the principle lai…

M/S. ALPHA DESIGN TECHNOLOGIES PRIVATE LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE- 11(1), BANGALORE

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

ITA 1519/BANG/2019[2013-14]Status: DisposedITAT Bangalore27 Jan 2021AY 2013-14

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri Prashanth Chandrashekar, CAFor Respondent: Shri Kannan Narayanan, Jt.CIT(DR)(ITAT), Bengaluru
Section 14Section 143(3)Section 148Section 37

…as having been incurred wholly and exclusively for business of the assessee and revenue expenditure. Such expenses cannot be construed as a capital expenses. …………….. 22. The principle was considered by the Supreme Court in Empire Jute Co. Ltd. vs. CIT (1980) 124 ITR 11. In the said case, the Court observed that there may be cases where expenditure, even if incurred for obtaining an advantage of enduring benefit may none the less, be on revenue account and the test of enduring benefit may break down. It is not every advantage of enduring nature acquired by an assessee that brings the case within the principle lai…

M/S. ALPHA DESIGN TECHNOLOGIES PRIVATE LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE- 11(1), BANGALORE

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

ITA 1518/BANG/2019[2012-13]Status: DisposedITAT Bangalore27 Jan 2021AY 2012-13

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri Prashanth Chandrashekar, CAFor Respondent: Shri Kannan Narayanan, Jt.CIT(DR)(ITAT), Bengaluru
Section 14Section 143(3)Section 148Section 37

…as having been incurred wholly and exclusively for business of the assessee and revenue expenditure. Such expenses cannot be construed as a capital expenses. …………….. 22. The principle was considered by the Supreme Court in Empire Jute Co. Ltd. vs. CIT (1980) 124 ITR 11. In the said case, the Court observed that there may be cases where expenditure, even if incurred for obtaining an advantage of enduring benefit may none the less, be on revenue account and the test of enduring benefit may break down. It is not every advantage of enduring nature acquired by an assessee that brings the case within the principle lai…

M/S. ALPHA DESIGN TECHNOLOGIES PRIVATE LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE- 11(1), BANGALORE

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

ITA 1517/BANG/2019[2011-12]Status: DisposedITAT Bangalore27 Jan 2021AY 2011-12

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri Prashanth Chandrashekar, CAFor Respondent: Shri Kannan Narayanan, Jt.CIT(DR)(ITAT), Bengaluru
Section 14Section 143(3)Section 148Section 37

…as having been incurred wholly and exclusively for business of the assessee and revenue expenditure. Such expenses cannot be construed as a capital expenses. …………….. 22. The principle was considered by the Supreme Court in Empire Jute Co. Ltd. vs. CIT (1980) 124 ITR 11. In the said case, the Court observed that there may be cases where expenditure, even if incurred for obtaining an advantage of enduring benefit may none the less, be on revenue account and the test of enduring benefit may break down. It is not every advantage of enduring nature acquired by an assessee that brings the case within the principle lai…

M/S. ALPHA DESIGN TECHNOLOGIES PRIVATE LIMITED,BANGALORE vs. INCOME TAX OFFICER, WARD- 1(1)(2), BANGALORE

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

ITA 1516/BANG/2019[2009-10]Status: DisposedITAT Bangalore27 Jan 2021AY 2009-10

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri Prashanth Chandrashekar, CAFor Respondent: Shri Kannan Narayanan, Jt.CIT(DR)(ITAT), Bengaluru
Section 14Section 143(3)Section 148Section 37

…as having been incurred wholly and exclusively for business of the assessee and revenue expenditure. Such expenses cannot be construed as a capital expenses. …………….. 22. The principle was considered by the Supreme Court in Empire Jute Co. Ltd. vs. CIT (1980) 124 ITR 11. In the said case, the Court observed that there may be cases where expenditure, even if incurred for obtaining an advantage of enduring benefit may none the less, be on revenue account and the test of enduring benefit may break down. It is not every advantage of enduring nature acquired by an assessee that brings the case within the principle lai…

NATIONAL CO-OPERATIVE DEVELOPMENT CORPORATION vs. COMMISSIONER OF INCOME TAX-V, DELHI

C.A. No.-005105-005105 - 2009Supreme Court11 Sept 2020

Bench: HON'BLE MR. JUSTICE SANJAY KISHAN KAUL

Section 12Section 12ASection 12BSection 13Section 13(1)Section 24Section 9

…n payment constitutes income or capital receipt in the hands of the recipient is not material in determining whether the payment is revenue or capital disbursement qua the payer. It was felicitously pointed out by Macnaghten, J. in Race Course Betting 3(1980) 4 SCC 25 16 Control Board v. Wild that a “payment may be a revenue payment from the point of view of the payer and a capital payment from the point of view of the receiver and vice versa. Therefore, the decision in Maheshwari Devi Jute Mills case cannot be regarded as an authority for the proposition that payment made by an assessee for purchase…

COMMISSIONER OF INCOME TAX-III vs. M/S SUBHASH KABINI POWER CORPORATION LIMITED

ITA/169/2015HC Karnataka29 Mar 2016

Bench: B.V.NAGARATHNA,JAYANT PATEL

Section 260Section 263Section 80I

…loom-hours can be termed as capital receipt and not income out of business. 5. Subsequently, in a later decision of the Apex Court, a question came up for consideration in the case of M/s. Empire Jute Co. Ltd. v. Commissioner of Income Tax [(1980) 4 SCC 25] the question which arose before the Apex Court was, if loom-hours are purchased by the manufacturing mills, whether it can be termed as capital expenditure or revenue expenditure. In the said decision, the earlier decision of the Apex Court in the case of Maheswari Devi Jute Mills (supra) was also relied upon by the Revenue and after consid…

M/S LUCENT TECHNOLOGIES HINDUSTAN PVT LTD vs. THE JOINT COMMISSIONER OF INCOME-TAX

The appeal is dismissed

ITA/579/2006HC Karnataka13 Aug 2012

Bench: B.MANOHAR,K.SREEDHAR RAO

Section 260

…the competition of 4 NELCO is enduring benefit, therefore, amounts to capital expenditure. 4. Sri S. Parthasarathi, learned counsel for the appellant relied upon the decision in the case of Empire of Jute Co. Ltd., Vs. Commissioner of Income Tax reported in 124 ITR 11. In the cited case, the assessee had purchased extra loom hours for manufacturing the products. The Supreme Court in para 6 of its judgment made the following observations:- “xxxx xxxx xxxx Here, by purchase of loom hours no new asset has been created. There is no addition to or expansion of the profit-making apparatus of the assessee. The income-…

Commissioner of Income Tax-IV vs. M/s DCM Technologies Limited

ITA/861/2010HC Delhi15 Jul 2010
Section 260A

…ar expenditure is revenue or capital expenditure. In this regard, the Apex Court opined thus: We may at the outset indicate that this court has laid down the test for determining whether a particular expenditure is 2010:DHC:3482-DB Ltd. v. CIT [1980] 4 SCC 25; [1980]124 ITR 1(SC). This court after considering the law on the subject in detail observed at page 8 as under page 10): “The decided cases have, from time to time, evolved various tests for distinguishing between capital and revenue expenditure but no test is paramount or conclusive. There is no all embracing formula which can provide a r…