Empire Jute Co. Ltd. v. CIT

ITA 1142/CHNY/2018[214-15]Status: DisposedITAT Chennai14 Dec 2018

…out any infirmity in the findings of the Ld. Commissioner of Income Tax (A). We also note that while reaching his decision, the Ld. Commissioner of Income Tax (A) has placed reliance on the judgment of the Hon’ble Apex Court in the case of Empire Jute Co. 124 ITR 1(SC). Accordingly, on overall view of facts of the case and in view of the findings of the Ld. Commissioner of Income Tax (A) remaining uncontroverted, we find no reason to interfere with the findings of the Ld. Commissioner of Income Tax (A) on this issue and we accordingly dismiss ground no. 5 of the revenue’s appeal. C.O. No. 105/D/2015 7.3 A…

Computer Age Management Services Pvt. Ltd., Chennai vs. DCIT Ltu 2, Chennai

In the result, the appeals of the assessee for all the assessment years are treated as partly allowed

Bench: Shri Abraham P. George & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. Nos.1140, 1141 & 1142/Chny/2018. "नधा"रण वष" /Assessment Years : 2012-13, 2013-14 & 2014-15. Computer Age Management Vs. The Deputy Commissioner Of Services Pvt. Ltd, Income Tax, Rayala Towers, 3Rd Floor, Ltu-2, 158, Anna Salai, Chennai. Chennai 600 002. [Pan Aaacc 3035G] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. Sandeep Bagmar, R. AdvocateFor Respondent: Shri. R. Clement Ramesh

ITA 1140/CHNY/2018[2012-13]Status: DisposedITAT Chennai14 Dec 2018AY 2012-13

…आयकर अपील"य अ"धकरण, ’सी’ "यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL, ‘C’ BENCH : CHENNAI "ी अ"ाहम पी. जॉज", लेखा सद"य एवं "ी धु"वु" आर.एल रे"डी, "या"यक सद"य के सम" । [BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY, JUDICIAL MEMBER] आयकर अपील सं./I.T.A. Nos.1140, 1141 & 1142/CHNY/2018. "नधा"रण वष" /Assessment years : 2012-13, 2013-14 & 2014-15. Computer Age Management Vs. The Deputy Commissioner of Services Pvt. Ltd, Income Tax, Rayala Towers, 3rd floor, LTU-2, 158, Anna Salai, Chennai. Chennai 600 002. [PAN AAACC 3035G] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर…

Computer Age Management Services Pvt. Ltd., Chennai vs. DCIT Ltu 2, Chennai

In the result, the appeals of the assessee for all the assessment years are treated as partly allowed

Bench: Shri Abraham P. George & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. Nos.1140, 1141 & 1142/Chny/2018. "नधा"रण वष" /Assessment Years : 2012-13, 2013-14 & 2014-15. Computer Age Management Vs. The Deputy Commissioner Of Services Pvt. Ltd, Income Tax, Rayala Towers, 3Rd Floor, Ltu-2, 158, Anna Salai, Chennai. Chennai 600 002. [Pan Aaacc 3035G] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. Sandeep Bagmar, R. AdvocateFor Respondent: Shri. R. Clement Ramesh

ITA 2760/DEL/2018[2014-15]Status: DisposedITAT Delhi28 Nov 2018AY 2014-15

…आयकर अपील"य अ"धकरण, ’सी’ "यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL, ‘C’ BENCH : CHENNAI "ी अ"ाहम पी. जॉज", लेखा सद"य एवं "ी धु"वु" आर.एल रे"डी, "या"यक सद"य के सम" । [BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY, JUDICIAL MEMBER] आयकर अपील सं./I.T.A. Nos.1140, 1141 & 1142/CHNY/2018. "नधा"रण वष" /Assessment years : 2012-13, 2013-14 & 2014-15. Computer Age Management Vs. The Deputy Commissioner of Services Pvt. Ltd, Income Tax, Rayala Towers, 3rd floor, LTU-2, 158, Anna Salai, Chennai. Chennai 600 002. [PAN AAACC 3035G] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर…

Jubilant Biosys Ltd, Noida vs. DCIT, Circle-1, Noida

In the result appeals filed by assessee in all the years under consideration before us stands partly allowed

Bench: Shri Nk Saini & Smt. Beena A Pillai

For Appellant: Sh. KM Gupta, AdvFor Respondent: Sh. Manish Gupta, CIT,DR

ITA 2759/DEL/2018[2013-14]Status: DisposedITAT Delhi28 Nov 2018AY 2013-14

…dispute that expenditure has not been incurred for purposes of research activity carried on by assessee in its normal course of business. We draw our support from decision of Hon’ble Supreme Court in case of Empire Jute Company Ltd vs. CIT reported in (1980) 124 ITR 1, wherein Hon’ble Court laid down that test of enduring benefit cannot be applied blindly and mechanically without having regard to facts and circumstances of a given case. We also referred to Clause 5.1 of agreement at page 109 of paper ITA No.7302/Del/17, 1822&1823/Del/18, 2759 & 2760/Del/18 Jubilant Biosys Ltd. ITA No. 1824 & 1825/Del/18, 2757 &…

Jubilant Biosys Ltd, Noida vs. DCIT, Circle-1, Noida

In the result appeals filed by assessee in all the years under consideration before us stands partly allowed

Bench: Shri Nk Saini & Smt. Beena A Pillai

For Appellant: Sh. KM Gupta, AdvFor Respondent: Sh. Manish Gupta, CIT,DR

ITA 2758/DEL/2018[2013-14]Status: DisposedITAT Delhi28 Nov 2018AY 2013-14

…dispute that expenditure has not been incurred for purposes of research activity carried on by assessee in its normal course of business. We draw our support from decision of Hon’ble Supreme Court in case of Empire Jute Company Ltd vs. CIT reported in (1980) 124 ITR 1, wherein Hon’ble Court laid down that test of enduring benefit cannot be applied blindly and mechanically without having regard to facts and circumstances of a given case. We also referred to Clause 5.1 of agreement at page 109 of paper ITA No.7302/Del/17, 1822&1823/Del/18, 2759 & 2760/Del/18 Jubilant Biosys Ltd. ITA No. 1824 & 1825/Del/18, 2757 &…

Jubilant Chemsys Ltd., Noida vs. DCIT, Circle-1, Noida

In the result appeals filed by assessee in all the years under consideration before us stands partly allowed

Bench: Shri Nk Saini & Smt. Beena A Pillai

For Appellant: Sh. KM Gupta, AdvFor Respondent: Sh. Manish Gupta, CIT,DR

ITA 2757/DEL/2018[2012-13]Status: DisposedITAT Delhi28 Nov 2018AY 2012-13

…dispute that expenditure has not been incurred for purposes of research activity carried on by assessee in its normal course of business. We draw our support from decision of Hon’ble Supreme Court in case of Empire Jute Company Ltd vs. CIT reported in (1980) 124 ITR 1, wherein Hon’ble Court laid down that test of enduring benefit cannot be applied blindly and mechanically without having regard to facts and circumstances of a given case. We also referred to Clause 5.1 of agreement at page 109 of paper ITA No.7302/Del/17, 1822&1823/Del/18, 2759 & 2760/Del/18 Jubilant Biosys Ltd. ITA No. 1824 & 1825/Del/18, 2757 &…

Jubilant Chemsys Ltd., Noida vs. DCIT, Circle-1, Noida

In the result appeals filed by assessee in all the years under consideration before us stands partly allowed

Bench: Shri Nk Saini & Smt. Beena A Pillai

For Appellant: Sh. KM Gupta, AdvFor Respondent: Sh. Manish Gupta, CIT,DR

ITA 1825/DEL/2018[2013-14]Status: DisposedITAT Delhi28 Nov 2018AY 2013-14

…dispute that expenditure has not been incurred for purposes of research activity carried on by assessee in its normal course of business. We draw our support from decision of Hon’ble Supreme Court in case of Empire Jute Company Ltd vs. CIT reported in (1980) 124 ITR 1, wherein Hon’ble Court laid down that test of enduring benefit cannot be applied blindly and mechanically without having regard to facts and circumstances of a given case. We also referred to Clause 5.1 of agreement at page 109 of paper ITA No.7302/Del/17, 1822&1823/Del/18, 2759 & 2760/Del/18 Jubilant Biosys Ltd. ITA No. 1824 & 1825/Del/18, 2757 &…

Jubilant Chemsys Ltd., Noida vs. DCIT, Circle-1, Noida

In the result appeals filed by assessee in all the years under consideration before us stands partly allowed

Bench: Shri Nk Saini & Smt. Beena A Pillai

For Appellant: Sh. KM Gupta, AdvFor Respondent: Sh. Manish Gupta, CIT,DR

ITA 1824/DEL/2018[2012-13]Status: DisposedITAT Delhi28 Nov 2018AY 2012-13

…dispute that expenditure has not been incurred for purposes of research activity carried on by assessee in its normal course of business. We draw our support from decision of Hon’ble Supreme Court in case of Empire Jute Company Ltd vs. CIT reported in (1980) 124 ITR 1, wherein Hon’ble Court laid down that test of enduring benefit cannot be applied blindly and mechanically without having regard to facts and circumstances of a given case. We also referred to Clause 5.1 of agreement at page 109 of paper ITA No.7302/Del/17, 1822&1823/Del/18, 2759 & 2760/Del/18 Jubilant Biosys Ltd. ITA No. 1824 & 1825/Del/18, 2757 &…

Jubilant Chemsys Ltd., Noida vs. DCIT, Circle-1, Noida

In the result appeals filed by assessee in all the years under consideration before us stands partly allowed

Bench: Shri Nk Saini & Smt. Beena A Pillai

For Appellant: Sh. KM Gupta, AdvFor Respondent: Sh. Manish Gupta, CIT,DR

ITA 1823/DEL/2018[2014-15]Status: DisposedITAT Delhi28 Nov 2018AY 2014-15

…dispute that expenditure has not been incurred for purposes of research activity carried on by assessee in its normal course of business. We draw our support from decision of Hon’ble Supreme Court in case of Empire Jute Company Ltd vs. CIT reported in (1980) 124 ITR 1, wherein Hon’ble Court laid down that test of enduring benefit cannot be applied blindly and mechanically without having regard to facts and circumstances of a given case. We also referred to Clause 5.1 of agreement at page 109 of paper ITA No.7302/Del/17, 1822&1823/Del/18, 2759 & 2760/Del/18 Jubilant Biosys Ltd. ITA No. 1824 & 1825/Del/18, 2757 &…

Jubilant Biosys Ltd, Noida vs. DCIT, Circle-1, Noida

In the result appeals filed by assessee in all the years under consideration before us stands partly allowed

Bench: Shri Nk Saini & Smt. Beena A Pillai

For Appellant: Sh. KM Gupta, AdvFor Respondent: Sh. Manish Gupta, CIT,DR

ITA 1822/DEL/2018[2013-14]Status: DisposedITAT Delhi28 Nov 2018AY 2013-14

…dispute that expenditure has not been incurred for purposes of research activity carried on by assessee in its normal course of business. We draw our support from decision of Hon’ble Supreme Court in case of Empire Jute Company Ltd vs. CIT reported in (1980) 124 ITR 1, wherein Hon’ble Court laid down that test of enduring benefit cannot be applied blindly and mechanically without having regard to facts and circumstances of a given case. We also referred to Clause 5.1 of agreement at page 109 of paper ITA No.7302/Del/17, 1822&1823/Del/18, 2759 & 2760/Del/18 Jubilant Biosys Ltd. ITA No. 1824 & 1825/Del/18, 2757 &…

Jubilant Biosys Ltd, Noida vs. DCIT, Circle-1, Noida

In the result appeals filed by assessee in all the years under consideration before us stands partly allowed

Bench: Shri Nk Saini & Smt. Beena A Pillai

For Appellant: Sh. KM Gupta, AdvFor Respondent: Sh. Manish Gupta, CIT,DR

ITA 7302/DEL/2017[2011-12]Status: DisposedITAT Delhi28 Nov 2018AY 2011-12

…dispute that expenditure has not been incurred for purposes of research activity carried on by assessee in its normal course of business. We draw our support from decision of Hon’ble Supreme Court in case of Empire Jute Company Ltd vs. CIT reported in (1980) 124 ITR 1, wherein Hon’ble Court laid down that test of enduring benefit cannot be applied blindly and mechanically without having regard to facts and circumstances of a given case. We also referred to Clause 5.1 of agreement at page 109 of paper ITA No.7302/Del/17, 1822&1823/Del/18, 2759 & 2760/Del/18 Jubilant Biosys Ltd. ITA No. 1824 & 1825/Del/18, 2757 &…

Jubilant Biosys Ltd., Noida vs. JCIT, Range- 1, Noida

In the result appeals filed by assessee in all the years under consideration before us stands partly allowed

Bench: Shri Nk Saini & Smt. Beena A Pillai

For Appellant: Sh. KM Gupta, AdvFor Respondent: Sh. Manish Gupta, CIT,DR

ITA 157/BIL/2014[2011-12]Status: DisposedITAT Raipur23 Oct 2018AY 2011-12

…dispute that expenditure has not been incurred for purposes of research activity carried on by assessee in its normal course of business. We draw our support from decision of Hon’ble Supreme Court in case of Empire Jute Company Ltd vs. CIT reported in (1980) 124 ITR 1, wherein Hon’ble Court laid down that test of enduring benefit cannot be applied blindly and mechanically without having regard to facts and circumstances of a given case. We also referred to Clause 5.1 of agreement at page 109 of paper ITA No.7302/Del/17, 1822&1823/Del/18, 2759 & 2760/Del/18 Jubilant Biosys Ltd. ITA No. 1824 & 1825/Del/18, 2757 &…

Dy.C.I.T. 1(2), Raipur (Cg) vs. M/S Rishabh Infrastructure Pvt.Ltd, Raipur

In the result, the appeal filed by the revenue is dismissed

Bench: Sh. R.K. Panda & Ms. Suchitra Kambleassessment Year: 2011-12

Section 165Section 4Section 44A

…ermining whether the receipt is of a trading or non- trading nature. 12. As the Hon’ble Supreme Court has observed, in the context of determining the capital or revenue nature of an expenditure, in Empire Jute Co. Ltd. vs. CIT (1980) 17 CTR (SC) 113 : (1980) 124 ITR 1 (SC), the capital or revenue nature of an expenditure and similarly the capital or revenue nature of a receipt had been a vexed question and "this question has always presented a difficult problem and continually baffled the Courts, because it has not been possible, despite occasional judicial valour, to formulate a test for distinguishing between…

JCIT, Rang-2, Kota vs. Chambal Fertilisers and Chemicals Limited, Kota

In the result, respective grounds of appeal are allowed for statistical purposes

ITA 575/JPR/2015[2011-12]Status: DisposedITAT Jaipur17 Oct 2018AY 2011-12

For Appellant: Shri Percy Pardiwala (Adv.)For Respondent: Shri Varinder Mehta (CIT)

ITA 461/JPR/2015[2011-12]Status: DisposedITAT Jaipur17 Oct 2018AY 2011-12

…securing a benefit for the business would be, prima facie, capital expenditure "so long as the benefit is not so transitory as to have no endurance at all". It was also pointed out by this Court in Empire Jute Co. Ltd. vs. CIT (1980) 17 CTR (SC) 113 : (1980) 124 ITR 1 (SC) : TC16R.953, thus : "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 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 advant…

Chambal Fertilisers and Chemicals Limited, Kota vs. JCIT, Kota

In the result, respective grounds of appeal are allowed for statistical purposes

For Appellant: Shri Percy Pardiwala (Adv.)For Respondent: Shri Varinder Mehta (CIT)

ITA 467/DEL/2014[2009-10]Status: DisposedITAT Delhi17 Oct 2018AY 2009-10

…securing a benefit for the business would be, prima facie, capital expenditure "so long as the benefit is not so transitory as to have no endurance at all". It was also pointed out by this Court in Empire Jute Co. Ltd. vs. CIT (1980) 17 CTR (SC) 113 : (1980) 124 ITR 1 (SC) : TC16R.953, thus : "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 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 advant…

Maruti Suzuki India Ltd., New Delhi vs. Addl. CIT, New Delhi

Appeal of the assessee is partly allowed for statistical purpose

Bench: Shri R. K. Panda & Ms Suchitra Kamblei.T.A .No. 467/Del/2014 (A.Y 2009-10)

Section 143(3)Section 144CSection 144C(5)Section 43Section 43B

…. Accordingly, there is no 113 enduring benefit of capital nature to the assessee and the expenditure is revenue in nature. It has been laid down by the Hon’ble Supreme Court in case of Alembic Chemical Works Co. Ltd. 177 ITR 377 and also in Empire Jute case 124 ITR 1 (SC) that the tests of “enduring benefit” and “lumpsum payment” or “once for all payments” are immaterial and irrelevant for laying down whether a particular item of expenditure is capital or revenue. The Ld. AR referred the decision of the Delhi High Court in the case of Shriram Refrigeration Industries Ltd. v. CIT: 127 ITR 746. The assessee, in t…

Financial Institutional Securities Ltd, Mumbai vs. DCIT 4(3)(1), Mumbai

ITA 6891/MUM/2016[2012-13]Status: DisposedITAT Mumbai03 Oct 2018AY 2012-13

Bench: Shri Saktijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am आयकरअपीलसं./I.T.A. No.6479/Mum/2016 (िनधा"रणवष" / Assessment Year:2012-13) Jm Financial Institutional Securities Ltd. Assistant Commissioner Of Income (Now Merged With Jm Financial Limited) Tax- 4(3)(1) बनाम/ 7Th Floor, Cnergy Room No.649, 6Th Floor, Vs. Appasaheb Marathe Marg Aaykar Bhavan, M.K. Road Prabhadevi, Mumbai-400 025 Mumbai-400 020 "थायीलेखासं./जीआइआरसं./Pan/Gir No.Aabca-2496-G (अपीलाथ"/Appellant) (""थ" / Respondent) :

For Appellant: K. Shivram & Aditya Ajgaonkar, Ld. AR’sFor Respondent: Pooja Swaroop, Ld. JCIT-DR

ITA 6479/MUM/2016[2012-13]Status: DisposedITAT Mumbai03 Oct 2018AY 2012-13

…loyees of the Assessee and the assessee company merely made good the difference. Since there was no advantage in the capital filed, the expenditure was revenue expenditure in terms of decision of Hon’ble Apex Court rendered in Empire Jute Company Ltd Vs. CIT [124 ITR 1]. The Ld. Counsel further submitted that the said expenditure was in the nature of incentive for the employees as a means of retaining / rewarding the employees and therefore allowable u/s 37(1). It is further submitted that the assessee made the actual payment to the holding company and neither the parent company nor the assessee company had to fo…

ACIT - 4(3)(1), Mumbai vs. J. M. Financial Institutional Securities Pvt. Ltd., Mumbai

Bench: Shri Saktijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am आयकरअपीलसं./I.T.A. No.6479/Mum/2016 (िनधा"रणवष" / Assessment Year:2012-13) Jm Financial Institutional Securities Ltd. Assistant Commissioner Of Income (Now Merged With Jm Financial Limited) Tax- 4(3)(1) बनाम/ 7Th Floor, Cnergy Room No.649, 6Th Floor, Vs. Appasaheb Marathe Marg Aaykar Bhavan, M.K. Road Prabhadevi, Mumbai-400 025 Mumbai-400 020 "थायीलेखासं./जीआइआरसं./Pan/Gir No.Aabca-2496-G (अपीलाथ"/Appellant) (""थ" / Respondent) :

For Appellant: K. Shivram & Aditya Ajgaonkar, Ld. AR’sFor Respondent: Pooja Swaroop, Ld. JCIT-DR

ITA 1323/CHANDI/2012[2003-04]Status: DisposedITAT Chandigarh28 Sept 2018AY 2003-04

…loyees of the Assessee and the assessee company merely made good the difference. Since there was no advantage in the capital filed, the expenditure was revenue expenditure in terms of decision of Hon’ble Apex Court rendered in Empire Jute Company Ltd Vs. CIT [124 ITR 1]. The Ld. Counsel further submitted that the said expenditure was in the nature of incentive for the employees as a means of retaining / rewarding the employees and therefore allowable u/s 37(1). It is further submitted that the assessee made the actual payment to the holding company and neither the parent company nor the assessee company had to fo…

Glaxosmithkline Asia (P) Ltd., Gurgaon vs. ACIT, Chandigarh

In the result, appeal of the Assessee is allowed for statistical purposes

For Appellant: Sh. Neeraj Jain (C.A), Sh. Abhishek Mukherjee (C.A)For Respondent: Dr. Gulshan Raj