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

Candor Gurgaon One Realty Projects Pvt. Ltd. (Formerly Known As Unitech Realty Projects Pvt. Ltd.), Mumbai vs. ACIT Spl. Range-2, New Delhi

ITA 8377/DEL/2019[2016-17]Status: DisposedITAT Delhi29 Aug 2025AY 2016-17

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…

Candor Gurgaon Two Developers and Project Ltd. (Formerly Knwon As Unitech Developers and Projects Pvt. Ltd.), Mumbai vs. Addi. CIT Spl. Range- 2, New Delhi

ITA 6847/DEL/2019[2016-17]Status: DisposedITAT Delhi29 Aug 2025AY 2016-17

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…

Candor Kolkata One Hi- Tech Structures Pvt. Ltd., Maharashtra vs. ACIT Special Range-2, New Delhi

ITA 6664/DEL/2019[2016-17]Status: DisposedITAT Delhi29 Aug 2025AY 2016-17

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…

Addl. CIT, Range- 2, New Delhi vs. Candor Gurgaon One Realty Projects Pvt. Ltd., New Delhi

ITA 4598/DEL/2019[2015-16]Status: DisposedITAT Delhi29 Aug 2025AY 2015-16

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…

Addl.CIT, Special Range-9, New Delhi vs. Candor Gurgaon Two Developers and Project Pvt Ltd, Mumbai

ITA 4597/DEL/2019[2015-16]Status: DisposedITAT Delhi29 Aug 2025AY 2015-16

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…

Candor Kolkata One Hi- Tech Structures Pvt. Ltd., Maharashtra vs. ACIT Spl. Rnage-2, New Delhi

ITA 3211/DEL/2019[2015-16]Status: DisposedITAT Delhi29 Aug 2025AY 2015-16

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…

Candor Gurgaon Two Developers & Project Pvt Ltd (Formerly Knwon As Unitech Developers and Projects Pvt. Ltd.), Delhi vs. Addl. CIT, Special Range- 2, New Delhi

ITA 3155/DEL/2019[2015-16]Status: DisposedITAT Delhi29 Aug 2025AY 2015-16

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…

Candor Gurgaon One Realty Projects Pvt. Ltd. (Formerly Known As Unitech Realty Projects Pvt. Ltd.), Mumbai vs. Addl. CIT, Range- 2, New Delhi

ITA 3154/DEL/2019[2015-16]Status: DisposedITAT Delhi29 Aug 2025AY 2015-16

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…

Avitel Post Studioz Limited, Mumbai vs. Deputy Commissioner of Income Tax, Circle 6(1)(2), Mumbai

ITA 5242/MUM/2024[2012-13]Status: DisposedITAT Mumbai24 Jul 2025AY 2012-13

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

Section 143(3)Section 148Section 37(1)

…ce is a standard compliance cost. The NFAC accepted a portion of this expenditure (Rs.3,92,852/-) as revenue in nature, and the balance is contested in this appeal. 22. Ld. Counsel strongly relied upon the principles laid down in Empire Jute Co. Ltd. v. CIT (124 ITR 1, SC), wherein it was held that even where some advantage may endure, if the expenditure facilitates day-to-day operations or enhances efficiency, it retains the character of revenue expenditure. The test of enduring benefit is not determinative unless it leads to creation or enhancement of a capital structure or asset. 23. In sum and substance, he…

Professional Automotives Private Limited, Jammu vs. Assistant Commissioner of Income Tax, Central Circle-1, Jaipur

In the result the appeal of the assessee in ITA no

ITA 812/JPR/2025[2016-17]Status: DisposedITAT Jaipur23 Jul 2025AY 2016-17

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI, आयकर अपील /ITA Nos.809 to 815/JP/2025 निर्धारण वर्ष /Assessment Years :2013-14 to 2019-20 Professional Automotives Pvt. बनाम ACIT, Ltd. Bahu Plaza, Bahu Plaza, Jammu Vs. Central Circle- 1, and Kashmir Jaipur स्थायी लेखा सं./जी.आई.आर. सं./PAN/GIR No.:AAACP9608E अपीलार्थी/Appellant प्र]त्यर्थी/Respondent निर्धारिती की ओर से / Assessee by :Shri Tarun Mittal, CA राजस्व की ओर से /Revenue by: Shri Ajey Malik, CIT (Th. V.C)

For Appellant: Shri Tarun Mittal, CAFor Respondent: Shri Ajey Malik, CIT (Th. V.C)
Section 143(3)Section 37(1)

…annot justifiably claim to put itself in the armchair of the businessman or in the position of the board of directors and assume the role to decide how much is reasonable expenditure having regard to the circumstances of the case. 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…

Professional Automotives Private Limited, Jammu vs. Assistant Commissioner of Income Tax, Centre Circle -1, Jaipur

ITA 810/JPR/2025[2014-15]Status: DisposedITAT Jaipur23 Jul 2025AY 2014-15
For Appellant: Shri Tarun Mittal, CAFor Respondent: Shri Ajey Malik, CIT (Th. V.C)
Section 143(3)Section 37(1)

…annot justifiably claim to put itself in the armchair of the businessman or in the position of the board of directors and assume the role to decide how much is reasonable expenditure having regard to the circumstances of the case. 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…

The ACIT, Cochin vs. M/S.Mfar Hotels & Resorts Ltd, Cochin

In the result, the appeal by the Revenue is dismissed

ITA 335/COCH/2015[2011-12]Status: DisposedITAT Cochin27 May 2025AY 2011-12

Bench: Shri Inturi Rama Rao & Shri Sandeep Singh Karhail: A.Y. : 2011-12 C.O. No. 13/Coch/2015 : A.Y. : 2011-12 (Arising Out Of Ita No. 335/Coch/15)

For Appellant: Shri Rajakannan, AdvFor Respondent: Shri Sanjit Kumar Das, CIT-DR
Section 250

…a shorter or longer period, it is immaterial. Therefore, character of expenditure is alone the deciding factor.” 17. Before concluding, we may also note the following findings of the Hon’ble Supreme Court in M/s Empire Jute Co Ltd v/s CIT, reported in [1980] 124 ITR 1 (SC): - “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 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 ma…

Torrent Energy Limited (Now Merged With Torrent Power Limited), Ahmedabad vs. The ACIT Circle 4(1)(1), Ahmedabad

The appeal of the assessee is allowed for statistical purposes

ITA 160/AHD/2023[2011-12]Status: DisposedITAT Ahmedabad21 May 2025AY 2011-12

Bench: Shri Siddhartha Nautiyal & Shri Makarand V.Mahadeokarasstt.Year : 2011-12 Torrent Energy Limited The Acit, Cir.4(1)(1) (Now Merged With Torrent Power Ltd) Ahmedabad. Samanvay, 600, Tapovan Ambawadi, Ahmedabad Pan : Aacct 8570 B (Applicant) (Responent) Assessee By : Shri Vartik Chokshi, Ar : Smt.Trupti Patel, Sr.Dr Revenue By सुनवाई क" तारीख/Date Of Hearing : 08/05/2025 घोषणा क" तारीख /Date Of Pronouncement: 21/05/2025 आदेश आदेश/O R D E R आदेश आदेश

For Appellant: Shri Vartik Chokshi, AR
Section 139(5)Section 142(1)Section 143(3)Section 250Section 251Section 254Section 32(1)(ii)Section 37(1)

…dated 19.03.2019. The CIT(A) shall examine the terms of the sub-lease deed, the nature and purpose of the expenditure, and the judicial precedents relied upon by the assessee including Sun Pharmaceuticals Industries Ltd. (supra), Empire Jute Co. Ltd. [(1980) 124 ITR 1 (SC)], and Madras Auto Service (P) Ltd. [(1998) 233 ITR 468 (SC)]. Adequate opportunity of hearing shall be afforded to the assessee, and a reasoned speaking order shall be passed in accordance with law. 21. Before parting, we deem it necessary to place on record our serious concern over the manner in which the lower authorities—both the Assessing…

Commissioner of Income Tax (International Taxation)-1, New Delhi vs. Genpact Services Llc

The appeal is dismissed

ITA - 133 / 2025HC Delhi07 May 2025
Section 271(1)(c)

…asset and the acquirer benefits from the same in the long term. 6.15 Therefore, claiming deduction as revenue in nature is principally wrong because the benefit is enduring in nature. However, the Supreme Court in the case of Empire Jute Co Ltd vs. CIT (1980) 124 ITR 1 ruled that there may be cases where the expenditure can be such that there could be an enduring benefit but the expenditure can still be classified as revenue expenditure. The test of enduring benefit in therefore is not certain or conclusive test and it cannot be applied blindly and mechanically without regard to the particular facts and circumsta…

Asst. Commissioner of Income-Tax, Central Circle-2(3), Bengaluru vs. Nalapad Properties, Bangalore

In the result, both appeals of the revenue are allowed for statistical purposes

ITA 1958/BANG/2024[2017-18]Status: DisposedITAT Bangalore24 Apr 2025AY 2017-18

Bench: Shri Laxmi Prasad Sahu & Shri Prakash Chand Yadavassessmentyear:2017-18

For Appellant: Sri V. Srinivasan, A.RFor Respondent: Sri Subramanian S., D.R
Section 153CSection 45(2)

…ck in trade has been actually sold by the assessee and not in the assessment year when the developer has got the OC/CC from the BBMP. At this time it is appropriate to take support from the judgement of Kolkata High Court in the case of CIT Vs. Dhanuka & Sons 124 ITR 1, where it has been held that profit & gains arising from shares transferred from trading account to investment account at prevailing market rate is not a transaction at all because a person have a transaction with himself and in turn such profit cannot be taxed. If such shares can be disposed at a value other than the value at which it was transfer…

Assistant Commissioner of Income Tax, Central Circle-1, Trichy vs. Vijay Dairy and Farm Products Private Limited, Musiri, Trichy

In the result, appeal filed by the Revenue is dismissed

ITA 483/CHNY/2024[2019-20]Status: DisposedITAT Chennai19 Mar 2025AY 2019-20

Bench: Shri Aby T. Varkey & Shrimanoj Kumar Aggarwal

For Appellant: Mr. N. Arjun Raj, AdvocateFor Respondent: Mr. Nilay Baran Som, CIT
Section 133ASection 143(3)Section 69A

…ts control over such asset. ost its control over such asset. 6.3.7 The Hon’ble Apex Court in the case of Empire Jute Co Ltd Vs. The Hon’ble Apex Court in the case of Empire Jute Co Ltd Vs. The Hon’ble Apex Court in the case of Empire Jute Co Ltd Vs. CIT-1980 124 ITR 1 (SC) has held that to treat a particular expenditure 1980 124 ITR 1 (SC) has held that to treat a particular expenditure 1980 124 ITR 1 (SC) has held that to treat a particular expenditure pertains to the character of revenue or capital, there does not exist an pertains to the character of revenue or capital, there does not exist an pertains to the…

Grasim Industries Ltd ( Corporate Finance Division), Mumbai vs. Addl CIT RG 6(3), Mumbai

ITA 3762/MUM/2009[2006-07]Status: DisposedITAT Mumbai25 Feb 2025AY 2006-07

Bench: the CIT(A). The CIT(A) partly allowed the appeal preferred by the Assessee vide order, dated 18/05/2009. 4. Not being satisfied with the relief granted by the Id. CIT(A), the Assessee has preferred appeal before this Tribunal. The Revenue has also filed cross-appeal challenging the relief granted by the Id. CIT(A).

For Appellant: Shri J. D. Mistry Sr. AdvocateFor Respondent: Shri Kishor Dhule
Section 143(2)Section 143(3)Section 24Section 43B

…IN THE INCOME TAX APPELLATE TRIBUNAL "G" BENCH, MUMBAI SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER Grasim Industries Limited, (Corporate Finance Division), A-2, Aditya Birla Centre, S.K. Ahire Marg, Worli, Mumbai – 400030. Maharashtra [PAN: AAACG4464B] …………. Appellant Additional Commissioner of Income Vs Tax, Range 6(3), 5th Floor, Room No.505, Aayakar Bhavan, …………. Respondent Mumbai – 400020. Assistant Commissioner of Income Tax Circle 6(3), Mumbai, Room No. 522, 5th Floor, Aayakar Bhavan, M.K. Road, Mumbai - 400020 …………. Appellant Grasim Industries Limited, Vs Century B…

Amit Kumar, Panipat Haryana vs. DCIT, NFAC (Delhi)

ITA 193/DEL/2024[2017-18]Status: DisposedITAT Delhi20 Feb 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…

Ags Transact Technologies Limited, Mumbai vs. DCIT Circle 6(1)(1), Aayakar Bhavan Mumbai

ITA 4653/MUM/2024[2020-2021]Status: DisposedITAT Mumbai17 Feb 2025AY 2020-2021

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary () Assessment Year: 2020-21 Ags Transact Technologies Dcit Circle 6(1)(1), Ltd., Aayakar Bhavan, Vs. 601-602, Trade World, B Wing Mumbai-400020. S.B. Marg, Lower Parel, Mumbai-400013. Pan No. Aaeca 0901 H Appellant Respondent

For Appellant: Mr. Dalpat ShahFor Respondent: 04/12/2024

…said view of the High Court is not in consonance counsel, the said view of the High Court is not in cons with the law laid by the this Court in Empire Jute Company with the law laid by the this Court in Empire Jute Company Ltd. v. Commissioner of Income Tax, 124 ITR 1; Commissioner Ltd. v. Commissioner of Income Tax , 124 ITR 1; Commissioner of Income Tax. Bombay Bombay-II v. Associated Cements Co. Ltd. . Associated Cements Co. Ltd., 172 ITR ITR 257 257 and and Alembic Alembic Chemical Chemical works Co. works Co. Ltd. Ltd. v. v. Commissioner of Income Tax. Gujarat, 177 ITR 377. Commissioner of Income Tax . Guja…

DCIT Circle 8, Pune vs. Mahle Anand Thermal Systems Pvt. Ltd, Pune

In the result, the appeal and the CO filed by the assessee are partly allowed and the appeals filed by the Revenue are dismissed

ITA 96/PUN/2024[2015-16]Status: DisposedITAT Pune22 Jan 2025AY 2015-16

Bench: Shri R. K. Panda & Ms. Astha Chandraassessment Year : 2014-15

For Appellant: Shri R D OnkarFor Respondent: Shri Amol Khairnar CIT-DR
Section 143(3)Section 35Section 35(1)(iv)

…purpose of facilitating the existing business of manufacturing of automotive components and enabling the management to conduct the business operations more efficiently and productively. The Hon'ble Supreme Court in the case of (i) Empire Jute Co. Ltd. v. CIT, 124 ITR 1 and (ii) Alembic Chemical Works Co. Ltd. v. CIT, 177 ITR 377 (SC) held that expenditure incurred on the existing business incurred in connection with the existing business. Updating existing products should be allowed as revenue expenditure. Keeping in view the principles laid down by the Hon'ble Karnataka High Court in the case of CIT vs. Tejas Ne…