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 366,421 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 CIT 8(1)(1), Mumbai vs. Reliance Fresh Realty Ltd, Mumbai

The appeals of the Revenue are dismissed

ITA 1160/MUM/2016[2010-11]Status: DisposedITAT Mumbai16 May 2018AY 2010-11

Bench: Shri G.S. Pannu & Shri Amarjit Singh: A.Y : 2010-11

For Respondent: Shri A. Mohan
Section 143(3)Section 37(1)

…ovide an enduring benefit to the business, the same is in revenue field and thus is liable to be treated as revenue expenditure. In this context, a gainful reference can be made to the judgment of the Hon'ble Supreme Court in the case of Empire Jute Co. Ltd., 124 ITR 1 (SC). Furthermore, it is nobody’s case that the expenditure in question, which we have already enumerated above, results in creation of any fixed or an enduring asset so as to be capitalised. Thus, the objections raised by the Assessing Officer, in our view, have been rightly negated by the CIT(A). M/s. Reliance Digital Retail Ltd. & Ors. 11. More…

Asst CIT 8(1)(1), Mumbai vs. Reliance Digital Retail Ltd, Mumbai

The appeals of the Revenue are dismissed

ITA 1159/MUM/2016[2010-11]Status: DisposedITAT Mumbai16 May 2018AY 2010-11

Bench: Shri G.S. Pannu & Shri Amarjit Singh: A.Y : 2010-11

For Respondent: Shri A. Mohan
Section 143(3)Section 37(1)

…ovide an enduring benefit to the business, the same is in revenue field and thus is liable to be treated as revenue expenditure. In this context, a gainful reference can be made to the judgment of the Hon'ble Supreme Court in the case of Empire Jute Co. Ltd., 124 ITR 1 (SC). Furthermore, it is nobody’s case that the expenditure in question, which we have already enumerated above, results in creation of any fixed or an enduring asset so as to be capitalised. Thus, the objections raised by the Assessing Officer, in our view, have been rightly negated by the CIT(A). M/s. Reliance Digital Retail Ltd. & Ors. 11. More…

DCIT Cen Cir 4(2) Cen RG 4, Mumbai vs. Samudra Developers P.Ltd, Mumbai

In the result, appeal filed by the revenue for assessment year 2012-2013

ITA 6642/MUM/2016[2012-13]Status: DisposedITAT Mumbai27 Apr 2018AY 2012-13

Bench: Shri G.S. Pannu (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2012-13 The Deputy Commissioner Of M/S Samudra Developers Pvt. Ltd., Income Tax, 4Th Floor, Hdil Towers, Central Circle-4(2), Anant Kanekar Marg, Central Range- 4, Vs. Mumbai – 400051 Room No. 1918, 19Th Floor, Air India Building, Pan: Aaacs7992J Nariman Point, Mumbai - 400021

For Appellant: Shri Nirav Vora (AR)For Respondent: Shri Saurabh Deshpande (Sr. DR)
Section 142Section 143

…(A) relying on the decision of the Hon’ble Delhi High Court in the case of Delhi Cloth and General Mills Company 8 Assessment Year: 2012-13 Ltd. 115 ITR 659 (Del) and the judgment of the Hon’ble Supreme Court delivered in Empire Jute Company Ltd. vs. CIT 124 ITR 1 (SC) and Alembic Chemicals Works Ltd. vs. CIT 177 ITR 377 (SC), deleted the addition made by the AO. The facts of the present case being identical, the Ld. CIT (A) consistent with his own findings aforesaid deleted the identical addition made by the AO in the present case. We further notice that the findings of the Ld. CIT (A) aforesaid has been up…

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

…oods 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 the case before the Hon’ble Supreme Court was that the Assessee was a manufacturer of jute and a member of the Indian Jute Mills Association. The Association resolved that all members of the Association will work only specified hours. The Associa…

M/S Hilton Roulunds Ltd vs. Commissioner of Income Tax

ITA/325/2005HC Delhi20 Apr 2018

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…that technical knowledge available the Swiss Company did not part with any asset of its business nor did the assessee acquired any asset or advantage of an enduring nature for the benefit of its business.” 17. In Empire Jute Company Ltd. v. CIT, (1980)124 ITR 1 (SC), which was a case dealing with purchase of loomhours (number of working hours on the loom), the Supreme Court observed as under: ITA 325 2005 Page 15 of 30 “The decided cases have, from time to time, evolved va…

Hdfc Securities Ltd, Mumbai vs. DCIT 4(1), Mumbai

In the result, appeal of the assessee is allowed in terms indicated hereinabove whereas appeal of the Revenue is dismissed

ITA 738/MUM/2016[2011-12]Status: DisposedITAT Mumbai16 Apr 2018AY 2011-12

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm M/S. Hdfc Securities Ltd., Vs. Dcit – 4(1) Office Floor 8 Mumbai I-Think Techno Campus Alpha Building, B Kanjurmarg (E) Mumbai – 400 042 Pan/Gir No.Aaach8215R Appellant) Respondent) .. Dcit – 4(1) (1) Vs. M/S. Hdfc Securities Ltd., Mumbai Office Floor 8 I-Think Techno Campus Alpha Building, B Kanjurmarg (E) Mumbai – 400 042 Pan/Gir No. Aaach8215R Appellant) Respondent) .. Assessee By Ms. Krupa R. Gandhi / Shri Vidhi Doshi Revenue By Shri Rajat Mittal

Section 133ASection 143(3)Section 194JSection 40

…of expenditure incurred on repairs and maintenance, we found that same is revenue in nature. Principle has been laid down in the following judicial pronouncements for determining the nature of expenditure as capital and revenue.  Empire jute Co. Ltd. v.CIT (124 ITR 1(1980) (SC)  CIT vs. Mahalakshmi Textiles Mills Limited (66 ITR 710)(SC)  CIT V. Chowgule and Co. Pvt. Lid. (214 ITR 523) (Bom)  New Shorrock Spg. & Mfg. Co. Ltd, v. CIT (1956) (30 ITR 338) (Bom)  PCIT v. Sesa Resources Ltd. (250 Taxman 182) (Bom)  CIT vs. Southern Roadways Ltd. (304 ITR 84(Mad)(HC)  Commissioner of Income-tax vs. MAC Charles…

Larsen & Toubro Ltd, Mumbai vs. Asst CIT Cir 2(2), Mumbai

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

ITA 6257/MUM/2011[1999-00]Status: DisposedITAT Mumbai28 Mar 2018AY 1999-00

Bench: Shri Mahavir Singh () & Shri N.K. Pradhan () Assessment Year: 1999-00 Larsen & Toubro Ltd. Dcit-2(2) Taxation Department L&T Room No. 577, 5Th Vs. House, N.M. Ballard Estate, Floor, Aayakar Mumbai-400001 Bhavan, M.K. Road Mumbai-400020. Pan No. Aaacl0140P Appellant Respondent Assessment Year: 1999-00 Dcit-2(2) Larsen & Toubro Ltd. Room No. 577, 5Th Floor, Taxation Department Vs. Aayakar Bhavan, M.K. L&T House, N.M. Road Ballard Estate, Mumbai-400020. Mumbai-400001 Pan No. Aaacl0140P Appellant Respondent Assessee By : Mr. J.D. Mistry & Mr. Madhur Agarwal, Ar Revenue By : Mr. Anadi Varma, Cit-Dr Date Of Hearing : 14/02/2018 Date Of Pronouncement : 28/03/2018

For Appellant: Mr. J.D. Mistry &For Respondent: Mr. Anadi Varma, CIT-DR
Section 143(3)Section 145A

…ith the reasons given by the AO and relying on the order of the ITAT ‘J’ Bench in assessee’s own case for the AY 1993-94 dismissed the appeal filed by the assessee. 8.3 Before us, the Ld. counsel of the assessee rely on the decision in Empire Jute Co.’s (SC) [124 ITR 1] Raychem RPG Ltd. (21 taxmann.com 507) (Bom.) (2012), Torrent Pharmaceuticals Ltd. [137 ITD 301], KSB Pumps Ltd. [75 taxmann.com 184] (Bom.) and Asahi India Safety Glass Ltd. (15 taxmann.com 282) (Del.). On the other hand, the Ld. DR supports the order passed by the Ld. CIT(A). 8.4 We have heard the rival submissions, and perused the relevant mater…

ACIT, C-3(1), Chandigarh vs. M/S Durga Jewellers, Chandigarh

In the result appeal of the Revenue is dismissed

ITA 1027/CHANDI/2017[2012-13]Status: DisposedITAT Chandigarh08 Mar 2018AY 2012-13

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2012-13

For Appellant: NoneFor Respondent: Smt. Chandrakanta
Section 148

…IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES ‘A’ CHANDIGARH BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER Assessment Year: 2012-13 The Asst. CIT Vs. M/s Durga Jewellers Circle-3(1) SCO-40, Pocket No. 1 Chandigarh Manimajra, Chandigarh PAN No. AAFFD5537N (Appellant) (Respondent) Assessee By : None Department By : Smt. Chandrakanta Date of hearing : 14/12/2017 Date of Pronouncement: 08/03/2018 ORDER PER DR. B.R.R. KUMAR, A.M: The present appeal has been filed by the Revenue against the order of the Ld. CIT(A)-1, Chandigarh dt. 08/03/2017. 2. The Revenue has rais…

ACIT, Namakkal vs. Jansons Industries Limited, Namakkal

In the result, all the three appeals filed by the Revenue stand dismissed

ITA 615/CHNY/2017[2012-13]Status: DisposedITAT Chennai08 Feb 2018AY 2012-13

Bench: Shri N.R.S. Ganesan & Shri M. Balaganeshआयकर अपील सं./Ita Nos.613, 614 & 615/Mds/2017 "नधा"रण वष" / Assessment Years : 2009-10, 2010-11 & 2012-13

For Appellant: Smt. C. Yamuna, JCITFor Respondent: Shri T.S. Subramaniam, CA
Section 37

…आयकर अपील"य अ"धकरण, ‘बी’ "यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI "ी एन.आर.एस. गणेशन, "या"यक सद"य एवं "ी एम. बालगणेश, लेखा सद"य केसम" BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.613, 614 & 615/Mds/2017 "नधा"रण वष" / Assessment Years : 2009-10, 2010-11 & 2012-13 The Assistant Commissioner of M/s Jansons Industries Ltd., Income Tax, v. No.129, SND Road, Circle – 1, Tiruchangode, Namakkal. Namakkal Dt. – 637 211. PAN : AAACJ 5438 J (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant by : Smt. C. Yamuna,…

ACIT, Namakkal vs. Jansons Industries Limited, Namakkal

In the result, all the three appeals filed by the Revenue stand dismissed

ITA 614/CHNY/2017[2009-10]Status: DisposedITAT Chennai08 Feb 2018AY 2009-10

Bench: Shri N.R.S. Ganesan & Shri M. Balaganeshआयकर अपील सं./Ita Nos.613, 614 & 615/Mds/2017 "नधा"रण वष" / Assessment Years : 2009-10, 2010-11 & 2012-13

For Appellant: Smt. C. Yamuna, JCITFor Respondent: Shri T.S. Subramaniam, CA
Section 37

…आयकर अपील"य अ"धकरण, ‘बी’ "यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI "ी एन.आर.एस. गणेशन, "या"यक सद"य एवं "ी एम. बालगणेश, लेखा सद"य केसम" BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.613, 614 & 615/Mds/2017 "नधा"रण वष" / Assessment Years : 2009-10, 2010-11 & 2012-13 The Assistant Commissioner of M/s Jansons Industries Ltd., Income Tax, v. No.129, SND Road, Circle – 1, Tiruchangode, Namakkal. Namakkal Dt. – 637 211. PAN : AAACJ 5438 J (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant by : Smt. C. Yamuna,…

ACIT, Namakkal vs. Jansons Industries Limited, Namakkal

In the result, all the three appeals filed by the Revenue stand dismissed

ITA 613/CHNY/2017[2009-10]Status: DisposedITAT Chennai08 Feb 2018AY 2009-10

Bench: Shri N.R.S. Ganesan & Shri M. Balaganeshआयकर अपील सं./Ita Nos.613, 614 & 615/Mds/2017 "नधा"रण वष" / Assessment Years : 2009-10, 2010-11 & 2012-13

For Appellant: Smt. C. Yamuna, JCITFor Respondent: Shri T.S. Subramaniam, CA
Section 37

…आयकर अपील"य अ"धकरण, ‘बी’ "यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI "ी एन.आर.एस. गणेशन, "या"यक सद"य एवं "ी एम. बालगणेश, लेखा सद"य केसम" BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.613, 614 & 615/Mds/2017 "नधा"रण वष" / Assessment Years : 2009-10, 2010-11 & 2012-13 The Assistant Commissioner of M/s Jansons Industries Ltd., Income Tax, v. No.129, SND Road, Circle – 1, Tiruchangode, Namakkal. Namakkal Dt. – 637 211. PAN : AAACJ 5438 J (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant by : Smt. C. Yamuna,…

Total Lubricants India Ltd ( Now Known As Total Oil India P. Ltd ), Mumbai vs. DCIT 8(3), Mumbai

In the result, appeal filed by the assessee in ITA o

ITA 7021/MUM/2011[2004-05]Status: DisposedITAT Mumbai24 Jan 2018AY 2004-05

Bench: Shri C.N. Prasad () & Shri G Manjunatha ()

Section 143(2)Section 143(3)Section 147Section 148

…ich are all in the nature of recurring expenditure. Therefore, the same cannot be considered as capital expenditure which gave enduring benefit to the assessee. The Ld.AR, in this regard, relied upon the following judgements :- 1.Empire Jute Co. td vs CIT 124 ITR 1 (SC) 2. Ewac Alloys vs DCIT 42 ITD 218 (Mum) 3. CIT vs Thakur Tobacco Products Ltd 87 TTJ 306 (Pune) 4. CIT vs Brilliant Tutorial Private Ltd 292 ITR 399 (Mad) 15. We have heard both the parties, perused the materials available on record and gone through the orders of authorities below. The AO disallowed energy project expenses on the ground t…

Knight Riders Sports P. Ltd, Mumbai vs. Asst CIT Cen Cir 29, Mumbai

The appeal of the assessee is partly allowed in terms of our aforesaid observations

ITA 1307/MUM/2013[2009-10]Status: DisposedITAT Mumbai29 Dec 2017AY 2009-10

Bench: Shri G.S.Pannu, Am & Shri Ravish Sood, Jm M/S Knight Riders Sports Acit, Central Circle-29, Private Limited, Deepvan बिधम/ Mumbai. Anand Vihar Society, 20Th Vs. Road, Khar (W), Mumbai-400 052 स्थामी रेखा सं./ जीआइआय सं./ Pan No. Aadck3118M (अऩीराथी /Appellant) (प्रत्मथी / Respondent) :

For Appellant: Mr. J.D. Mistry, A.RFor Respondent: Mr. Rajesh Yadav, D.R
Section 143(3)Section 250Section 32(1)(ii)Section 37(1)

…n everlasting nature it should P a g e | 9 ITA No.1307/Mum/2013 AY: 2009-10 Knight Riders Sports Private Limited Vs. ACIT-Central Circle-29 not also be so transitory and ephemeral that it can come to an end at any time.  Empire Jute Company Limited vs. CIT (124 ITR 1) (SC) The Honorable Supreme Court has in this case laid down the principles to be applied in determining whether an expense is capital or revenue in nature. The broad principles as per this decision and their applicability are as follows: “If any enduring advantage is obtained, it is not necessary that in every case the expenditure for securing it…

DCIT, New Delhi vs. M/S. Delhi International Airport Pvt. Ltd., New Delhi

In the result appeal of the revenue in ITA No

ITA 4202/DEL/2013[2007-08]Status: DisposedITAT Delhi14 Dec 2017AY 2007-08

Bench: Shri Amit Shukla & Shri Prashant Maharishiassessment Year: 2007-08 Acit, Vs. M/S. Delhi International Airport Pvt. Ltd. Circle 10(1) Udaan Bhawan, Terminal 1B, New Delhi Indira Gandhi International Airport, New Delhi. Pan No. Aaccd3570F (Appellant) (Respondent) Assessment Year: 2007-08 Dcit, Vs. M/S. Delhi International Airport Pvt. Ltd. Circle 10(1) Udaan Bhawan, Terminal 1B, New Delhi Indira Gandhi International Airport, New Delhi. Pan No. Aaccd3570F (Appellant) (Respondent) Co No. 226/Del/2011 (Arising Ita No.2720/Del/2011) Assessment Year: 2007-08

For Appellant: Shri S.E. Dastur, Sr. Advocate and Shri Ankit Agrawal, CAFor Respondent: Ms. Rachna Singh, CIT(DR)
Section 143(3)Section 271(1)(c)Section 80I

…). In support of such a claim that it is in the nature of rent and allowable as revenue expenditure in the year in which it is claimed, the assessee relied upon the following decisions:- i. Decision of Hon’ble Supreme Court in the case of Empire Jute’s case (124 ITR 1). ii. CIT v Madras Auto Services P. Ltd. (1998) 233 ITR 468. iii. Assam Bengal Cement Co. Ltd. v. CIT (1955) 27 ITR 34. iv. CIT V HMT Ltd. 203 ITR 820. v. CIT v. Gemini Arts P Ltd. (2002) 254 ITR 201 (Mad.) vi. CIT vs. Madras Auto Service P. Ltd. (1998) 233 ITR 468. vii. CIT vs. Ucal Fuel Systems Ltd. 296 ITR 702. viii. Amway India Enterprises v DC…

ACIT, New Delhi vs. M/S Delhi International Airport Pvt. Ltd., New Delhi

In the result appeal of the revenue in ITA No

ITA 2720/DEL/2011[2007-08]Status: DisposedITAT Delhi14 Dec 2017AY 2007-08

Bench: Shri Amit Shukla & Shri Prashant Maharishiassessment Year: 2007-08 Acit, Vs. M/S. Delhi International Airport Pvt. Ltd. Circle 10(1) Udaan Bhawan, Terminal 1B, New Delhi Indira Gandhi International Airport, New Delhi. Pan No. Aaccd3570F (Appellant) (Respondent) Assessment Year: 2007-08 Dcit, Vs. M/S. Delhi International Airport Pvt. Ltd. Circle 10(1) Udaan Bhawan, Terminal 1B, New Delhi Indira Gandhi International Airport, New Delhi. Pan No. Aaccd3570F (Appellant) (Respondent) Co No. 226/Del/2011 (Arising Ita No.2720/Del/2011) Assessment Year: 2007-08

For Appellant: Shri S.E. Dastur, Sr. Advocate and Shri Ankit Agrawal, CAFor Respondent: Ms. Rachna Singh, CIT(DR)
Section 143(3)Section 271(1)(c)Section 80I

…). In support of such a claim that it is in the nature of rent and allowable as revenue expenditure in the year in which it is claimed, the assessee relied upon the following decisions:- i. Decision of Hon’ble Supreme Court in the case of Empire Jute’s case (124 ITR 1). ii. CIT v Madras Auto Services P. Ltd. (1998) 233 ITR 468. iii. Assam Bengal Cement Co. Ltd. v. CIT (1955) 27 ITR 34. iv. CIT V HMT Ltd. 203 ITR 820. v. CIT v. Gemini Arts P Ltd. (2002) 254 ITR 201 (Mad.) vi. CIT vs. Madras Auto Service P. Ltd. (1998) 233 ITR 468. vii. CIT vs. Ucal Fuel Systems Ltd. 296 ITR 702. viii. Amway India Enterprises v DC…

DCIT, Cir-11(1), Kolkata vs. M/S Alliance Broad Band Services Pvt. Ltd., Kolkata

In the result, the appeal of the revenue is dismissed

ITA 1318/KOL/2015[2010-2011]Status: DisposedITAT Kolkata06 Dec 2017AY 2010-2011

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri M.Balaganesh, Am ] I.T.A No. 1318/Kol/2015 Assessment Year : 2010-11 Dcit, Circle-11(1), Kolkata -Vs- M/S Alliance Broad Band Services Pvt. Ltd. [Pan: Aaeca 3151 B] (Appellant) (Respondent)

For Appellant: Shri David Z. Chowngthu, Addl. CIT, Sr. DRFor Respondent: Shri S.P. Datta, Advocate
Section 143(3)Section 37(1)

…case laws relied upon by the ld AR on the Hon’ble Madras High Court and Hon’ble Delhi High Court supra squarely applies to the case of the assessee. We also find that the decision of the Hon’ble Supreme Court in the case of Empire Jute Co. vs CIT reported in 124 ITR 1 (SC) , where their Lordships had duly distinguished the enduring benefit in the revenue field and enduring benefit in the capital field. They had held that pursuant to incurrence of expenses , if there is some enduring benefit in the revenue field , then the same would only amount to revenue expenditure. We hold that the expenditure incurred by the…

ACIT, New Delhi vs. M/S. Denso India Ltd., New Delhi

In the result ground No. 4 and 5 of the appeal of the revenue are dismissed

ITA 4365/DEL/2011[2005-06]Status: DisposedITAT Delhi05 Dec 2017AY 2005-06

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi

For Appellant: Shri Kanchal Kaushal, CAFor Respondent: Shri Amrendra Kumar, CIT DR
Section 92C

…ployees in India as it facilitated the assessee's trading and manufacturing operation in India under agreement with Denso Corporation, Japan. After considering the verdict of Hon'ble High Court reported at 159 ITR 673 (2003-TIOL-278-HC-KOL-IT), 160 ITR 35 and 124 ITR 1 (2002- TIOL-238-SC-IT), the CIT(A) deleted the addition and held that assessee has incurred the above expenditure for training of its employees which facilitated the assessee's trading operation to be carried on more efficiently or more profitably. No interference is required in the order of the CIT(A) for deleting the disallowance of expenditure i…

ACIT, New Delhi vs. M/S Denso India Ltd., New Delhi

In the result ground No. 4 and 5 of the appeal of the revenue are dismissed

ITA 1751/DEL/2011[2004-05]Status: DisposedITAT Delhi05 Dec 2017AY 2004-05

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi

For Appellant: Shri Kanchal Kaushal, CAFor Respondent: Shri Amrendra Kumar, CIT DR
Section 92C

…ployees in India as it facilitated the assessee's trading and manufacturing operation in India under agreement with Denso Corporation, Japan. After considering the verdict of Hon'ble High Court reported at 159 ITR 673 (2003-TIOL-278-HC-KOL-IT), 160 ITR 35 and 124 ITR 1 (2002- TIOL-238-SC-IT), the CIT(A) deleted the addition and held that assessee has incurred the above expenditure for training of its employees which facilitated the assessee's trading operation to be carried on more efficiently or more profitably. No interference is required in the order of the CIT(A) for deleting the disallowance of expenditure i…

Media Features (India) Pvt. Ltd., New Delhi vs. ITO, Ward- 16(3), New Delhi

In the result, the appeal of the assessee in ITA No

ITA 4682/DEL/2017[2012-13]Status: DisposedITAT Delhi29 Nov 2017AY 2012-13

Bench: Shri B.P. Jain

For Appellant: Shri S.K. Chaturvedi, CAFor Respondent: Shri Atiq Ahmed Sr. DR
Section 192Section 194JSection 40Section 40A(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘SMC’ BENCH, NEW DELHI BEFORE SHRI B.P. JAIN, ACCOUNTANT MEMBER ITA No. 4682/DEL/2017 [A.Y. 2012-13] M/s Media Features [India] Pvt. ltd Vs. The I.T.O 11/5B, param Tower, 2nd Floor Ward 16(3) Pusa Road, New Delhi New Delhi PAN : AADCM 3904 D [Appellant] [Respondent] Date of Hearing : 27.11.2017 Date of Pronouncement : 29 .11.2017 Assessee by : Shri S.K. Chaturvedi, CA Revenue by : Shri Atiq Ahmed Sr. DR ORDER This appeal of the assessee arises from the order of the ld. CIT(A)- 38, Delhi vide order dated 31.05.2017 for A.Y. 2012-13. 2. The assessee has raised th…

M/S Gkn Driveline India Ltd, N vs. Commissioner of Income Tax, De

The appeal is dismissed with no orders as to costs

ITA/542/2005HC Delhi27 Nov 2017

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MS. JUSTICE PRATHIBA M. SINGH

Section 260A

…ted competition in the two wheeler business for a while. Eicher Ltd (supra) clearly holds that if the advantage is of an enduring nature, then it could be a capital expenditure. 18. The test laid down by the Supreme Court in Empire Jute Co. Ltd Vs. CIT [1980] 124 ITR 1 (SC), to determine as to whether a particular expenditure is capital or revenue in nature is also applied in Eicher Ltd (supra) as also Sharp Business System (supra). It is clear that the consideration of Rs.70 lakhs was not expressly towards the non-compete obligation, but towards smoothening the process of acquisition of the asset, i.e., the unit…