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 366,339 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

Deepak Classes Vile Parle (P) Ltd, Mumbai vs. ITO 5(1)(3), Mumbai

In the result, all the four appeals filed by the assessee for the assessment year 2000-01 are allowed

ITA 5478/MUM/2009[2000-01]Status: DisposedITAT Mumbai09 Jun 2016AY 2000-01

Bench: Shri B.R.Baskaran (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2000-01

For Appellant: Shri. S.C.TiwariFor Respondent: Shri. B.S.Bist

…he agreement was entered into just to safeguard commercial interest of the assessee and bona fide of payment has been verified. The Ld. AR further submitted that in the light of ratio laid down by the Hon’ble Supreme Court in the case of Empire Jute Com. Ltd. 124 ITR 1, the finding of the Ld. CIT(A) are erroneous and liable to be set aside. On the other hand the Ld. DR relying on the finding of the authorities below submitted that there is no legal infirmity in the impugned order to interfere with the same. The Ld. CIT(A) has passed the order in accordance with the principles of law laid down by the Hon’ble Supre…

Deepak Classes Malad (P) Ltd, Mumbai vs. ITO 5(1)(3), Mumbai

In the result, all the four appeals filed by the assessee for the assessment year 2000-01 are allowed

ITA 5477/MUM/2009[2000-01]Status: DisposedITAT Mumbai09 Jun 2016AY 2000-01

Bench: Shri B.R.Baskaran (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2000-01

For Appellant: Shri. S.C.TiwariFor Respondent: Shri. B.S.Bist

…he agreement was entered into just to safeguard commercial interest of the assessee and bona fide of payment has been verified. The Ld. AR further submitted that in the light of ratio laid down by the Hon’ble Supreme Court in the case of Empire Jute Com. Ltd. 124 ITR 1, the finding of the Ld. CIT(A) are erroneous and liable to be set aside. On the other hand the Ld. DR relying on the finding of the authorities below submitted that there is no legal infirmity in the impugned order to interfere with the same. The Ld. CIT(A) has passed the order in accordance with the principles of law laid down by the Hon’ble Supre…

Deepak Classes Borivali (P) Ltd, Mumbai vs. ITO 5(1)(3), Mumbai

In the result, all the four appeals filed by the assessee for the assessment year 2000-01 are allowed

ITA 5106/MUM/2009[2000-01]Status: DisposedITAT Mumbai09 Jun 2016AY 2000-01

Bench: Shri B.R.Baskaran (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2000-01

For Appellant: Shri. S.C.TiwariFor Respondent: Shri. B.S.Bist

…he agreement was entered into just to safeguard commercial interest of the assessee and bona fide of payment has been verified. The Ld. AR further submitted that in the light of ratio laid down by the Hon’ble Supreme Court in the case of Empire Jute Com. Ltd. 124 ITR 1, the finding of the Ld. CIT(A) are erroneous and liable to be set aside. On the other hand the Ld. DR relying on the finding of the authorities below submitted that there is no legal infirmity in the impugned order to interfere with the same. The Ld. CIT(A) has passed the order in accordance with the principles of law laid down by the Hon’ble Supre…

Deepak Classes Dadar (P) Ltd, Mumbai vs. ITO 5(1)(3), Mumbai

In the result, all the four appeals filed by the assessee for the assessment year 2000-01 are allowed

ITA 5105/MUM/2009[2000-01]Status: DisposedITAT Mumbai09 Jun 2016AY 2000-01

Bench: Shri B.R.Baskaran (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2000-01

For Appellant: Shri. S.C.TiwariFor Respondent: Shri. B.S.Bist

…he agreement was entered into just to safeguard commercial interest of the assessee and bona fide of payment has been verified. The Ld. AR further submitted that in the light of ratio laid down by the Hon’ble Supreme Court in the case of Empire Jute Com. Ltd. 124 ITR 1, the finding of the Ld. CIT(A) are erroneous and liable to be set aside. On the other hand the Ld. DR relying on the finding of the authorities below submitted that there is no legal infirmity in the impugned order to interfere with the same. The Ld. CIT(A) has passed the order in accordance with the principles of law laid down by the Hon’ble Supre…

Ge Capital Services India vs. Addl CIT Range 2

In the result, the appeals of the assessee and Revenue are partly allowed for

ITA 2898/DEL/2007[2000-2001]Status: DisposedITAT Delhi06 Jun 2016AY 2000-2001

Bench: Smt Diva Singh & Sh.L.P.Sahu

Section 14ASection 234DSection 45J

…07 5. In CIT vs. Citi Financial Consumer Fin. Ltd. (20ll) 335 ITR 29 (Del.), a Division Bench referred to Industrial Finance Corp. of India (supra) and then quote a passage from the decision of the Supreme Court in CIT Vs. Empire Jute Co. Ltd. vs. CIT (1980) 124 ITR 1 (SC): 13. At this stage, it would be of advantage to discuss the judgment of Supreme Court 111 Empire Jute (1980) 124 ITR 1 (SC) which repelled the theory of expenditure of enduring nature, in a great measure. In that case, the SC noted that by decided cases, the courts evolved various tests for distinguishing " between the capital and revenue expe…

DCIT Circle 12 (1) vs. G.E. Capital Services India

In the result, the appeals of the assessee and Revenue are partly allowed for

ITA 2808/DEL/2007[2001-2002]Status: DisposedITAT Delhi06 Jun 2016AY 2001-2002

Bench: Smt Diva Singh & Sh.L.P.Sahu

Section 14ASection 234DSection 45J

…07 5. In CIT vs. Citi Financial Consumer Fin. Ltd. (20ll) 335 ITR 29 (Del.), a Division Bench referred to Industrial Finance Corp. of India (supra) and then quote a passage from the decision of the Supreme Court in CIT Vs. Empire Jute Co. Ltd. vs. CIT (1980) 124 ITR 1 (SC): 13. At this stage, it would be of advantage to discuss the judgment of Supreme Court 111 Empire Jute (1980) 124 ITR 1 (SC) which repelled the theory of expenditure of enduring nature, in a great measure. In that case, the SC noted that by decided cases, the courts evolved various tests for distinguishing " between the capital and revenue expe…

DCIT, Chennai vs. Rm.K.V.Textiles, Tirunelveli

In the result, appeals of the assessee in I

ITA 1874/CHNY/2014[2009-10]Status: DisposedITAT Chennai01 Jun 2016AY 2009-10

Bench: Shri N.R.S. Ganesan & Shri A. Mohan Alankamonyआयकर अपील सं./Ita Nos.1781, 1782 & 1783/Mds/2014 "नधा"रण वष" / Assessment Years : 2007-08, 2008-09 & 2009-10

For Appellant: Sh. R. Vijayaraghavan, AdvocateFor Respondent: Sh. Pathlavath Peerya, CIT

…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 "ी ए. मोहन अलंकामणी, लेखा सद"य केसम" BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.1781, 1782 & 1783/Mds/2014 "नधा"रण वष" / Assessment Years : 2007-08, 2008-09 & 2009-10 M/s Rm.K.V. Textiles, C/o M/s Subbaraya Aiyar, Padmanabhan & Ramamani, The Deputy Commissioner of Advocates, v. Income Tax, New No.75A (Old No.105A), Central Circle – IV(1), Dr. Radhakrishnan Salai, Chennai - 600 034. Mylapore, Chennai - 600 004.…

Rm.K.V.Textiles, Chennai vs. DCIT, Chennai

In the result, appeals of the assessee in I

ITA 1783/CHNY/2014[2009-10]Status: DisposedITAT Chennai01 Jun 2016AY 2009-10

Bench: Shri N.R.S. Ganesan & Shri A. Mohan Alankamonyआयकर अपील सं./Ita Nos.1781, 1782 & 1783/Mds/2014 "नधा"रण वष" / Assessment Years : 2007-08, 2008-09 & 2009-10

For Appellant: Sh. R. Vijayaraghavan, AdvocateFor Respondent: Sh. Pathlavath Peerya, CIT

…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 "ी ए. मोहन अलंकामणी, लेखा सद"य केसम" BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.1781, 1782 & 1783/Mds/2014 "नधा"रण वष" / Assessment Years : 2007-08, 2008-09 & 2009-10 M/s Rm.K.V. Textiles, C/o M/s Subbaraya Aiyar, Padmanabhan & Ramamani, The Deputy Commissioner of Advocates, v. Income Tax, New No.75A (Old No.105A), Central Circle – IV(1), Dr. Radhakrishnan Salai, Chennai - 600 034. Mylapore, Chennai - 600 004.…

Rm.K.V.Textiles, Chennai vs. DCIT, Chennai

In the result, appeals of the assessee in I

ITA 1782/CHNY/2014[2008-09]Status: DisposedITAT Chennai01 Jun 2016AY 2008-09

Bench: Shri N.R.S. Ganesan & Shri A. Mohan Alankamonyआयकर अपील सं./Ita Nos.1781, 1782 & 1783/Mds/2014 "नधा"रण वष" / Assessment Years : 2007-08, 2008-09 & 2009-10

For Appellant: Sh. R. Vijayaraghavan, AdvocateFor Respondent: Sh. Pathlavath Peerya, CIT

…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 "ी ए. मोहन अलंकामणी, लेखा सद"य केसम" BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.1781, 1782 & 1783/Mds/2014 "नधा"रण वष" / Assessment Years : 2007-08, 2008-09 & 2009-10 M/s Rm.K.V. Textiles, C/o M/s Subbaraya Aiyar, Padmanabhan & Ramamani, The Deputy Commissioner of Advocates, v. Income Tax, New No.75A (Old No.105A), Central Circle – IV(1), Dr. Radhakrishnan Salai, Chennai - 600 034. Mylapore, Chennai - 600 004.…

Rm.K.V.Textiles, Chennai vs. DCIT, Chennai

In the result, appeals of the assessee in I

ITA 1781/CHNY/2014[2007-08]Status: DisposedITAT Chennai01 Jun 2016AY 2007-08

Bench: Shri N.R.S. Ganesan & Shri A. Mohan Alankamonyआयकर अपील सं./Ita Nos.1781, 1782 & 1783/Mds/2014 "नधा"रण वष" / Assessment Years : 2007-08, 2008-09 & 2009-10

For Appellant: Sh. R. Vijayaraghavan, AdvocateFor Respondent: Sh. Pathlavath Peerya, CIT

…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 "ी ए. मोहन अलंकामणी, लेखा सद"य केसम" BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.1781, 1782 & 1783/Mds/2014 "नधा"रण वष" / Assessment Years : 2007-08, 2008-09 & 2009-10 M/s Rm.K.V. Textiles, C/o M/s Subbaraya Aiyar, Padmanabhan & Ramamani, The Deputy Commissioner of Advocates, v. Income Tax, New No.75A (Old No.105A), Central Circle – IV(1), Dr. Radhakrishnan Salai, Chennai - 600 034. Mylapore, Chennai - 600 004.…

Red Chillies Entertainment P.Ltd, Mumbai vs. ACIT Cen Cir 29, Mumbai

In the result, assessee’s appeal for A

ITA 5271/MUM/2013[2010-11]Status: DisposedITAT Mumbai31 May 2016AY 2010-11

Bench: Shri Saktijit Dey & Shri Rajesh Kumar

For Appellant: Shri Hiru RaiFor Respondent: Shri B.S. Bist

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA no.5271/Mum./2013 (Assessment Year : 2010–11) Red Chillies Entertainment Pvt. Ltd. Plot no.612, Junction of Ram Krishna Mission Road & 15th Cross Road ……………. Appellant Santacruz (W), Mumbai 400 054 PAN – AACCR2518P v/s Asstt. Commissioner of Income Tax Central Circle–29, Aayakar Bhawan ……………. Respondent 101, M.K. Road, Mumbai 400 020 ITA no.1577/Mum./2013 (Assessment Year : 2009–10) Red Chillies Entertainment Pvt. Ltd. Plot no.612, Junction of Ram Krishna Mission Road &…

M/S. Gujarat Ambuja Cements Ltd vs. The Dy CIT RG 3(1)

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

ITA 2486/MUM/2005[1999-2000]Status: DisposedITAT Mumbai30 May 2016AY 1999-2000

Bench: Shri D.Karunakara Rao & Shri Pawan Singhassessment Year: 1999-2000 Gujarat Ambuja Cements Limited, Dcit Range 3(1), 122, Maker Chambers, Iii, Aayakar Bhavan, M.K. Road, Vs. Mumbai-400020. Nariman Point, Mumbai-400021. Pan: Aaacg0569P (Appellant) (Respondent) Assessment Year: 1999-2000 Dcit Range 3(1), Gujarat Ambuja Cements Limited, Aayakar Bhavan, M.K. Road, 122, Maker Chambers, Iii, Vs. Mumbai-400020. Nariman Point, Mumbai-400021. Pan: Aaacg0569P (Appellant) (Respondent)

For Respondent: Shri Yashwant Kumar Bhaskar
Section 115JSection 145ASection 244A

…ed counsel, these items are covered by following decisions:- a) ITA No. 2690/M/93 vide its order dated 20.12.2002 for assessment year 1989-90. b) ITA No. 2419/M/94 vide its order dated 4.8.2003 for assessment year 90-91. c) Empire Jute Co. Ltd. Vs. CIT (1980) 124 ITR 1 (SC). d) CIT Vs. Ananda Bazar Patrika (P) Ltd. (1990) 184 ITR 542 (cal). e) CIT vs. Berger Paints (India) Ltd. (No.s 2) (2002) 254 ITR 503 (cal). Vide para 17.3 of its order dated 20.12.2002, the Tribunal for the assessment year 89-90 in ITA No. 2690/M/93heldas under: “17.3 We have considered the rival submissions in the light of material placed be…

DCIT, New Delhi vs. M/S Spice Communication Ltd., Noida

In the result, the appeal in ITA No

ITA 988/DEL/2011[2006-07]Status: DisposedITAT Delhi25 May 2016AY 2006-07

Bench: Sh. I.C. Sudhir & Sh. O.P. Kantassessment Year: 2006-07 Deputy Commissioner Of Income Vs. M/S. Spice Communication Ltd., Tax, Circle 9(1), Room No. 163, C/O- Idea Cellular Ltd., A-68, C.R. Building, New Delhi Sector-64, Noida. Gir/Pan : Aagcs6070H (Appellant) (Respondent) & C.O. No. 77/Del/2011 [In Ita No. 988/Del/2011] Assessment Year: 2006-07 M/S. Spice Communication Ltd., Vs. Deputy Commissioner Of Income C/O- Idea Cellular Ltd., A-68, Tax, Circle 9(1), Room No. 163, Sector-64, Noida. C.R. Building, New Delhi Gir/Pan : Aagcs6070H (Appellant) (Respondent) & Assessment Year: 2006-07 M/S. Idea Cellular Ltd., A-68, Vs. Acit, Circle-50(1), New Delhi Sector-64, Noida Gir/Pan : Aaacb2100P (Appellant) (Respondent) Assessee By Sh. Ronak G. Doshi, Ca Department By Sh. B.K. Singh, Cit(Dr) Date Of Hearing 05.04.2016 Date Of Pronouncement 25.05.2016 & C.O. No. 77/Del/2011

Section 143(2)Section 143(3)

…arket, its business would suffer. Consequently, the Tribunal held the entire expenditure on advertising to be of a revenue nature and allowed the same. The Tribunal also noted the decision of the Supreme Court in the case of Empire Jute Co. Ltd. v. CIT [1980] 124 ITR 1 wherein the Supreme Court held that there could be cases where the expenditure even if it was incurred for obtaining of a benefit of an enduring nature may, nevertheless, be on the revenue account and, in such cases, the test of "enduring benefit" may break down. 4. We are of the view that the decision of the Tribunal on this aspect of the matter d…

Idea Cellular Ltd., Noida vs. ACIT, New Delhi

In the result, the appeal in ITA No

ITA 801/DEL/2011[2006-07]Status: DisposedITAT Delhi25 May 2016AY 2006-07

Bench: Sh. I.C. Sudhir & Sh. O.P. Kantassessment Year: 2006-07 Deputy Commissioner Of Income Vs. M/S. Spice Communication Ltd., Tax, Circle 9(1), Room No. 163, C/O- Idea Cellular Ltd., A-68, C.R. Building, New Delhi Sector-64, Noida. Gir/Pan : Aagcs6070H (Appellant) (Respondent) & C.O. No. 77/Del/2011 [In Ita No. 988/Del/2011] Assessment Year: 2006-07 M/S. Spice Communication Ltd., Vs. Deputy Commissioner Of Income C/O- Idea Cellular Ltd., A-68, Tax, Circle 9(1), Room No. 163, Sector-64, Noida. C.R. Building, New Delhi Gir/Pan : Aagcs6070H (Appellant) (Respondent) & Assessment Year: 2006-07 M/S. Idea Cellular Ltd., A-68, Vs. Acit, Circle-50(1), New Delhi Sector-64, Noida Gir/Pan : Aaacb2100P (Appellant) (Respondent) Assessee By Sh. Ronak G. Doshi, Ca Department By Sh. B.K. Singh, Cit(Dr) Date Of Hearing 05.04.2016 Date Of Pronouncement 25.05.2016 & C.O. No. 77/Del/2011

Section 143(2)Section 143(3)

…arket, its business would suffer. Consequently, the Tribunal held the entire expenditure on advertising to be of a revenue nature and allowed the same. The Tribunal also noted the decision of the Supreme Court in the case of Empire Jute Co. Ltd. v. CIT [1980] 124 ITR 1 wherein the Supreme Court held that there could be cases where the expenditure even if it was incurred for obtaining of a benefit of an enduring nature may, nevertheless, be on the revenue account and, in such cases, the test of "enduring benefit" may break down. 4. We are of the view that the decision of the Tribunal on this aspect of the matter d…

DCIT, Circle - 5, Kolkata vs. M/S. Essel Mining & Industries Ltd., Kolkata

In the result the appeal of the revenue is dismissed

ITA 589/KOL/2011[2007-08]Status: DisposedITAT Kolkata20 May 2016AY 2007-08

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri M.Balaganesh, Am ] Assessment Year : 2007-08

For Appellant: Shri D.S.Damle, FCAFor Respondent: Shri Rajat Subhra Biswas, CIT(DR)
Section 143(3)Section 147

…r obstruction or disability that has arisen in continuing of mining business. We are of the considered view that since it is a one-time payment, it could not be considered as capital in nature. Hon’ble Apex Court has held in Empire Ju9te Company Ltd. –vs-CIT [124 ITR 1] that there may be cases where expenditure, even if incurred for obtaining an advantage of any enduring benefit, may, nonetheless, be on revenue account and the test of enduring benefit may break down. Hon’ble Apex Court observed that if the advantage consisted of merely in facilitating the concerned assessee’s trading operations or enabling the ma…

Essel Mining & Industries Ltd., Kolkata vs. Addl. CIT, Range - 5, Kolkata

In the result the appeal of the revenue is dismissed

ITA 352/KOL/2011[2007-08]Status: DisposedITAT Kolkata20 May 2016AY 2007-08

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri M.Balaganesh, Am ] Assessment Year : 2007-08

For Appellant: Shri D.S.Damle, FCAFor Respondent: Shri Rajat Subhra Biswas, CIT(DR)
Section 143(3)Section 147

…r obstruction or disability that has arisen in continuing of mining business. We are of the considered view that since it is a one-time payment, it could not be considered as capital in nature. Hon’ble Apex Court has held in Empire Ju9te Company Ltd. –vs-CIT [124 ITR 1] that there may be cases where expenditure, even if incurred for obtaining an advantage of any enduring benefit, may, nonetheless, be on revenue account and the test of enduring benefit may break down. Hon’ble Apex Court observed that if the advantage consisted of merely in facilitating the concerned assessee’s trading operations or enabling the ma…

Lavino Kapur Copttons P.Ltd, Mumbai vs. DCIT 3(2), Mumbai

In the result, the appeal of the assessee is allowed, as above

ITA 2135/MUM/2015[2010-11]Status: DisposedITAT Mumbai06 May 2016AY 2010-11

Bench: Shri G.S.Pannu & Shri Amarjit Singhm/S. Lavino Kapur Cottons Pvt. Ltd. 121/122, Mittal Chambers, Nariman Point, Mumbai 400 021 Pan:Aaacl 0824C ... Appellant Vs.

For Appellant: Shri Surinder MehraFor Respondent: Shri Neil Philip
Section 143(3)

…vs. Shree Bhagavathi Textiles Ltd. 207 ITR 826(Kerala) ii) Vanaja Textiles Ltd. vs. CIT 208 ITR 161 (Kerala) iii) Alembic Chemical Works Co. Ltd. vs. CIT 177 ITR 377 (SC) iv) CIT vs. Associated Cement Co. Ltd. 172 ITR 257 (SC) v) Empire Jute Co. Ltd. vs. CIT 124 ITR 1(SC) f) That the Commissioner of Income-tax (Appeals) has erred in placing reliance on the decision of the Delhi High Court in the case of Delhi Cloth & General Mills Co. Ltd. vs. Addl. CIT 160 ITR 857 (Delhi). g) That the said decision of the Delhi High Court related to replacement of furniture and racks and related to a depot. In the present case…

DCIT, Chennai vs. Cholamandalam Investment and Finance Company Limited, Chennai

In the result, the appeal of the Revenue in ITA

ITA 1431/CHNY/2014[2001-02]Status: DisposedITAT Chennai28 Apr 2016AY 2001-02

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri. Milind S. Kothari, C.AFor Respondent: Shri. Madhukar Bhusari, CIT
Section 139Section 139(5)Section 143(1)Section 143(2)Section 143(3)Section 147Section 148

…fficer held that these expenses can neither be treated as temporary wooden structures nor allowed as repairs and need only to be capitalized and relied on the following case laws :- 1.M/s. Indian Metal & Metallurgical Ltd (141 ITR 40) 2.Mls. Empire Jute Mills 124 ITR 1 (SC) 3. CIt vs. Saravana Spinning Mills Private Limited (293 ITR 201) (SC) 4. Bigjo's Indha Lld vs. CIT (2931TR 170) The Assessing Officer treated the wooden partition, interior works in renovation and improvement in the leased premises and also no proof of lease period was provided and the expenditure has been incurred for the improvement for l…

Cholamandalam Investment and Finance Company Limited, Chennai vs. ACIT, Chennai

In the result, the appeal of the Revenue in ITA

ITA 1180/CHNY/2014[2005-06]Status: DisposedITAT Chennai28 Apr 2016AY 2005-06

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri. Milind S. Kothari, C.AFor Respondent: Shri. Madhukar Bhusari, CIT
Section 139Section 139(5)Section 143(1)Section 143(2)Section 143(3)Section 147Section 148

…fficer held that these expenses can neither be treated as temporary wooden structures nor allowed as repairs and need only to be capitalized and relied on the following case laws :- 1.M/s. Indian Metal & Metallurgical Ltd (141 ITR 40) 2.Mls. Empire Jute Mills 124 ITR 1 (SC) 3. CIt vs. Saravana Spinning Mills Private Limited (293 ITR 201) (SC) 4. Bigjo's Indha Lld vs. CIT (2931TR 170) The Assessing Officer treated the wooden partition, interior works in renovation and improvement in the leased premises and also no proof of lease period was provided and the expenditure has been incurred for the improvement for l…

D.C.I.T Cir - 1, Kolkata vs. M/S M/S Exide Industries Limited, Kolkata

In the result, the appeal of the revenue is dismissed

ITA 1347/KOL/2013[2008-09]Status: DisposedITAT Kolkata13 Apr 2016AY 2008-09

Bench: : Shri Mahavir Singh & Shri M. Balaganesh

For Appellant: S/Shri Anup Sinha, ACA &For Respondent: None appeared
Section 143(3)Section 145ASection 43B

…fore the shifting had not been done to increase the profit earning capacity of the assessee or an enduring benefit of the asset as such. We find that this aspect is considered by the Hon’ble Apex Court in the case of Empire Jute Company Ltd vs CIT reported in 124 ITR 1 (SC) , where the Hon’ble Supreme Court had held that : there are 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 princip…