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 366,314 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

Dy. Commissioner of Income Tax, Circle-2(2), Hyderabad vs. Hsbc Electronic Data Processing India Private Limited, Hyderabad

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

ITA 1632/HYD/2017[2010-11]Status: DisposedITAT Hyderabad05 Aug 2024AY 2010-11

Bench: Shri Laliet Kumar & Shri Madhusudan Sawdia

For Appellant: Shri Rajan Vora, C.AFor Respondent: : Shri Kumar Pranav, CIT-DR
Section 10ASection 115Section 115JSection 251(1)(a)Section 37(1)Section 41(1)

…the licenses are for software usage. 8.1 Assessee in support of its argument relied on the decision of Hon'ble Bangalore Tribunal in case of Wipro Ltd., (2009 -TIOL -72 - ITAT - Bang) and also on the decision of Hon'ble SC in the case of Empire Jute Co Ltd., (124 ITR 1). Without prejudice to the above, it is also argued that even if the expenditure is considered as capital expenditure depreciation should be allowed at 60% as the software expenditure falls under the block computers. I have considered the arguments of the assessee and have gone through the details of items purchased. It is seen that most of the ite…

Samkeet Arya Homes LLP, Ahmedabad vs. The Income Tax Officer, Ward-3(3)(5), Ahmedabad

In the result, appeal filed by the assessee is allowed

ITA 249/AHD/2024[2018-19]Status: DisposedITAT Ahmedabad16 Jul 2024AY 2018-19

Bench: Ms. Suchitra Kamble & Shri Makarand Vasant Mahadeokarassessment Year: 2018-10

Section 133(6)Section 143(2)Section 37

…ITA No.249/Ahd/2024 Assessment Year: 2018-19 Page 1 of 7 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH, AHMEDABAD BEFORE Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI MAKARAND VASANT MAHADEOKAR, ACCOUNTANT MEMBER Assessment Year: 2018-10 Samkeet Arya Homes LLP, The Income Tax Officer, B-604, Shapath IV, Ward – 3(3)(5), Opp. Karnavati Club, Ahmedabad. S.G. Highway, Vs. Ahmedabad – 380 015. [PAN – ACRFS 2181 D] (Appellant) (Respondent) Assessee by Ms. Shrunjal Shah, AR Revenue by Shri N.J. Vyas, Sr. DR Date of Hearing 16.05.2024 Date of Pronouncement 16.07.2024 O R D E R PER SUCHITRA KAMBLE: This a…

Tata International Ltd, Mumbai vs. DCIT RG 14(3)1), Mumbai

In the result, the ground no

ITA 1195/MUM/2015[2010-11]Status: DisposedITAT Mumbai28 May 2024AY 2010-11

Bench: Shri Anikesh Banerjee & Miss Padmavathy S.

For Appellant: Shri Nitesh Joshi a/w Ninad PatadeFor Respondent: Ms. Dhivya Ruth SR.DR
Section 143(3)Section 144C(5)Section 92CSection 92C(2)

…gard to the business realities. In a given case, the test of 'enduring benefit' might break down. In CIT v. Associated Cement Co. Ltd. JT 282 (2) 287 this Court said: ". . .As observed by the Supreme Court in the decision in Empire Jute Co. Ltd. v. CIT [1980] 124 ITR 1 (SC) that there may be cases where expenditure, even if incurred for obtaining an enduring benefit may break down. It is not every advantage of enduring nature acquired by an assessee that brings the case within the principles laid down in this test. What is material to consider is the nature of the advantage in a commercial sense and it is only wh…

DCIT, Circle-8(1), Kolkata vs. Itc Limited, Kolkata

In the result appeals of the assessee are partly allowed for statistical purposes and the appeals of the revenue are dismissed

ITA 1223/KOL/2017[2011-12]Status: DisposedITAT Kolkata10 May 2024AY 2011-12

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 115JSection 143(1)Section 37

…nd related consumables and were paid to various parties the details whereof are available at page no. 344 and 345 Volumn-1 of PB. The case of the assessee finds support from the decision of Hon’ble Apex Court in the case of Empire Jute Co. Ltd. vs. CIT [1980] 124 ITR 1(SC) wherein the Hon’ble Supreme Court has held that if the advantage consists merely in facilitating the assessee’s trading operations or enabling the management and conduct of the assessee’s business to be carried on more efficiently or more profitably, while leaving the fixed capital untouched, the expenditure would be of revenue account, even 2…

DCIT, Circle-8(1), Kolkata vs. Itc Limited, Kolkata

In the result appeals of the assessee are partly allowed for statistical purposes and the appeals of the revenue are dismissed

ITA 1222/KOL/2017[2010-11]Status: DisposedITAT Kolkata10 May 2024AY 2010-11

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 115JSection 143(1)Section 37

…nd related consumables and were paid to various parties the details whereof are available at page no. 344 and 345 Volumn-1 of PB. The case of the assessee finds support from the decision of Hon’ble Apex Court in the case of Empire Jute Co. Ltd. vs. CIT [1980] 124 ITR 1(SC) wherein the Hon’ble Supreme Court has held that if the advantage consists merely in facilitating the assessee’s trading operations or enabling the management and conduct of the assessee’s business to be carried on more efficiently or more profitably, while leaving the fixed capital untouched, the expenditure would be of revenue account, even 2…

Itc Limited, Kolkata vs. ACIT, Range-8, Kolkata

In the result appeals of the assessee are partly allowed for statistical purposes and the appeals of the revenue are dismissed

ITA 1166/KOL/2017[2011-12]Status: DisposedITAT Kolkata10 May 2024AY 2011-12

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 115JSection 143(1)Section 37

…nd related consumables and were paid to various parties the details whereof are available at page no. 344 and 345 Volumn-1 of PB. The case of the assessee finds support from the decision of Hon’ble Apex Court in the case of Empire Jute Co. Ltd. vs. CIT [1980] 124 ITR 1(SC) wherein the Hon’ble Supreme Court has held that if the advantage consists merely in facilitating the assessee’s trading operations or enabling the management and conduct of the assessee’s business to be carried on more efficiently or more profitably, while leaving the fixed capital untouched, the expenditure would be of revenue account, even 2…

Itc Limited, Kolkata vs. ACIT, Range-8, Kolkata

In the result appeals of the assessee are partly allowed for statistical purposes and the appeals of the revenue are dismissed

ITA 1068/KOL/2017[2010-11]Status: DisposedITAT Kolkata10 May 2024AY 2010-11

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 115JSection 143(1)Section 37

…nd related consumables and were paid to various parties the details whereof are available at page no. 344 and 345 Volumn-1 of PB. The case of the assessee finds support from the decision of Hon’ble Apex Court in the case of Empire Jute Co. Ltd. vs. CIT [1980] 124 ITR 1(SC) wherein the Hon’ble Supreme Court has held that if the advantage consists merely in facilitating the assessee’s trading operations or enabling the management and conduct of the assessee’s business to be carried on more efficiently or more profitably, while leaving the fixed capital untouched, the expenditure would be of revenue account, even 2…

Express Publications (Madurai)Private Ltd., Chennai vs. DCIT, Corporate Circle-II(1), Chennai

Appeal stand dismissed

ITA 754/CHNY/2023[2012-13]Status: DisposedITAT Chennai27 Mar 2024AY 2012-13

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपीलसं./ Ita No.730/Chny/2023 (िनधा*रणवष* / Assessment Year: 2010-11) & 2. आयकरअपीलसं./ Ita No.737/Chny/2023 (िनधा*रणवष* / Assessment Year: 2011-12) & 3. आयकरअपीलसं./ Ita No.754/Chny/2023 (िनधा*रणवष* / Assessment Year: 2012-13) M/S. Express Publications (Madurai) Dcit P. Ltd. Corporate Circle-Ii(1) बनाम/ C/O. Sri T.N. Seetharaman, Advocate Chennai. Vs. 384 (Old No.196) Lloyds Road, Chennai-600 086. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaaci-0842-D (अपीलाथ"/Appellant) : (" थ" / Respondent) & 4. आयकरअपीलसं./ Ita No.1219/Chny/2023 (िनधा*रणवष* / Assessment Year: 2012-13) Dcit M/S. Express Publications (Madurai) P. Corporate Circle-Ii(1) Ltd. बनाम/ Vs. Chennai C/O. Sri T.N.Seetharaman, Advocate 384 (Old No.196) Lloyds Road, Chennai-600 086. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaaci-0842-D (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ" कीओरसे/ Assessee By : Shri T.N. Seetharaman (Advocate)- Ld.Ar " थ"कीओरसे/Revenue By : Shri D. Hema Bhupal (Jcit)-Ld. Dr सुनवाई की तारीख/Date Of Hearing : 20-03-2024 घोषणा की तारीख /Date Of Pronouncement : 27-03-2024

For Appellant: Shri T.N. Seetharaman (Advocate)- Ld.ARFor Respondent: Shri D. Hema Bhupal (JCIT)-Ld. DR
Section 143(3)Section 36(1)(iii)

…आयकर अपीलीय अिधकरण “बी” "ायपीठ चे"ईम"। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय "ी महावीर िसंह, उपा ! एवं माननीय "ी मनोज कुमार अ&वाल ,लेखा सद) के सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपीलसं./ ITA No.730/Chny/2023 (िनधा*रणवष* / Assessment Year: 2010-11) & 2. आयकरअपीलसं./ ITA No.737/Chny/2023 (िनधा*रणवष* / Assessment Year: 2011-12) & 3. आयकरअपीलसं./ ITA No.754/Chny/2023 (िनधा*रणवष* / Assessment Year: 2012-13) M/s. Express Publications (Madurai) DCIT P. Ltd. Corporate Circle-II(1) बनाम/ C/o. Sri T.N. Seetharaman, Advocate Chennai. Vs. 384 (…

Express Publications (Madurai)Private Ltd., Chennai vs. DCIT, Corporate Circle-II(1), Chennai

Appeal stand dismissed

ITA 737/CHNY/2023[2011-12]Status: DisposedITAT Chennai27 Mar 2024AY 2011-12

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपीलसं./ Ita No.730/Chny/2023 (िनधा*रणवष* / Assessment Year: 2010-11) & 2. आयकरअपीलसं./ Ita No.737/Chny/2023 (िनधा*रणवष* / Assessment Year: 2011-12) & 3. आयकरअपीलसं./ Ita No.754/Chny/2023 (िनधा*रणवष* / Assessment Year: 2012-13) M/S. Express Publications (Madurai) Dcit P. Ltd. Corporate Circle-Ii(1) बनाम/ C/O. Sri T.N. Seetharaman, Advocate Chennai. Vs. 384 (Old No.196) Lloyds Road, Chennai-600 086. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaaci-0842-D (अपीलाथ"/Appellant) : (" थ" / Respondent) & 4. आयकरअपीलसं./ Ita No.1219/Chny/2023 (िनधा*रणवष* / Assessment Year: 2012-13) Dcit M/S. Express Publications (Madurai) P. Corporate Circle-Ii(1) Ltd. बनाम/ Vs. Chennai C/O. Sri T.N.Seetharaman, Advocate 384 (Old No.196) Lloyds Road, Chennai-600 086. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaaci-0842-D (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ" कीओरसे/ Assessee By : Shri T.N. Seetharaman (Advocate)- Ld.Ar " थ"कीओरसे/Revenue By : Shri D. Hema Bhupal (Jcit)-Ld. Dr सुनवाई की तारीख/Date Of Hearing : 20-03-2024 घोषणा की तारीख /Date Of Pronouncement : 27-03-2024

For Appellant: Shri T.N. Seetharaman (Advocate)- Ld.ARFor Respondent: Shri D. Hema Bhupal (JCIT)-Ld. DR
Section 143(3)Section 36(1)(iii)

…आयकर अपीलीय अिधकरण “बी” "ायपीठ चे"ईम"। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय "ी महावीर िसंह, उपा ! एवं माननीय "ी मनोज कुमार अ&वाल ,लेखा सद) के सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपीलसं./ ITA No.730/Chny/2023 (िनधा*रणवष* / Assessment Year: 2010-11) & 2. आयकरअपीलसं./ ITA No.737/Chny/2023 (िनधा*रणवष* / Assessment Year: 2011-12) & 3. आयकरअपीलसं./ ITA No.754/Chny/2023 (िनधा*रणवष* / Assessment Year: 2012-13) M/s. Express Publications (Madurai) DCIT P. Ltd. Corporate Circle-II(1) बनाम/ C/o. Sri T.N. Seetharaman, Advocate Chennai. Vs. 384 (…

Express Publications (Madurai)Private Ltd., Chennai vs. DCIT, Corporate Circle-II(1), Chennai

Appeal stand dismissed

ITA 730/CHNY/2023[2010-11]Status: DisposedITAT Chennai27 Mar 2024AY 2010-11

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपीलसं./ Ita No.730/Chny/2023 (िनधा*रणवष* / Assessment Year: 2010-11) & 2. आयकरअपीलसं./ Ita No.737/Chny/2023 (िनधा*रणवष* / Assessment Year: 2011-12) & 3. आयकरअपीलसं./ Ita No.754/Chny/2023 (िनधा*रणवष* / Assessment Year: 2012-13) M/S. Express Publications (Madurai) Dcit P. Ltd. Corporate Circle-Ii(1) बनाम/ C/O. Sri T.N. Seetharaman, Advocate Chennai. Vs. 384 (Old No.196) Lloyds Road, Chennai-600 086. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaaci-0842-D (अपीलाथ"/Appellant) : (" थ" / Respondent) & 4. आयकरअपीलसं./ Ita No.1219/Chny/2023 (िनधा*रणवष* / Assessment Year: 2012-13) Dcit M/S. Express Publications (Madurai) P. Corporate Circle-Ii(1) Ltd. बनाम/ Vs. Chennai C/O. Sri T.N.Seetharaman, Advocate 384 (Old No.196) Lloyds Road, Chennai-600 086. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaaci-0842-D (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ" कीओरसे/ Assessee By : Shri T.N. Seetharaman (Advocate)- Ld.Ar " थ"कीओरसे/Revenue By : Shri D. Hema Bhupal (Jcit)-Ld. Dr सुनवाई की तारीख/Date Of Hearing : 20-03-2024 घोषणा की तारीख /Date Of Pronouncement : 27-03-2024

For Appellant: Shri T.N. Seetharaman (Advocate)- Ld.ARFor Respondent: Shri D. Hema Bhupal (JCIT)-Ld. DR
Section 143(3)Section 36(1)(iii)

…आयकर अपीलीय अिधकरण “बी” "ायपीठ चे"ईम"। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय "ी महावीर िसंह, उपा ! एवं माननीय "ी मनोज कुमार अ&वाल ,लेखा सद) के सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपीलसं./ ITA No.730/Chny/2023 (िनधा*रणवष* / Assessment Year: 2010-11) & 2. आयकरअपीलसं./ ITA No.737/Chny/2023 (िनधा*रणवष* / Assessment Year: 2011-12) & 3. आयकरअपीलसं./ ITA No.754/Chny/2023 (िनधा*रणवष* / Assessment Year: 2012-13) M/s. Express Publications (Madurai) DCIT P. Ltd. Corporate Circle-II(1) बनाम/ C/o. Sri T.N. Seetharaman, Advocate Chennai. Vs. 384 (…

Income Tax Officer, Chennai vs. Express Publications(Madurai) Private Limited, Chennai

Appeal stand dismissed

ITA 1219/CHNY/2023[2012-2013]Status: DisposedITAT Chennai27 Mar 2024AY 2012-2013

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपीलसं./ Ita No.730/Chny/2023 (िनधा*रणवष* / Assessment Year: 2010-11) & 2. आयकरअपीलसं./ Ita No.737/Chny/2023 (िनधा*रणवष* / Assessment Year: 2011-12) & 3. आयकरअपीलसं./ Ita No.754/Chny/2023 (िनधा*रणवष* / Assessment Year: 2012-13) M/S. Express Publications (Madurai) Dcit P. Ltd. Corporate Circle-Ii(1) बनाम/ C/O. Sri T.N. Seetharaman, Advocate Chennai. Vs. 384 (Old No.196) Lloyds Road, Chennai-600 086. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaaci-0842-D (अपीलाथ"/Appellant) : (" थ" / Respondent) & 4. आयकरअपीलसं./ Ita No.1219/Chny/2023 (िनधा*रणवष* / Assessment Year: 2012-13) Dcit M/S. Express Publications (Madurai) P. Corporate Circle-Ii(1) Ltd. बनाम/ Vs. Chennai C/O. Sri T.N.Seetharaman, Advocate 384 (Old No.196) Lloyds Road, Chennai-600 086. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaaci-0842-D (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ" कीओरसे/ Assessee By : Shri T.N. Seetharaman (Advocate)- Ld.Ar " थ"कीओरसे/Revenue By : Shri D. Hema Bhupal (Jcit)-Ld. Dr सुनवाई की तारीख/Date Of Hearing : 20-03-2024 घोषणा की तारीख /Date Of Pronouncement : 27-03-2024

For Appellant: Shri T.N. Seetharaman (Advocate)- Ld.ARFor Respondent: Shri D. Hema Bhupal (JCIT)-Ld. DR
Section 143(3)Section 36(1)(iii)

…आयकर अपीलीय अिधकरण “बी” "ायपीठ चे"ईम"। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय "ी महावीर िसंह, उपा ! एवं माननीय "ी मनोज कुमार अ&वाल ,लेखा सद) के सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपीलसं./ ITA No.730/Chny/2023 (िनधा*रणवष* / Assessment Year: 2010-11) & 2. आयकरअपीलसं./ ITA No.737/Chny/2023 (िनधा*रणवष* / Assessment Year: 2011-12) & 3. आयकरअपीलसं./ ITA No.754/Chny/2023 (िनधा*रणवष* / Assessment Year: 2012-13) M/s. Express Publications (Madurai) DCIT P. Ltd. Corporate Circle-II(1) बनाम/ C/o. Sri T.N. Seetharaman, Advocate Chennai. Vs. 384 (…

M/S. United Breweries Limited, Bangalore vs. Deputy Commissioner of Income-Tax, Circle-7(1)(1), Bengaluru

In the result, both the appeals filed by the assessee stands partly allowed for statistical purposes

ITA 1020/BANG/2023[2020-21]Status: DisposedITAT Bangalore31 Jan 2024AY 2020-21

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Respondent: Shri K R Vasudevan &
Section 143(3)Section 147Section 148

…capital field and it cannot be said to have been incurred to facilitate trading operation of the assessee. Learned Counsel appearing for both the sides placed reliance 7. upon the judgment of the Supreme Court in the case of Empire Jute Co. Ltd. v. CIT [1980] 124 ITR 1/3 Taxman 69, in support of their contentions. Mr. Aravind, learned counsel for the Revenue tried to Page 19 of 23 ITA Nos. 1019 & 1020/Bang/2023 distinguish the ratio laid down by the Supreme Court in this case on the basis of factual matrix involved therein. As against this, learned counsel appearing for the respondent/assessee placed reliance up…

ACIT Circle-19(1), New Delhi vs. Oppo Mobiles India (P) Ltd, New Delhi

In the result, appeal of the Revenue is dismissed

ITA 3789/DEL/2019[2015-16]Status: DisposedITAT Delhi23 Jan 2024AY 2015-16

Bench: Shri N.K. Billaiya & Ms. Astha Chandraasstt. Year 2015-16

For Appellant: Shri Ravi Sharma, AdvFor Respondent: Shri Subhra Jyoti Chakraborty, CIT(DR)
Section 143(3)Section 37(1)

…g advantage of enduring benefit to the assessee, still it would be on revenue account as there is no creation of a tangible or intangible asset of enduring nature to the assessee. 4.9 The Hon'ble Supreme Court in the case of Empire Jute Co. Ltd. v. CIT [1980] 124 ITR 1, has held that no tests for distinguishing between capital and revenue expenditure is paramount or conclusive. There is no all- embracing formula which can provide a ready solution to the problem, whether it is a capital expenditure or revenue expenditure. Their Lordships have held that even tests of enduring benefit at times gets failed as not eac…

Frontier Textiles (P) Ltd., Howrah vs. DCIT, Cir-1(1), Kolkata

In the result, appeal of the assessee is partly allowed

ITA 710/KOL/2023[2014-15]Status: DisposedITAT Kolkata14 Dec 2023AY 2014-15

Bench: Shri Rajesh Kumar& Shri Sonjoy Sarma]

…re is only to test the quality of the Fire Resistant Garment. Reliance is placed on the following judgments wherein it has been held that research &development expenditure of an existing cannot be treated as Capital expenditure. 1. Empire Jute Co. Ltd. (1980) 124 ITR 1 (SC) 2. Alembic Chemical Works Co. Ltd. (1989) 177 ITR 377 (SC) 3. ACIT V. Medicamen Biotech Ltd. (2006) 99 TTJ 873 (Del) 5.2.2 The submission filed by the appellant has been carefully considered but is not acceptable in the light of Hon’ble Supreme Court jurdgement in the case of Honda Siel Cars India Ltd. vs. CIT in the Civil Appeal No. 4918 of 2…

The Pr. Commissioner of Income Tax -7 vs. St Microelectronics Pvt. Ltd

ITA/715/2023HC Delhi07 Dec 2023

Bench: HON'BLE MR. JUSTICE RAJIV SHAKDHER,HON'BLE MR. JUSTICE GIRISH KATHPALIA

…ITA 715/2023 Page 1 of 8 $~37 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision: 07.12.2023 + ITA 715/2023 & CM Appl.63260/2023 THE PR. COMMISSIONER OF INCOME TAX -7..... Appellant Through: Mr Ruchir Bhatia, Sr Standing Counsel with Ms Deeksha Gupta, Adv. versus ST MICROELECTRONICS PVT. LTD. ..... Respondent Through: Mr Neeraj Jain with Mr Aditya Vohra, Advs. CORAM: HON'BLE MR. JUSTICE RAJIV SHAKDHER HON'BLE MR. JUSTICE GIRISH KATHPALIA [Physical Hearing/Hybrid Hearing (as per request)] RAJIV SHAKDHER, J.: (ORAL) CM…

The Pr. Commissioner of Income Tax -7 vs. St Microelectronics Pvt. Ltd

ITA - 715 / 2023HC Delhi07 Dec 2023

…ITA 715/2023 Page 1 of 8 $~37 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision: 07.12.2023 + ITA 715/2023 & CM Appl.63260/2023 THE PR. COMMISSIONER OF INCOME TAX -7..... Appellant Through: Mr Ruchir Bhatia, Sr Standing Counsel with Ms Deeksha Gupta, Adv. versus ST MICROELECTRONICS PVT. LTD. ..... Respondent Through: Mr Neeraj Jain with Mr Aditya Vohra, Advs. CORAM: HON'BLE MR. JUSTICE RAJIV SHAKDHER HON'BLE MR. JUSTICE GIRISH KATHPALIA [Physical Hearing/Hybrid Hearing (as per request)] RAJIV SHAKDHER, J.: (ORAL) CM…

ACIT 1(1), Mumbai vs. Blue Star Ltd, Mumbai

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

ITA 5550/MUM/2011[2006-07]Status: DisposedITAT Mumbai30 Nov 2023AY 2006-07

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm Blue Star Ltd. The Addl. Cit, Range 1(1), Kasturi Building, Mohan T Advani Aaykar Bhavan, Mumbai Vs. Chowk, Jamshedji Tata Road, Mumbai-400 020 Pan/Gir No. Aaacb 4487 D (Assessee) (Revenue) : The Addl. Cit, Range 1(1), Blue Star Ltd. Aaykar Bhavan, Mumbai Kasturi Building, Mohan T Advani Vs. Chowk, Jamshedji Tata Road, Mumbai-400 020 Pan/Gir No. Aaacb 4487 D (Revenue) : (Assessee)

For Appellant: Shri Niraj Sheth
Section 115Section 145ASection 250Section 40Section 43B

…existing ongoing business is in the nature of maintaining the brand and/or corporate image and it is not for creation of a brand. Further, the test of enduring benefit urged by the Revenue was considered by the Apex Court in Empire Jute Co.Ltd. v. CIT [1980] 124 ITR 1/3 Taxman 69 to hold that it is not a conclusive test in all cases so that such expenditure is always on capital account. The Court observed that what is to be examined is the nature of advantage obtained in the commercial sense by incurring the expenditure. If the expenditure consists of merely facilitating the assessee to carry on business more pr…

Blue Star Ltd, Mumbai vs. Addl CIT RG 1(1), Mumbai

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

ITA 4792/MUM/2011[2006-07]Status: DisposedITAT Mumbai30 Nov 2023AY 2006-07

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm Blue Star Ltd. The Addl. Cit, Range 1(1), Kasturi Building, Mohan T Advani Aaykar Bhavan, Mumbai Vs. Chowk, Jamshedji Tata Road, Mumbai-400 020 Pan/Gir No. Aaacb 4487 D (Assessee) (Revenue) : The Addl. Cit, Range 1(1), Blue Star Ltd. Aaykar Bhavan, Mumbai Kasturi Building, Mohan T Advani Vs. Chowk, Jamshedji Tata Road, Mumbai-400 020 Pan/Gir No. Aaacb 4487 D (Revenue) : (Assessee)

For Appellant: Shri Niraj Sheth
Section 115Section 145ASection 250Section 40Section 43B

…existing ongoing business is in the nature of maintaining the brand and/or corporate image and it is not for creation of a brand. Further, the test of enduring benefit urged by the Revenue was considered by the Apex Court in Empire Jute Co.Ltd. v. CIT [1980] 124 ITR 1/3 Taxman 69 to hold that it is not a conclusive test in all cases so that such expenditure is always on capital account. The Court observed that what is to be examined is the nature of advantage obtained in the commercial sense by incurring the expenditure. If the expenditure consists of merely facilitating the assessee to carry on business more pr…

Eaton Power Quality Private Ltd, Puducherry vs. DCIT, Pondicherry Circle, Pondicherry

In the result, the appeal of the assessee in ITA

ITA 175/CHNY/2019[2012-13]Status: DisposedITAT Chennai20 Oct 2023AY 2012-13

Bench: Shri Mahavir Singh & Shri Manoj Kumar Aggarwalआयकर अपील सं./I.T.A No.175/Chny/2019 िनधा"रण वष" /Assessment Year :2012-2013 Eaton Power Quality Private Vs. The Deputy Commissioner Of Limited, Income Tax, No.2, E.V.R. Street, Pondicherry Circle, Sedarapet, Pondicherry. Puducherry- 605 111. [Pan Aaacc 6943R] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant By : Shri Vishal Kalra, Advocate ""यथ" क" ओर से /Respondent By : Shri V. Suresh Guduri, Irs, Jcit. : 27.09.2023. सुनवाई क" तारीख/Date Of Hearing घोषणा क" तारीख /Date Of Pronouncement : 20.10.2023 आदेश / O R D E R Per Mahavir Singh:

For Appellant: Shri Vishal Kalra, AdvocateFor Respondent: Shri V. Suresh Guduri, IRS, JCIT
Section 143(3)Section 37

…cit employees transferred to the Appellant during the first year of the term’’. It was further submitted by the ld. Counsel for the assessee that this issue was covered by the decisions of Hon’ble Supreme Court in the case of Empire Jute Company Ltd vs. CIT, 124 ITR 1 and that of CIT vs. Coal Shipments (P) Ltd, (1971) 82 ITR 902. Alternatively ld. Counsel for the assessee requested that in case 6. this Bench is not in agreement with the assessee that non-compete payment is revenue in nature and deductible in the subject year in which it was incurred, it was prayed that since the payment was incurred wholly and e…

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…