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

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

In the result, the appeals of the assessee are partly allowed for statistical purposes

ITA 308/BANG/2023[2017-18]Status: DisposedITAT Bangalore29 Aug 2023AY 2017-18

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Ankur Pai, A.R. a/wFor Respondent: Shri Saravanan B., DR
Section 143(3)Section 144BSection 144C(13)Section 14ASection 250Section 92C

…capital field and it cannot be said to have been incurred to facilitate trading operation of the assessee. 7. Learned Counsel appearing for both the sides placed reliance 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 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 upon the principle laid down by the Supreme Cour…

United Breweries Limited, Bangalore vs. Joint Commissioner of Income Tax, Special Range- 7, Bangalore

In the result, the appeals of the assessee are partly allowed for statistical purposes

ITA 345/BANG/2021[2016-17]Status: DisposedITAT Bangalore29 Aug 2023AY 2016-17

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Ankur Pai, A.R. a/wFor Respondent: Shri Saravanan B., DR
Section 143(3)Section 144BSection 144C(13)Section 14ASection 250Section 92C

…capital field and it cannot be said to have been incurred to facilitate trading operation of the assessee. 7. Learned Counsel appearing for both the sides placed reliance 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 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 upon the principle laid down by the Supreme Cour…

M/S Aadhi Enterprises Private Limited, Chennai vs. ACIT, Central Circle-3(1), Chennai

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

ITA 308/CHNY/2023[2016-17]Status: DisposedITAT Chennai23 Aug 2023AY 2016-17

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwalआयकर अपील सं./Ita No.: 308/Chny/2023 िनधा"रण वष"/Assessment Year: 2016-17 Aadhi Enterprises Pvt. Ltd., The Acit, No.1-130, Perambur Barracks V. Central Circle-3(1), Road, Pattalam, Chennai. Chennai – 600 112. Pan: Aanca 0382P (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri B. Ramakrishnan, Fca Shri S. Neelakantan, Fca Shri Shrenik Chordia, Ca ""यथ" क" ओर से/Respondent By : Shri S. Senthil Kumaran, Cit सुनवाई क" तारीख/Date Of Hearing : 11.07.2023 घोषणा क" तारीख/Date Of Pronouncement : 23.08.2023

For Appellant: Shri B. Ramakrishnan, FCAFor Respondent: Shri S. Senthil Kumaran, CIT
Section 132Section 139(1)Section 143(2)Section 153ASection 68

…ction, genuineness of the transaction and creditworthiness of the creditor, the burden shifts to the revenue to show that the amount belongs to the assessee, including the decision of the Hon'ble Apex Court in Principal CIT v. NRA Iron & Steel (P.) Ltd [2019] 4 SCC 25, which is binding in nature. I.T.A. No.308/CHNY/2023 30 17. He further placed reliance on latest case-laws upholding the same view. The Decision of ITAT Mumbai Bench 'H in the case of M/s. Hinduja Realty Ventures Ltd. [TS-565-ITAT-2019(Mum)] which is squarely applicable to the assessee's case in hand where the set of facts involved are identical. I…

ACIT Cir-1, Dhanbad vs. M/S Bharat Cooking Coal Ltd, Dhanbad

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

ITA 304/RAN/2017[14-15]Status: DisposedITAT Ranchi18 Aug 2023

Bench: Sri Rajesh Kumar & Sonjoy Sarma

Section 143(3)

…sessment Years: 2013-14 & 2014-15 M/s. Bharat Coking Coal Limited. 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 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 principles laid down in this test. What is mate…

ACIT Cir-1, Dhanbad vs. M/S Bharat Cooking Coal Ltd, Dhanbad

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

ITA 303/RAN/2017[13=14]Status: PendingITAT Ranchi18 Aug 2023

Bench: Sri Rajesh Kumar & Sonjoy Sarma

Section 143(3)

…sessment Years: 2013-14 & 2014-15 M/s. Bharat Coking Coal Limited. 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 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 principles laid down in this test. What is mate…

ACIT Circle-4(1), New Delhi vs. Ball Beverage Packaging (India) Pvt Ltd, New Delhi

In the result, the appeal of the Revenue stands dismissed and the

ITA 6680/DEL/2019[2015-16]Status: DisposedITAT Delhi26 Jul 2023AY 2015-16
For Appellant: Shri Salil Agarwal, Sr. AdvocateFor Respondent: Shri P. Praveen Sidharth, CIT DR
Section 143(3)Section 195Section 40

…e. Therefore, the finding of AO at page 3 of the order, that the said expenditure needs to be capitalized is misplaced in law and is based on misappreciation of facts. iv) Reliance is also placed on following case laws: • Empire Jute Co.vs CIT(SC) reported in 124 ITR 1. • L.H. Sugar Factory & Oil Mills (P.) Ltd. vs CIT (SC) reported in 125 ITR 293. v) Reliance is placed on the order of learned CIT (A) at page 3. 10. Upon careful consideration, we find that AO has erred in taking the property as ownership property of the assessee. Ld. CIT (A) has given a finding of fact that from the agreement of Infrastructure De…

Ball Beverage Packaging (India) Pvt Ltd, New Delhi vs. ACIT Circle-4(1), New Delhi

In the result, the appeal of the Revenue stands dismissed and the

ITA 6607/DEL/2019[2015-16]Status: DisposedITAT Delhi26 Jul 2023AY 2015-16
For Appellant: Shri Salil Agarwal, Sr. AdvocateFor Respondent: Shri P. Praveen Sidharth, CIT DR
Section 143(3)Section 195Section 40

…e. Therefore, the finding of AO at page 3 of the order, that the said expenditure needs to be capitalized is misplaced in law and is based on misappreciation of facts. iv) Reliance is also placed on following case laws: • Empire Jute Co.vs CIT(SC) reported in 124 ITR 1. • L.H. Sugar Factory & Oil Mills (P.) Ltd. vs CIT (SC) reported in 125 ITR 293. v) Reliance is placed on the order of learned CIT (A) at page 3. 10. Upon careful consideration, we find that AO has erred in taking the property as ownership property of the assessee. Ld. CIT (A) has given a finding of fact that from the agreement of Infrastructure De…

JCIT, Special Range-4, New Delhi vs. Hindustan Coca-Cola Beverages Pvt. Ltd., New Delhi

In the result, the appeal of the Revenue is partly allowed

ITA 5810/DEL/2018[2010-11]Status: DisposedITAT Delhi18 Jul 2023AY 2010-11

Bench: Shri N.K. Billaiya & Shri Anubhav Sharma

For Appellant: Shri Sachit Jolly, AdvFor Respondent: Shri Wasim Arshad, CIT- DR

…d deduction of Rs. 2,02,71,336/– on account of non-compete fee amortized in the computation of income. 5. The assessee was asked to justify its claim and the assessee relied upon the decision of the Hon'ble Supreme Court in the case of Empire Jute Company 124 ITR 1. It was explained that the payment of non-compete fees has been done to the shareholders/contractors of the bottling companies to facilitate the conduct of the assessee’s business more efficiently and more profitably, leaving the fees untouched. 6. The Assessing Officer found that this issue has been discussed in the earlier A.Y also and claim o…

Hindustan Coca-Cola Beverages Pvt. Ltd., New Delhi vs. Addl. CIT, Special Range- 4, New Delhi

In the result, the appeal of the Revenue is partly allowed

ITA 5671/DEL/2018[2010-11]Status: PendingITAT Delhi17 Jul 2023AY 2010-11

Bench: Shri N.K. Billaiya & Shri Anubhav Sharma

For Appellant: Shri Sachit Jolly, AdvFor Respondent: Shri Wasim Arshad, CIT- DR

…d deduction of Rs. 2,02,71,336/– on account of non-compete fee amortized in the computation of income. 5. The assessee was asked to justify its claim and the assessee relied upon the decision of the Hon'ble Supreme Court in the case of Empire Jute Company 124 ITR 1. It was explained that the payment of non-compete fees has been done to the shareholders/contractors of the bottling companies to facilitate the conduct of the assessee’s business more efficiently and more profitably, leaving the fees untouched. 6. The Assessing Officer found that this issue has been discussed in the earlier A.Y also and claim o…

The ACIT, Circle Morbi, Morbi vs. M/S. Vita Granito Pvt. Ltd., Morbi

In the result, the appeal of the Revenue is dismissed

ITA 126/RJT/2019[2008-09]Status: DisposedITAT Rajkot07 Jul 2023AY 2008-09

Bench: Smt.Annapurna Gupta & Shri T.R. Senthil Kumarassessment Year :2008-09 Acit, Morbi Circle Vs. M/S.Vita Granito P.Ltd. Morbi. B/H. Dariyalal Resort Village-Jambudiya Morbi. Pan : Aaccv 4765 A अपीलाथ"/ (Appellant) "" यथ"/(Respondent) Assessee By : Shri Mehul Ranpura, Ld.Ar Revenue By : Shri B.D. Gupta, Ld.Sr.Dr सुनवाई क" तार"ख/Date Of Hearing : 04/07/2023 घोषणा क" तार"ख /Date Of Pronouncement: 07/07/2023 आदेश/O R D E R Per Annapurna Guptapresent Appeal Has Been Filed By The Revenue Against Order Passed By The Ld.Commissioner Of Income Tax(Appeals)-3, Rajkot [Hereinafter Referred To As “Ld.Cit(A)Under Section 250(6) Of The Income Tax Act, 1961 ("The Act" For Short) Dated 14.3.2019 Pertaining To The Asst.Year 2008-09. 2. This Is A Recalled Matter. The Appeal Of The Revenue Was Earlier Dismissed On Account Of Low Tax Effect. However, Subsequently, The Department Filed An Ma Pleading That The Appeal Of The Revenue Could Not Be Dismissed On Account Of Low Tax Effect, Because, It Fell Within The Exceptions Provided In Para-8(C) Of The Board’S Instruction Directing Withdrawal Of Appeals On Account Of 2

For Appellant: Shri Mehul Ranpura, ld.ARFor Respondent: Shri B.D. Gupta, ld.Sr.DR
Section 250(6)Section 37Section 37(1)

…आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, राजकोट "यायपीठ आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण "यायपीठ "यायपीठ, , , , राजकोट "यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT (Conducted Through Virtual Court) BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER Assessment Year :2008-09 ACIT, Morbi Circle Vs. M/s.Vita Granito P.Ltd. Morbi. B/h. Dariyalal Resort Village-Jambudiya Morbi. PAN : AACCV 4765 A अपीलाथ"/ (Appellant) "" यथ"/(Respondent) Assessee by : Shri Mehul Ranpura, ld.AR Revenue by : Shri B.D. Gupta, ld.Sr.DR सुनवाई क" तार"ख/Date of Hearing : 04/07/…

The ACIT Cir 6(3), Mumbai vs. M/S. Grasim Industries Ltd, Mumbai

In the result, the appeal by the Revenue is dismissed

ITA 3854/MUM/2006[2005-2006]Status: DisposedITAT Mumbai04 Jul 2023AY 2005-2006

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

For Appellant: Shri J.D. Mistri a/wFor Respondent: Dr. Kishor Dhule
Section 142(1)Section 143(2)Section 143(3)Section 250Section 43B

…n case in A.Y. 1976-77 and no ground was taken by the Department before the Hon‘ble High Court. Similar issue has been decided by the Hon‘ble Grasim Industries Ltd. ITA no.3517/Mum./2006 ITA no.3854/Mum./2006 Supreme Court in the case of Empire Jute Co. Ltd., 124 ITR 1 (SC). Accordingly, we do not find any infirmity in the order of the ld. CIT(A) deleting the disallowance by observing that advertisement film was made only for advertisement and its useful life is very short and such films do not add to the capital structure of the company.‖ 95. Respectfully following the above decision, we do not find any reason t…

M/S. Grasim Industries Ltd., Mumbai vs. DCIT Cir - 6(3), Mumbai

In the result, the appeal by the Revenue is dismissed

ITA 3517/MUM/2006[2005-2006]Status: DisposedITAT Mumbai04 Jul 2023AY 2005-2006

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

For Appellant: Shri J.D. Mistri a/wFor Respondent: Dr. Kishor Dhule
Section 142(1)Section 143(2)Section 143(3)Section 250Section 43B

…n case in A.Y. 1976-77 and no ground was taken by the Department before the Hon‘ble High Court. Similar issue has been decided by the Hon‘ble Grasim Industries Ltd. ITA no.3517/Mum./2006 ITA no.3854/Mum./2006 Supreme Court in the case of Empire Jute Co. Ltd., 124 ITR 1 (SC). Accordingly, we do not find any infirmity in the order of the ld. CIT(A) deleting the disallowance by observing that advertisement film was made only for advertisement and its useful life is very short and such films do not add to the capital structure of the company.‖ 95. Respectfully following the above decision, we do not find any reason t…

Jt. CIT (Ods) - CC -1(4), Mumbai vs. Ultratech Cement Ltd., Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 222/MUM/2022[2014-15]Status: DisposedITAT Mumbai28 Jun 2023AY 2014-15

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon’Bledeputy Commissioner Of Income Tax V. M/S. Ultratech Cement Ltd., Central Circle- 1(4) Ahura Centre, B- Wing Room No. 902, 9Th Floor 2Nd Floor, Mahakali Caves Road Pratishtha Bhavan, Old C.G.O. Bldg, (Annexe) Andheri (E), Mumbai- 400093 M.K. Road, Mumbai- 400020 Pan: Aaacl6442L (Appellant) (Respondent) Jt. Commissioner Of Income Tax (Osd) V. M/S. Ultratech Cement Ltd. Central Circle- 1(4) Ahura Centre, B- Wing Room No. 902, 9Th Floor 2Nd Floor, Mahakali Caves Road Pratishtha Bhavan Andheri (E), Mumbai- 400093 Old C.G.O. Bldg, (Annexe) M.K. Road, Mumbai- 400020 Pan: Aaacl6442L (Appellant) (Respondent) & M/S. Ultratech Cement Limited V. Dcit, Central Circle- 1(4) [Acit, Cc] Room. No 902, 9Th Floor Ahura Centre, B-Wing, 2Nd Floor Pratishtha Bhavan Mahakali Caves Road Old C.G.O. Bldg, (Annexe) Andheri (E), Mumbai- 400093 Maharishi Karve Road Mumbai- 400020 Pan: Aaacl6442L (Appellant) (Respondent)

Section 143(3)Section 35D

…penditure is capital or revenue in nature. An expenditure which does not result in the acquisition of any permanent asset indicates that the expenditure incurred was of a revenue nature. 64. In the case Empire Jute Co Ltd v. Commissioner of Income Tax [1980] 124 ITR 1/3 Taxman 69, the Hon’ble Supreme Court held that the true test is to consider the nature of the advantage in a commercial sense and it is only where the advantage is in the capital field that the expenditure would be disallowable. It was observed as under: "...There may be cases where expenditure, even if incurred for obtaining advantage of endurin…

Ultra Tech Cement Limited, Mumbai vs. ACIT- CC 1(4), Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 220/MUM/2022[2014-15]Status: DisposedITAT Mumbai28 Jun 2023AY 2014-15

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon’Bledeputy Commissioner Of Income Tax V. M/S. Ultratech Cement Ltd., Central Circle- 1(4) Ahura Centre, B- Wing Room No. 902, 9Th Floor 2Nd Floor, Mahakali Caves Road Pratishtha Bhavan, Old C.G.O. Bldg, (Annexe) Andheri (E), Mumbai- 400093 M.K. Road, Mumbai- 400020 Pan: Aaacl6442L (Appellant) (Respondent) Jt. Commissioner Of Income Tax (Osd) V. M/S. Ultratech Cement Ltd. Central Circle- 1(4) Ahura Centre, B- Wing Room No. 902, 9Th Floor 2Nd Floor, Mahakali Caves Road Pratishtha Bhavan Andheri (E), Mumbai- 400093 Old C.G.O. Bldg, (Annexe) M.K. Road, Mumbai- 400020 Pan: Aaacl6442L (Appellant) (Respondent) & M/S. Ultratech Cement Limited V. Dcit, Central Circle- 1(4) [Acit, Cc] Room. No 902, 9Th Floor Ahura Centre, B-Wing, 2Nd Floor Pratishtha Bhavan Mahakali Caves Road Old C.G.O. Bldg, (Annexe) Andheri (E), Mumbai- 400093 Maharishi Karve Road Mumbai- 400020 Pan: Aaacl6442L (Appellant) (Respondent)

Section 143(3)Section 35D

…penditure is capital or revenue in nature. An expenditure which does not result in the acquisition of any permanent asset indicates that the expenditure incurred was of a revenue nature. 64. In the case Empire Jute Co Ltd v. Commissioner of Income Tax [1980] 124 ITR 1/3 Taxman 69, the Hon’ble Supreme Court held that the true test is to consider the nature of the advantage in a commercial sense and it is only where the advantage is in the capital field that the expenditure would be disallowable. It was observed as under: "...There may be cases where expenditure, even if incurred for obtaining advantage of endurin…

DCIT Cir 1(4), Mumbai vs. M/S. Ultratech Cement Ltd, Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 1789/MUM/2021[2013-14]Status: DisposedITAT Mumbai28 Jun 2023AY 2013-14

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon’Bledeputy Commissioner Of Income Tax V. M/S. Ultratech Cement Ltd., Central Circle- 1(4) Ahura Centre, B- Wing Room No. 902, 9Th Floor 2Nd Floor, Mahakali Caves Road Pratishtha Bhavan, Old C.G.O. Bldg, (Annexe) Andheri (E), Mumbai- 400093 M.K. Road, Mumbai- 400020 Pan: Aaacl6442L (Appellant) (Respondent) Jt. Commissioner Of Income Tax (Osd) V. M/S. Ultratech Cement Ltd. Central Circle- 1(4) Ahura Centre, B- Wing Room No. 902, 9Th Floor 2Nd Floor, Mahakali Caves Road Pratishtha Bhavan Andheri (E), Mumbai- 400093 Old C.G.O. Bldg, (Annexe) M.K. Road, Mumbai- 400020 Pan: Aaacl6442L (Appellant) (Respondent) & M/S. Ultratech Cement Limited V. Dcit, Central Circle- 1(4) [Acit, Cc] Room. No 902, 9Th Floor Ahura Centre, B-Wing, 2Nd Floor Pratishtha Bhavan Mahakali Caves Road Old C.G.O. Bldg, (Annexe) Andheri (E), Mumbai- 400093 Maharishi Karve Road Mumbai- 400020 Pan: Aaacl6442L (Appellant) (Respondent)

Section 143(3)Section 35D

…penditure is capital or revenue in nature. An expenditure which does not result in the acquisition of any permanent asset indicates that the expenditure incurred was of a revenue nature. 64. In the case Empire Jute Co Ltd v. Commissioner of Income Tax [1980] 124 ITR 1/3 Taxman 69, the Hon’ble Supreme Court held that the true test is to consider the nature of the advantage in a commercial sense and it is only where the advantage is in the capital field that the expenditure would be disallowable. It was observed as under: "...There may be cases where expenditure, even if incurred for obtaining advantage of endurin…

M/S. Ultratech Cement Ltd, Mumbai vs. DCIT Cent Cir-1(4), Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 1466/MUM/2021[2013-14]Status: DisposedITAT Mumbai28 Jun 2023AY 2013-14

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon’Bledeputy Commissioner Of Income Tax V. M/S. Ultratech Cement Ltd., Central Circle- 1(4) Ahura Centre, B- Wing Room No. 902, 9Th Floor 2Nd Floor, Mahakali Caves Road Pratishtha Bhavan, Old C.G.O. Bldg, (Annexe) Andheri (E), Mumbai- 400093 M.K. Road, Mumbai- 400020 Pan: Aaacl6442L (Appellant) (Respondent) Jt. Commissioner Of Income Tax (Osd) V. M/S. Ultratech Cement Ltd. Central Circle- 1(4) Ahura Centre, B- Wing Room No. 902, 9Th Floor 2Nd Floor, Mahakali Caves Road Pratishtha Bhavan Andheri (E), Mumbai- 400093 Old C.G.O. Bldg, (Annexe) M.K. Road, Mumbai- 400020 Pan: Aaacl6442L (Appellant) (Respondent) & M/S. Ultratech Cement Limited V. Dcit, Central Circle- 1(4) [Acit, Cc] Room. No 902, 9Th Floor Ahura Centre, B-Wing, 2Nd Floor Pratishtha Bhavan Mahakali Caves Road Old C.G.O. Bldg, (Annexe) Andheri (E), Mumbai- 400093 Maharishi Karve Road Mumbai- 400020 Pan: Aaacl6442L (Appellant) (Respondent)

Section 143(3)Section 35D

…penditure is capital or revenue in nature. An expenditure which does not result in the acquisition of any permanent asset indicates that the expenditure incurred was of a revenue nature. 64. In the case Empire Jute Co Ltd v. Commissioner of Income Tax [1980] 124 ITR 1/3 Taxman 69, the Hon’ble Supreme Court held that the true test is to consider the nature of the advantage in a commercial sense and it is only where the advantage is in the capital field that the expenditure would be disallowable. It was observed as under: "...There may be cases where expenditure, even if incurred for obtaining advantage of endurin…

DCIT Cir. 6 (3), Mumbai vs. M/S. Grasim Industries Ltd., Mumbai

In the result, the appeal by the Revenue is dismissed

ITA 4337/MUM/2005[2004-2005]Status: DisposedITAT Mumbai23 Jun 2023AY 2004-2005

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

For Appellant: Shri J.D. Mistri a/wFor Respondent: Dr. Kishore Dhule
Section 142(1)Section 143(2)Section 143(3)Section 250Section 43BSection 80Section 80HSection 80I

…the issue has already been settled by the Tribunal in assessee‘s own case in A.Y. 1976-77 and no ground was taken by the Department before the Hon‘ble High Court. Similar issue has been decided by the Hon‘ble Supreme Court in the case of Empire Jute Co. Ltd., 124 ITR 1 (SC). Accordingly, we do not find any infirmity in the order of the ld. CIT(A) deleting the disallowance by observing that advertisement film was made only for advertisement and its useful life is very short and such films do not add to the capital structure of the company.‖ 95. Respectfully following the above decision, we do not find any reason t…

M/S. Grasim Industries Ltd., Mumbai vs. DCIT CIT Cir. 6(3), Mumbai

In the result, the appeal by the Revenue is dismissed

ITA 3439/MUM/2005[2004-2005]Status: DisposedITAT Mumbai23 Jun 2023AY 2004-2005

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

For Appellant: Shri J.D. Mistri a/wFor Respondent: Dr. Kishore Dhule
Section 142(1)Section 143(2)Section 143(3)Section 250Section 43BSection 80Section 80HSection 80I

…the issue has already been settled by the Tribunal in assessee‘s own case in A.Y. 1976-77 and no ground was taken by the Department before the Hon‘ble High Court. Similar issue has been decided by the Hon‘ble Supreme Court in the case of Empire Jute Co. Ltd., 124 ITR 1 (SC). Accordingly, we do not find any infirmity in the order of the ld. CIT(A) deleting the disallowance by observing that advertisement film was made only for advertisement and its useful life is very short and such films do not add to the capital structure of the company.‖ 95. Respectfully following the above decision, we do not find any reason t…

DCIT, Circle-14(1)(2), Mumbai vs. M/S Experian Credit Information Company of India Private Limited, Mumbai

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

ITA 1146/MUM/2023[2018-2019]Status: DisposedITAT Mumbai22 Jun 2023AY 2018-2019

Bench: Shri Om Prakash Kant () & Shri Narender Kumar Choudhry () Assessment Year: 2018-19 Dcit, Circle-14(1)(2), M/S Experian Credit Information Room No. 455, 4Th Floor, Company Of India Pvt. Ltd., Aayakar Bhavan, M.K. Road, Vs. 5Th Floor, East Wing, Tower 3 Mumbai-400020. Equinox Business Park, Lbs Marg Kurla West Mumbai-400070. Pan No. Aabce 6822 A Appellant Respondent

For Appellant: NoneFor Respondent: Mr. B.K. Bagchi, DR
Section 10

…ture. Here we note that learned CIT(A) was rightly referred to the decision of Hon'ble Supreme Court in rightly referred to the decision of Hon'ble Supreme Court in rightly referred to the decision of Hon'ble Supreme Court in the case of Empire Jute Co. Ltd. (124 ITR 1). It may be the case of Empire Jute Co. Ltd. (124 ITR 1). It may be the case of Empire Jute Co. Ltd. (124 ITR 1). It may be gainful to refer to the exposition in the case of Empire Jute ul to refer to the exposition in the case of Empire Jute ul to refer to the exposition in the case of Empire Jute Co. Ltd. (supra) wherein it was observed that "the…

Wipro Limited, Bangalore vs. Assistant Commissioner of Income Tax, Circle-7(1)(1), Bangalore

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 370/BANG/2021[2016-17]Status: DisposedITAT Bangalore14 Jun 2023AY 2016-17

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahu

For Appellant: Shri Sandeep Huilgol, AdvocateFor Respondent: Dr. Manjunath Karkihallli, CIT(DR)(ITAT), Bengaluru
Section 10ASection 143(2)Section 143(3)Section 80G

…y year these Circuit Boards under go modification, changes. Therefore, the expenses incurred in this regard is in the nature of revenue expenditure. IT(TP)A No.370/Bang/2021 Page 24 of 110 12. The Apex Court in the case of Empire Jute Co. Ltd. v. CIT [1980] 124 ITR 1/3 Taxman 69 has held that, the decided cases have, from time to time, evolved various tests for distinguishing between capital and revenue expenditure but no test is paramount or conclusive. There is no all embracing formula which can provide a ready solution to the problem; no touchstone has been devised. Every case has to be decided on its own fa…