Empire Jute Co. Ltd. v. CIT

Assistant Commissioner of Income-Tax, Circle - 9, Pune vs. M/S. Mercedes Benz India Pvt.Ltd, Pune

In the result, appeal of the Revenue is dismissed

…ed the same. Hence, there is no merit in the stand of authorities below in disallowing the same on the ground that the said expenditure may have enduring benefit to the business of assessee. 24. The Hon'ble Supreme Court in Empire Jute Co. Ltd. Vs. CIT (1980) 124 ITR 1 (SC) had laid down that test of enduring benefit cannot be applied blindly and mechanically, without regard to particular facts and circumstances. Merely because the aforesaid expenditure results in an enduring benefit would not make such expenditure as capital in nature, as while allowing any expenditure in the hands of assessee, the intent and pu…

Assistant Commissioner of Income-Tax, Circle - 6, Pune vs. Soft Tech Engineers Pvt.Ltd, Pune

In the result, Appeal of the Revenue is dismissed

Bench: Shri S.S.Godara & Dr. Dipak P. Ripoteआयकरअपीलसं. / Ita No.2581/Pun/2017 िनधा"रणवष" /Assessment Year: 2014-15 The Assistant Soft Tech Engineering Pvt. Ltd., Commissioner Of Income Vs Unit-5A, The Pentagon, Tax, Shahu College Road, Near Satara Circle-6, Pune. Road, Telephone Exchange, Pune – 411009. Pan: Aaccs 3857 L Appellant/ Revenue Respondent/ Assessee Assessee By Shri Nikhil Mutha – Ar Revenue By Shri S P Walimbe – Dr Date Of Hearing 06/06/2022 Date Of Pronouncement 22/07/2022 आदेश/ Order Per Dr.Dipak P.Ripote, Am: This Appeal Filed By The Revenue Is Directed Against The Order Of Ld.Commissioner Of Income-Tax(Appeals)-4, Pune’S Order Dated 30.05.2017 ,Involving Proceedings Under Section 143(3) Of The Income Tax Act, 1961, For The Assessment Year 2014-15. The Revenue Has Raised The Following Grounds Of Appeal: “1. On The Facts & In The Circumstances Of The Case, The Ld.Commissioner Of Income Tax(A) Has Erred In Allowing The Amount Of Rs.3,13,93,146/- Being Claim For Professional Fees & Contracting Expenses & Rs.61,03,239/- Being Managerial Expenses Relating To Software Development While The Same Should Be Capitalized & Not To Be Allowed As Revenue Expenses.

…(A). We have studied the copies of the invoices, copies of the agreements submitted by the assessee. On studying these documents, we are of the opinion that no enduring benefits arises out of these services. 7.1. In the case of Empire Jute Co Ltd Vs CIT (1980)124 ITR 1 Hon’ble SC has observed in para 7 as under : ITA No.2581/PUN/2017 for A.Y.2014-15 ACIT, Circle-6, Pune Vs.Soft Tech Engineers Pvt. Ltd.,(R) Quote “When dealing with cases where the question is whether expenditure incurred by an assesses is capital or revenue expenditure, the question must be viewed in the larger context of business necessity or e…

Mercedes-Benz India Private Limited, Pune vs. Deputy Commissioner of Income Tax, Pune

The appeal of the assessee is partly allowed for statistical purposes

…ed the same. Hence, there is no merit in the stand of authorities below in disallowing the same on the ground that the said expenditure may have enduring benefit to the business of assessee. 24. The Hon'ble Supreme Court in Empire Jute Co. Ltd. Vs. CIT (1980) 124 ITR 1 (SC) had laid down that test of enduring benefit cannot be applied blindly and mechanically, without regard to particular facts and circumstances. Merely because the aforesaid expenditure results in an enduring benefit would not make such expenditure as capital in nature, as while allowing any expenditure in the hands of assessee, the intent and pu…