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

ACIT, Circle - Tinsukia, Tinsukia vs. M/S. Greenply Industries Ltd., Tinsukia

In the result, the appeal of the assessee for A

ITA 359/GTY/2019[2014-15]Status: DisposedITAT Guwahati21 Jun 2022AY 2014-15

Bench: Shri A.T. Varkey & Shri Manish Borad

Section 115JSection 143(2)Section 80ISection 92C

…or deduction under section 80IC and 80IE of the Act. Aggrieved, the assessee is in appeal before the Tribunal. 24. The ld. counsel for the assessee referring to the decision of the Hon’ble Supreme Court in the case of Empire Jute Co. Limited –vs.- CIT (1980) 124 ITR 1 (SC), the decision of the Coordinate Bench of Delhi in the case of ACIT –vs.- NIIT Technologies Limited (2021) 123 taxmann.com 135 (Delhi), decision of Coordinate Bench Ahmedabad in the case of DCIT –vs.- M/s. Adani Gas Limited (2018) ITA No. 775/Ahd./2014 (Ahmedabad- Tribunal); judgment of the Hon’ble Gujarat High Court in the case of DCIT-vs.- Su…

Greenply Industries Limited, Tinsukia vs. Assistant Commissioner of Income Tax, Circle-Tinsukia, Tinsukia

In the result, the appeal of the assessee for A

ITA 232/GTY/2019[2014-15]Status: DisposedITAT Guwahati21 Jun 2022AY 2014-15

Bench: Shri A.T. Varkey & Shri Manish Borad

Section 115JSection 143(2)Section 80ISection 92C

…or deduction under section 80IC and 80IE of the Act. Aggrieved, the assessee is in appeal before the Tribunal. 24. The ld. counsel for the assessee referring to the decision of the Hon’ble Supreme Court in the case of Empire Jute Co. Limited –vs.- CIT (1980) 124 ITR 1 (SC), the decision of the Coordinate Bench of Delhi in the case of ACIT –vs.- NIIT Technologies Limited (2021) 123 taxmann.com 135 (Delhi), decision of Coordinate Bench Ahmedabad in the case of DCIT –vs.- M/s. Adani Gas Limited (2018) ITA No. 775/Ahd./2014 (Ahmedabad- Tribunal); judgment of the Hon’ble Gujarat High Court in the case of DCIT-vs.- Su…

PCIT Mumbai 1 vs. Elel Hotels and Investments Ltd

ITA/160/2022HC Delhi31 May 2022

Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA

…not already own or possess. This Court is of the view that the respondent-assessee spent Rs.30.86 crores to facilitate its business and trading operations. Accordingly, the test of capital expenditure as stipulated in Empire Jute Co. Ltd. vs. CIT, (1980) 4 SCC 25, Commissioner of Income Tax vs. Madras Auto Service (P.) Ltd., (1998) 233 ITR 468, Commissioner of Income Tax, Bombay City-I vs. Associated Cement Companies Ltd., (1988) 172 ITR 257, Hindustan Times Ltd. vs. Commissioner of Income Tax, New Delhi, (1980) 122 ITR 977, CIT Vs. Bharat Aluminium Company Ltd., 2010 SCC OnLine Del 2618 is not satisfi…

PCIT Mumbai 1 vs. Elel Hotels and Investments Ltd

ITA-160/2022HC Delhi31 May 2022

…not already own or possess. This Court is of the view that the respondent-assessee spent Rs.30.86 crores to facilitate its business and trading operations. Accordingly, the test of capital expenditure as stipulated in Empire Jute Co. Ltd. vs. CIT, (1980) 4 SCC 25, Commissioner of Income Tax vs. Madras Auto Service (P.) Ltd., (1998) 233 ITR 468, Commissioner of Income Tax, Bombay City-I vs. Associated Cement Companies Ltd., (1988) 172 ITR 257, Hindustan Times Ltd. vs. Commissioner of Income Tax, New Delhi, (1980) 122 ITR 977, CIT Vs. Bharat Aluminium Company Ltd., 2010 SCC OnLine Del 2618 is not satisfi…

M/S. Wipro Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-7(1)(2), Bangalore

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

ITA 2556/BANG/2019[2015-16]Status: HeardITAT Bangalore23 May 2022AY 2015-16

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaranit(Tp)A No.2556/Bang/2019 Assessment Year : 2015-16

For Appellant: Shri S. Ganesh, Sr. ARFor Respondent: Shri T. Roumuan Paite, D.R
Section 143(3)

…IT(TP)A No.2556/Bang/2019 M/s. Wipro Limited, Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “A’’ BENCH: BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER IT(TP)A No.2556/Bang/2019 Assessment Year : 2015-16 M/s. Wipro Limited 76R & 80P, Doddakannellii Deputy Commissioner of Sarjapur Road Income-tax Vs. Bangalore 560 035 Circle-7(1)(2) Bangalore PAN NO : AAACW0387R APPELLANT RESPONDENT Appellant by : Shri S. Ganesh, Sr. AR Respondent by : Shri T. Roumuan Paite, D.R. Date of Hearing : 14.03.2022 Date of Pronouncement : 23.05.2022 O R D E R PER B.R. BASKARAN, AC…

Mahale Behr India Pvt.Ltd, (Formerly Known As Mahle Behr India Ltd), Pune vs. Deputy Commissioner of Income-Tax, Circle - 8, Pune

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

ITA 624/PUN/2018[2011-12]Status: DisposedITAT Pune17 May 2022AY 2011-12

Bench: Shri Inturi Rama Rao & Shri Sonjoy Sarmaआयकर अपील सं. / Ita No.624/Pun/2018 िनधा"रण वष" / Assessment Year: 2011-12 Mahale Behr India Pvt. Ltd., Vs. Dcit, Circle-8, (Formerly Known As Mahle Pune. Behr India Ltd.), 29 Milestone, Pune – Nashik Highway, Village- Kuruli, Taluka: Khed, Chakan, Pune- 410501. Pan : Aabcb2186L Appellant Respondent Assessee By : Shri R. D. Onkar Revenue By : Shri Sunil Kumar Date Of Hearing : 29.03.2022 Date Of Pronouncement : 17.05.2022 आदेश / Order Per Inturi Rama Rao, Am : This Is An Appeal Filed By The Assessee Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)- 6, Pune [‘The Cit(A)’] Dated 31.01.2018 For The Assessment Year 2011-12. 2. This Is A Recalled Matter. In The First Round Of Litigation Of Appeal, The Tribunal Vide Order Dated 31.08.2021 In Ita No.624/Pun/2018 For The Assessment Year 2011-12 Had Partly

For Appellant: Shri R. D. OnkarFor Respondent: Shri Sunil Kumar

…purpose of facilitating the existing business of manufacturing of automotive components and enabling the management to conduct the business operations more efficiently and productively. The Hon’ble Supreme Court in the case of (i) Empire Jute Co. Ltd. v. CIT, 124 ITR 1 and (ii) Alembic Chemical Works Co. Ltd. v. CIT, 177 ITR 377 (SC) held that expenditure incurred on the existing business incurred in connection with the existing business. Updating existing products should be allowed as revenue expenditure. Keeping in view the principles laid 6 down by the Hon’ble Karnataka High Court in the case of CIT vs. Tejas…

Additional Commissioner of Income Tax (Ltu), Bangalore vs. M/S Texas Instruments (India) Private Limited, Bangalore

In the result, appeal by the Revenue is dismissed

ITA 606/BANG/2019[2014-15]Status: DisposedITAT Bangalore17 May 2022AY 2014-15

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sappeal Nos. & Appellant Respondent Assessment Year Acit (Ltu)

For Appellant: Shri. Sharath Rao, CAFor Respondent: Mrs. Susan D. George, CIT (DR) (ITAT), Bengaluru

…dvantage or benefit of an enduring nature to TI India. In this regard, reliance was placed on the Honourable Supreme IT(TP)A Nos. 1967, 606,731,1446,1447/Bang/2019 ITA Nos. 365, 1075,1076/Bang-2019 Page 5 of 38 Court in the case of Empire Jute Co Ltd Vs CIT (124 ITR 1). The assessee had also cited several case laws to substantiate that the software expenditure has been held to be in the nature of revenue expenditure. 6. Furthermore, in the earlier two years i.e., AY 2008-09 and AY 2009- 10, the CIT(A) has held EDA expenses as being revenue in nature. Therefore, the issue is squarely covered in favour of the App…

M/S Texas Instruments India Pvt Ltd, Bangalore vs. Additional Commissioner of Income Tax Ltu, Bangalore

In the result, appeal by the Revenue is dismissed

ITA 365/BANG/2019[2014-15]Status: DisposedITAT Bangalore17 May 2022AY 2014-15

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sappeal Nos. & Appellant Respondent Assessment Year Acit (Ltu)

For Appellant: Shri. Sharath Rao, CAFor Respondent: Mrs. Susan D. George, CIT (DR) (ITAT), Bengaluru

…dvantage or benefit of an enduring nature to TI India. In this regard, reliance was placed on the Honourable Supreme IT(TP)A Nos. 1967, 606,731,1446,1447/Bang/2019 ITA Nos. 365, 1075,1076/Bang-2019 Page 5 of 38 Court in the case of Empire Jute Co Ltd Vs CIT (124 ITR 1). The assessee had also cited several case laws to substantiate that the software expenditure has been held to be in the nature of revenue expenditure. 6. Furthermore, in the earlier two years i.e., AY 2008-09 and AY 2009- 10, the CIT(A) has held EDA expenses as being revenue in nature. Therefore, the issue is squarely covered in favour of the App…

Joint Commissioner of Income Tax, Ltu, Bangalore vs. M/S. Texas Instruments (India) Private Limited, Bangalore

In the result, appeal by the Revenue is dismissed

ITA 1447/BANG/2019[2013-14]Status: DisposedITAT Bangalore17 May 2022AY 2013-14

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sappeal Nos. & Appellant Respondent Assessment Year Acit (Ltu)

For Appellant: Shri. Sharath Rao, CAFor Respondent: Mrs. Susan D. George, CIT (DR) (ITAT), Bengaluru

…dvantage or benefit of an enduring nature to TI India. In this regard, reliance was placed on the Honourable Supreme IT(TP)A Nos. 1967, 606,731,1446,1447/Bang/2019 ITA Nos. 365, 1075,1076/Bang-2019 Page 5 of 38 Court in the case of Empire Jute Co Ltd Vs CIT (124 ITR 1). The assessee had also cited several case laws to substantiate that the software expenditure has been held to be in the nature of revenue expenditure. 6. Furthermore, in the earlier two years i.e., AY 2008-09 and AY 2009- 10, the CIT(A) has held EDA expenses as being revenue in nature. Therefore, the issue is squarely covered in favour of the App…

Joint Commissioner of Income Tax, Ltu, Bangalore vs. M/S. Texas Instruments (India) Private Limited, Bangalore

In the result, appeal by the Revenue is dismissed

ITA 1446/BANG/2019[2012-13]Status: DisposedITAT Bangalore17 May 2022AY 2012-13

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sappeal Nos. & Appellant Respondent Assessment Year Acit (Ltu)

For Appellant: Shri. Sharath Rao, CAFor Respondent: Mrs. Susan D. George, CIT (DR) (ITAT), Bengaluru

…dvantage or benefit of an enduring nature to TI India. In this regard, reliance was placed on the Honourable Supreme IT(TP)A Nos. 1967, 606,731,1446,1447/Bang/2019 ITA Nos. 365, 1075,1076/Bang-2019 Page 5 of 38 Court in the case of Empire Jute Co Ltd Vs CIT (124 ITR 1). The assessee had also cited several case laws to substantiate that the software expenditure has been held to be in the nature of revenue expenditure. 6. Furthermore, in the earlier two years i.e., AY 2008-09 and AY 2009- 10, the CIT(A) has held EDA expenses as being revenue in nature. Therefore, the issue is squarely covered in favour of the App…

M/S. Texas Instruments (India) Private Limited, Bangalore vs. Joint Commissioner of Income Tax, Ltu, Bangalore

In the result, appeal by the Revenue is dismissed

ITA 1076/BANG/2019[2013-14]Status: DisposedITAT Bangalore17 May 2022AY 2013-14

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sappeal Nos. & Appellant Respondent Assessment Year Acit (Ltu)

For Appellant: Shri. Sharath Rao, CAFor Respondent: Mrs. Susan D. George, CIT (DR) (ITAT), Bengaluru

…dvantage or benefit of an enduring nature to TI India. In this regard, reliance was placed on the Honourable Supreme IT(TP)A Nos. 1967, 606,731,1446,1447/Bang/2019 ITA Nos. 365, 1075,1076/Bang-2019 Page 5 of 38 Court in the case of Empire Jute Co Ltd Vs CIT (124 ITR 1). The assessee had also cited several case laws to substantiate that the software expenditure has been held to be in the nature of revenue expenditure. 6. Furthermore, in the earlier two years i.e., AY 2008-09 and AY 2009- 10, the CIT(A) has held EDA expenses as being revenue in nature. Therefore, the issue is squarely covered in favour of the App…

M/S. Texas Instruments (India) Private Limited, Bangalore vs. Joint Commissioner of Income Tax, Ltu, Bangalore

In the result, appeal by the Revenue is dismissed

ITA 1075/BANG/2019[2012-13]Status: DisposedITAT Bangalore17 May 2022AY 2012-13

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sappeal Nos. & Appellant Respondent Assessment Year Acit (Ltu)

For Appellant: Shri. Sharath Rao, CAFor Respondent: Mrs. Susan D. George, CIT (DR) (ITAT), Bengaluru

…dvantage or benefit of an enduring nature to TI India. In this regard, reliance was placed on the Honourable Supreme IT(TP)A Nos. 1967, 606,731,1446,1447/Bang/2019 ITA Nos. 365, 1075,1076/Bang-2019 Page 5 of 38 Court in the case of Empire Jute Co Ltd Vs CIT (124 ITR 1). The assessee had also cited several case laws to substantiate that the software expenditure has been held to be in the nature of revenue expenditure. 6. Furthermore, in the earlier two years i.e., AY 2008-09 and AY 2009- 10, the CIT(A) has held EDA expenses as being revenue in nature. Therefore, the issue is squarely covered in favour of the App…

Joint Commissioner of Income-Tax(Ltu), Bangalore vs. M/S. Texas Instruments(India) Pvt. Ltd, Bangalore

In the result, appeal by the Revenue is dismissed

ITA 1967/BANG/2018[2010-11]Status: DisposedITAT Bangalore17 May 2022AY 2010-11

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sappeal Nos. & Appellant Respondent Assessment Year Acit (Ltu)

For Appellant: Shri. Sharath Rao, CAFor Respondent: Mrs. Susan D. George, CIT (DR) (ITAT), Bengaluru

…dvantage or benefit of an enduring nature to TI India. In this regard, reliance was placed on the Honourable Supreme IT(TP)A Nos. 1967, 606,731,1446,1447/Bang/2019 ITA Nos. 365, 1075,1076/Bang-2019 Page 5 of 38 Court in the case of Empire Jute Co Ltd Vs CIT (124 ITR 1). The assessee had also cited several case laws to substantiate that the software expenditure has been held to be in the nature of revenue expenditure. 6. Furthermore, in the earlier two years i.e., AY 2008-09 and AY 2009- 10, the CIT(A) has held EDA expenses as being revenue in nature. Therefore, the issue is squarely covered in favour of the App…

Deputy Commissioner of Income Tax Central Circle-1(4), Mumbai vs. Samruddhi Cement Limited (Since Amalgamated Into M/S.Ultratech Cement Limited), Mumbai

In the result, both the appeals of the Revenue are dismissed

ITA 5318/MUM/2017[2011-12]Status: DisposedITAT Mumbai05 May 2022AY 2011-12
Section 139(1)Section 143(3)Section 43Section 43B

…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.” 5.2. Respectfully following the aforesaid judicial precedent, the ground N…

Deputy Commissioner of Income Tax Central Circle-1(4), Mumbai vs. Samruddhi Cement Limited (Since Amalgamated Into M/S.Ultratech Cement Limited), Mumbai

In the result, both the appeals of the Revenue are dismissed

ITA 4835/MUM/2017[2010-11]Status: DisposedITAT Mumbai05 May 2022AY 2010-11
Section 139(1)Section 143(3)Section 43Section 43B

…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.” 5.2. Respectfully following the aforesaid judicial precedent, the ground N…

Ascendas It Park (Pune) Private Limited, Pune vs. Deputy Commissioner of Income Tax, Pune

In the result, the appeal filed by the assessee stands dismissed

ITA 966/PUN/2017[2013-14]Status: DisposedITAT Pune27 Apr 2022AY 2013-14

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Raviआयकर अपील सं. / Ita No.966/Pun/2017 िनधा"रण वष" / Assessment Year: 2013-14 Ascendas It Park (Pune) Vs. Dcit, Circle- 1(1), Private Limited, Pune. Unit No.607 & 608, 6Th Floor, Amar Business Park, Survey No.105 (3), Baner, Pune- 411045. Pan : Aafca4840E Appellant Respondent Assessee By : Smt. Chandni Shah Revenue By : Shri M. G. Jasnani Date Of Hearing : 22.03.2022 Date Of Pronouncement : 27.04.2022 आदेश / Order Per Inturi Rama Rao, Am: This Is An Appeal Filed By The Assessee Directed Against The Order Of Ld. Commissioner Of Income Tax (Appeals)- 1, Pune [‘Cit(A)’ For Short] Dated 31.01.2017 For The Assessment Year 2013-14. 2. The Appellant Raised The Following Ground Of Appeal :- “Ground 1: Treating General Management Fees Paid By The Appellant To Be Capital In Nature On The Facts & Circumstances Of The Case & In Law, The Learned Commissioner Of Income Tax (Appeals) Erred In Confirming The Action

For Appellant: Smt. Chandni ShahFor Respondent: Shri M. G. Jasnani
Section 143(3)

…carry on the business of the assessee does not result into creation of any capital assets and, therefore, the same should be allowed as revenue expenses placing reliance on the decision of the Hon’ble Supreme Court in the case of Empire Jute Co. Ltd. vs. CIT, 124 ITR 1 (SC), also the decision of the Hon’ble Delhi High Court in the case of ACIT vs. Asahi India Safety Glass, 15 taxmann.com 4 382 (Delhi) and the decision of the Hon’ble Punjab & Haryana High Court in the case of CIT vs. Oriental Carpet Manufactures (India) P. Ltd., 86 ITR 543 (P&H). It was also pleaded that similar expenditure incurred in the earlie…

Tpr Autoparts Mfg India Pvt. Ltd., New Delhi vs. DCIT, Circle- 25(1), New Delhi

In the result, the appeal of the assessee is allowed for

ITA 7100/DEL/2018[2012-13]Status: HeardITAT Delhi21 Apr 2022AY 2012-13
Section 143(3)

…CIT vs. Jagatjit Industries Ltd. [2000] 241 ITR 556 (Delhi) (ix) CIT vs. Super Cassettes Industries Ltd. in ITA NO. 171/2010 dated. 17.10.2011 (Del) (x) CIT vs. Sunbeam Auto Ltd. [2018] 89 taxmann.com 191(Delhi) (xi) Empire Jute Co. Ltd. vs. CIT reported in 124 ITR 1(SC) 14. The ld. DR, on the other hand, has heavily relied on the orders of the AO and CIT(A) 15. We have considered rival arguments made by both the sides, perused the orders of the AO and CIT(A) and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. We find, the AO in the instant case ha…

Wipro Finance Ltd vs. The Commissioner of Income Tax, Bangalore

The appeal is allowed in terms of the signed

C.A. No.-006677-006677 - 2008Supreme Court12 Apr 2022
Section 143(1)(a)Section 254Section 37Section 43A

…1 REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 6677 OF 2008 WIPRO FINANCE LTD. …APPELLANT VERSUS COMMISSIONER OF INCOME TAX …RESPONDENTS O R D E R 1. This appeal takes exception to the judgment and order dated 2.4.2008 passed by the Division Bench of the High Court of Karnataka at Bengaluru in I.T.A. No. 633/2004. 2. Briefly stated, the appellant company submitted returns of income on 29.11.1997 for the assessment year 1997­1998, mentioning loss of income, amongst others, owing to exchange fluctuation of Rs.1,10,53,909/­. A…

ACIT, Circle-8(1), New Delhi vs. Efs Facilities Services (India) Pvt. Ltd., New Delhi

In the result, both the appeals of the Revenue for assessment year

ITA 8347/DEL/2018[2014-15]Status: DisposedITAT Delhi11 Apr 2022AY 2014-15

Bench: Dr. B.R.R. Kumar & Ms. Astha Chandra

For Appellant: Shri Abhishek Jain, CAFor Respondent: Shri Sandeep Kumar Mishra, Sr. DR
Section 92C

…t of a permanent nature in favour of the appellant. Hence the expenditure is revenue expenditure and fall within the ambit of the section 37(1) of the Act. The appellant also placed reliance on the following judgments: • In Empire Jute Co. Ltd. v. CIT [1980] 124 ITR 1 • [1996] 218 ITR 427 (MAD.) HIGH COURT OF MADRAS CIT v. Aquapump Industries • [2010] 323 ITR 498 (MP) HIGH COURT OF MADHYA PRADESH CIT v. Khemchand and Motilal Jain Tobacco Products (P.) Ltd. which held that payment of royalty for use of trade mark is allowable as revenue expenditures. • [1998] 231 ITR 598 (Gujarat) High Court Of Gujarat CIT v. Rai…

ACIT, Circle-8(1), New Delhi vs. Efs Facilities Services (India) Pvt. Ltd., New Delhi

In the result, both the appeals of the Revenue for assessment year

ITA 8346/DEL/2018[2013-14]Status: DisposedITAT Delhi11 Apr 2022AY 2013-14

Bench: Dr. B.R.R. Kumar & Ms. Astha Chandra

For Appellant: Shri Abhishek Jain, CAFor Respondent: Shri Sandeep Kumar Mishra, Sr. DR
Section 92C

…t of a permanent nature in favour of the appellant. Hence the expenditure is revenue expenditure and fall within the ambit of the section 37(1) of the Act. The appellant also placed reliance on the following judgments: • In Empire Jute Co. Ltd. v. CIT [1980] 124 ITR 1 • [1996] 218 ITR 427 (MAD.) HIGH COURT OF MADRAS CIT v. Aquapump Industries • [2010] 323 ITR 498 (MP) HIGH COURT OF MADHYA PRADESH CIT v. Khemchand and Motilal Jain Tobacco Products (P.) Ltd. which held that payment of royalty for use of trade mark is allowable as revenue expenditures. • [1998] 231 ITR 598 (Gujarat) High Court Of Gujarat CIT v. Rai…