What is Gotan Lime Syndicate v. CIT authority for?

Royalty payments are considered revenue expenditure when they are directly proportional to the quantity of raw material extracted or produced, and are recurring in nature, reflecting an operational cost rather than the acquisition of a capital asset.

How many judgments cite Gotan Lime Syndicate v. CIT?

37 judgments on BharatTax cite Gotan Lime Syndicate v. CIT (59 ITR 718), spanning 2012 to 2026.

Which sections of the Income Tax Act does Gotan Lime Syndicate v. CIT come up under?

It is most often cited in judgments turning on Section 37(1), Section 143(3), Section 35ABB, Section 143(2), Section 2(14), Section 32.

Gotan Lime Syndicate v. CIT (59 ITR 718)

Asst.C.I.T., Bangalore vs. Sri. K.R. Kaviraj, Hospet

In the result, all the cross objections filed by the assessee are dismissed

ITA 364/BANG/2016[2010-11]Status: DisposedITAT Bangalore26 Dec 2017AY 2010-11

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri V.K.Gurunathan, AdvocateFor Respondent: Shri Nambirajan, Addl.CIT(DR)

Section 143(3)

…) wherein it was held that the amount paid for obtaining mining lease for 20 years was ITA Nos.362 to 366/2016 & CO No.2 to 6/Bang/2017 Page 6 of 9 held to be a capital expenditure. The Hon’ble Supreme Court, in the case of Gotan Lime Syndicate vs. CIT (1966) 59 ITR 718)(SC) held that rent paid for lime excavation was held to be revenue expenditure. Subsequently, the Hon’ble Apex Court held in the case of Aditya Minerals Pvt. Ltd. vs. CIT (236 ITR 39)(SC) perceived difference of opinion between co-ordinate benches of the Hon’ble Supreme Court in Pingle Industries (supra) and Gotan Lime Syndicate (supra) and there…

Asst.C.I.T., Bangalore vs. Sri. K.R. Kaviraj, Hospet

In the result, all the cross objections filed by the assessee are dismissed

ITA 363/BANG/2016[2009-10]Status: DisposedITAT Bangalore26 Dec 2017AY 2009-10

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri V.K.Gurunathan, AdvocateFor Respondent: Shri Nambirajan, Addl.CIT(DR)

Section 143(3)

…) wherein it was held that the amount paid for obtaining mining lease for 20 years was ITA Nos.362 to 366/2016 & CO No.2 to 6/Bang/2017 Page 6 of 9 held to be a capital expenditure. The Hon’ble Supreme Court, in the case of Gotan Lime Syndicate vs. CIT (1966) 59 ITR 718)(SC) held that rent paid for lime excavation was held to be revenue expenditure. Subsequently, the Hon’ble Apex Court held in the case of Aditya Minerals Pvt. Ltd. vs. CIT (236 ITR 39)(SC) perceived difference of opinion between co-ordinate benches of the Hon’ble Supreme Court in Pingle Industries (supra) and Gotan Lime Syndicate (supra) and there…

ACIT, New Delhi vs. M/S. Denso India Ltd., New Delhi

In the result ground No. 4 and 5 of the appeal of the revenue are dismissed

ITA 4365/DEL/2011[2005-06]Status: DisposedITAT Delhi05 Dec 2017AY 2005-06

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi

For Appellant: Shri Kanchal Kaushal, CAFor Respondent: Shri Amrendra Kumar, CIT DR

Section 92C

…Hon‟ble Delhi ITAT held the same to be a revenue expenditure. The observations of the ITAT are as follows: [Ref: Page 13-14 Para 6 of Case Law Compendium] “ Further we may refer the decision of the Apex Court in the case of Gotan Lime Syndicate v. CIT [1966] 59 ITR 718 in which it was also laid down that the amount of royalty has to be allowed as revenue expenditure, as the said expenditure was in relation with the excavation of raw material. More you take the more royalty you pay. This ratio is again applicable in the case as amount of royalty In the case is directly linked with the volume of contract products.…

ACIT, New Delhi vs. M/S Denso India Ltd., New Delhi

In the result ground No. 4 and 5 of the appeal of the revenue are dismissed

ITA 1751/DEL/2011[2004-05]Status: DisposedITAT Delhi05 Dec 2017AY 2004-05

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi

For Appellant: Shri Kanchal Kaushal, CAFor Respondent: Shri Amrendra Kumar, CIT DR

Section 92C

…Hon‟ble Delhi ITAT held the same to be a revenue expenditure. The observations of the ITAT are as follows: [Ref: Page 13-14 Para 6 of Case Law Compendium] “ Further we may refer the decision of the Apex Court in the case of Gotan Lime Syndicate v. CIT [1966] 59 ITR 718 in which it was also laid down that the amount of royalty has to be allowed as revenue expenditure, as the said expenditure was in relation with the excavation of raw material. More you take the more royalty you pay. This ratio is again applicable in the case as amount of royalty In the case is directly linked with the volume of contract products.…

DCIT Cir - 3(1), Mumbai vs. M/S. Gujarat Ambuja Cements Ltd., Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 1379/MUM/2007[2000-2001]Status: DisposedITAT Mumbai07 Apr 2017AY 2000-2001

Bench: Shri C.N.Prasad, Jm & Shri Rajesh Kumar, Am आयकर अपील सं/ I.T.A. No. 1379/Mum/2007 (िनधा"रण वष" / Assessment Year: 2000-01) बनाम/ Acit (Ltu) – 1 M/S. Gujarat Ambuja World Trade Centre, Cements Ltd. Vs. Centre – 1, 29Th Floor, 122, Maker Chambers-Iii, Cuffe Parade, Nariman Point, Mumbai - 400005 Mumbai - 400021 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacg0569P (अपीलाथ" /Appellant) (""थ" / Respondent) .. Revenue By: Shri Anand Mohan (Cit-Dr) Assessee By: Shri Soumen Adak सुनवाई की तारीख / Date Of Hearing: 12.01.2017 घोषणा की तारीख /Date Of Pronouncement: 07.04.2017 आदेश / O R D E R Per C.N.Prasad, Jm:

For Appellant: Shri Soumen AdakFor Respondent: Shri Anand Mohan (CIT-DR)

Section 115JSection 14ASection 271(1)(c)Section 80H

…nce of premium paid for lease hold land amounting to Rs.22,37,951/- taking into submission of the assessee that claim of exclusion of amount of premium on leasehold land was based on the decision of Apex Court int eh case of Goton Lime Syndicate Vs. CIT(1966) 59 ITR 718 (SC) was prevailing at the time of filing of return of income according to which it was allowable deduction but subsequently decision rendered by Apex Court in the case of Aditya Minerals Pvt. Ltd. Vs. CIT (1999) 236 ITR 39 (SC) and R.B.Seth Moolchand Suganchand Vs. CIT, 86 ITR 647 which were against assessee company and assessee had not made a cl…

Commissioner of Income Tax vs. Shri Krishan Kumar

The appeals stand dismissed

ITA - 50 / 2000HC Delhi02 Dec 2014

…less and as such, its life was very short. On this ground, the master plate was linked to a licence granted for a specific period for manufacture. The respondent- assessee relied upon the ruling of the Supreme Court in Gotan Lime Syndicate Vs. CIT, [1966] 59 ITR 718. It was also stressed that the payment of royalty was related to annual profits and therefore was 2014:DHC:6619-DB ITA No.50/2000 & connected appeals Page 8 of 33 revenue in nature. The Assessing Officer for the following reasoning concluded that the p…

Commissioner of Income Tax vs. Shri Krishan Kumar

The appeals stand dismissed

ITA/50/2000HC Delhi02 Dec 2014

…less and as such, its life was very short. On this ground, the master plate was linked to a licence granted for a specific period for manufacture. The respondent- assessee relied upon the ruling of the Supreme Court in Gotan Lime Syndicate Vs. CIT, [1966] 59 ITR 718. It was also stressed that the payment of royalty was related to annual profits and therefore was 2014:DHC:6619-DB ITA No.50/2000 & connected appeals Page 8 of 33 revenue in nature. The Assessing Officer for the following reasoning concluded that the p…