(i) CIT v. East India Hotels Ltd.

334 ITR 109High Court2011#3314 most cited

What is (i) CIT v. East India Hotels Ltd. authority for?

Expenditure incurred in raising loans through convertible debentures is admissible as revenue expenditure.

36

judgments rely on this decision, according to BharatTax’s citation analysis of 366,369 Indian tax judgments — from 2012 to 2026.

Also referred to as

CIT v. East India Hotels Ltd. · expenditure on convertible debentures · revenue expenditure · admissibility of expenditure · loan raising expenses · Calcutta High Court

Sections most often in play

Section 1961Section 14ASection 37(1)Section 135 of Companies ActSection 143(3) of Income-tax ActSection 145Section 145 of Income-tax ActSection 147

Issues it is cited on

section 36(2)section 234dinterest on interestdisallowance under section 40(a)(ia)additional depreciationsection 40a(2)(b)section 139(5)statutory duessection 244asection 40a(2)section 36(1)(vii)icds

Judgments citing (i) CIT v. East India Hotels Ltd.

ACIT, New Delhi vs. M/S. Moser Baer India Limited, New Delhi

Appeal is dismissed

ITA 1200/DEL/2014[2009-10]Status: DisposedITAT Delhi03 Oct 2018AY 2009-10

Bench: Shri N. K. Saini & Ms Suchitra Kamblemoserbaer India Ltd. Vs Assistant Commissioner Of Tax, 43-A, Okhla Indl Area, Income Tax Phase-Iii Circle 5(1) New Delhi-110020 New Delhi Aaam0322J (Respondent) (Appellant) Moserbaer India Ltd. Vs Assistant Commissioner Of Tax, 43-A, Okhla Indl Area, Income Tax Phase-Iii Circle 5(1) New Delhi-110020 New Delhi Aaam0322J (Respondent) (Appellant) Astt. Commissioner Of Income Tax Vs Moserbaer India Ltd. Circle 5(1) Tax, 43-A, Okhla Indl Area, New Delhi Phase-Iii New Delhi-110020 (Appellant) Aaam0322J (Respondent) Moserbaer India Ltd. Vs Dcit Tax, 43-A, Okhla Indl Area, Circle 17(1) Phase-Iii New Delhi New Delhi-110020 (Respondent) Aaam0322J (Appellant)

Section 10BSection 143Section 144CSection 14A

…Rajasthan High Court) - SLP dismissed in CC No.10548/ 2009 • CIT vs. First Leasing Co. India Limited: 304 ITR 67 (Madras High Court) • CIT vs. Southern Petrochemical Industries Corporation Limited: 311 ITR 202 (Madras High Court) • CIT vs. ITC Hotels Limited: 334 ITR 109 (Karnataka High Court) • CIT vs. Sukhjit Starch & Chemicals Limited: 326 ITR 29 (Punjab & Haryana High Court) • Mahindra & Mahindra Limited Vs JCIT: 36 SOT 348 (Mumbai ITAT) • CIT vs. Reliance Natural Resources Limited: 166 ITD 385 (Mumbai ITAT) In view of the aforesaid judicial precedents, the Ld. AR submitted that the expenses incurred by asse…

Moserbaer India Ltd., New Delhi vs. ACIT, New Delhi

Appeal is dismissed

ITA 6042/DEL/2012[2008-09]Status: DisposedITAT Delhi03 Oct 2018AY 2008-09

Bench: Shri N. K. Saini & Ms Suchitra Kamblemoserbaer India Ltd. Vs Assistant Commissioner Of Tax, 43-A, Okhla Indl Area, Income Tax Phase-Iii Circle 5(1) New Delhi-110020 New Delhi Aaam0322J (Respondent) (Appellant) Moserbaer India Ltd. Vs Assistant Commissioner Of Tax, 43-A, Okhla Indl Area, Income Tax Phase-Iii Circle 5(1) New Delhi-110020 New Delhi Aaam0322J (Respondent) (Appellant) Astt. Commissioner Of Income Tax Vs Moserbaer India Ltd. Circle 5(1) Tax, 43-A, Okhla Indl Area, New Delhi Phase-Iii New Delhi-110020 (Appellant) Aaam0322J (Respondent) Moserbaer India Ltd. Vs Dcit Tax, 43-A, Okhla Indl Area, Circle 17(1) Phase-Iii New Delhi New Delhi-110020 (Respondent) Aaam0322J (Appellant)

Section 10BSection 143Section 144CSection 14A

…Rajasthan High Court) - SLP dismissed in CC No.10548/ 2009 • CIT vs. First Leasing Co. India Limited: 304 ITR 67 (Madras High Court) • CIT vs. Southern Petrochemical Industries Corporation Limited: 311 ITR 202 (Madras High Court) • CIT vs. ITC Hotels Limited: 334 ITR 109 (Karnataka High Court) • CIT vs. Sukhjit Starch & Chemicals Limited: 326 ITR 29 (Punjab & Haryana High Court) • Mahindra & Mahindra Limited Vs JCIT: 36 SOT 348 (Mumbai ITAT) • CIT vs. Reliance Natural Resources Limited: 166 ITD 385 (Mumbai ITAT) In view of the aforesaid judicial precedents, the Ld. AR submitted that the expenses incurred by asse…

M/S Country Club India Limited, Hyderabad vs. DCIT, Circle-3(2), Hyderabad

In the result, the grounds of the appeal of the assessee on this issue are allowed

ITA 1714/HYD/2014[2010-11]Status: DisposedITAT Hyderabad22 May 2018AY 2010-11

Bench: Smt. P. Madhavi Devi & Shri S.Rifaur Rahmancountry Club Hospitality & Vs Dy. Commissioner Of Income Holidays Ltd (Formerly Tax, Circle 3 (2) Known As Country Club Hyderabad India Ltd) Hyderabad Pan: Aaacc8276B (Appellant) (Respondent)

For Appellant: Shri P. Murali Mohan RaoFor Respondent: Dr. K. Srinivas Reddy, DR
Section 143(3)Section 40A(3)

…a Hotels Ltd., (2001) 119 Taxman 235 (Cal.) 4. CIT vs. South India Corpn. (Agencies) Ltd., (2007) 164 Taxman 249 (Mad.) 5. CIT vs. First Leasing Co. of India Ltd., (2008) 304 ITR 67 (Mad.) 6. CIT vs. Secure Meters Ltd., 321 ITR 611 7. CIT vs. ITC Hotels Ltd., 334 ITR 109 8. M/s. Crane Software International Ltd. vs. DCIT, Bangalore Order dated 08.02.2011 in ITA.Nos. 741 & 742/Bang/2010. 9. CIT vs. Havells India Ltd., 352 ITR 376 Page 14 of 18 ITA No 1714 of 2014 Country Club India Ltd Hyderabad. 10. DCIT vs. UAG Builders (P) Ltd., Delhi (2012) 25 taxmann.com 205 (Del.) 3.1. Further he has also relied upon th…

Dy.CIT, Cir-1(2), Hyderabad vs. M/S Cuntry Club (I) Limited, Hyderabad

In the result, the grounds of the appeal of the assessee on this issue are allowed

ITA 1735/HYD/2012[2009-10]Status: DisposedITAT Hyderabad22 May 2018AY 2009-10

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahmanassessment Year: 2009-10 M/S Country Club Vs. Asst. Cit, Circle-1(2), Hospitality & Holidays Ltd., Hyderabad. (Formerly Known As Country Club India Ltd.,) Hyderabad.

For Appellant: Shri P. Murali Mohan RaoFor Respondent: Dr. K. Srinivas Reddy
Section 40Section 40A(3)Section 43B

…tels Ltd., (2001) 119 Taxman 235 (Cal.) 4. CIT vs. South India Corpn. (Agencies) Ltd., (2007) 164 Taxman 249 (Mad.) 5. CIT vs. First Leasing Co. of India Ltd., (2008) 304 ITR 67 (Mad.) 6. CIT vs. Secure Meters Ltd., 321 ITR 611 7. CIT vs. ITC Hotels Ltd., 334 ITR 109 8. M/s. Crane Software International Ltd. vs. DCIT, Bangalore Order dated 08.02.2011 in ITA.Nos. 741 & 742/Bang/2010. 9. CIT vs. Havells India Ltd., 352 ITR 376 10. DCIT vs. UAG Builders (P) Ltd., Delhi (2012) 25 taxmann.com 205 (Del.) 27 ITA.Nos.1689 & 1735 /Hyd/2012, M/s Country Club Hospitality and Holidays Ltd., Hyderabad. 3.1. Further he…

M/S. Country Club India Ltd., Hyderabad vs. ACIT, Circle-1(2), Hyderabad

In the result, the grounds of the appeal of the assessee on this issue are allowed

ITA 1689/HYD/2012[2009-10]Status: DisposedITAT Hyderabad22 May 2018AY 2009-10

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahmanassessment Year: 2009-10 M/S Country Club Vs. Asst. Cit, Circle-1(2), Hospitality & Holidays Ltd., Hyderabad. (Formerly Known As Country Club India Ltd.,) Hyderabad.

For Appellant: Shri P. Murali Mohan RaoFor Respondent: Dr. K. Srinivas Reddy
Section 40Section 40A(3)Section 43B

…tels Ltd., (2001) 119 Taxman 235 (Cal.) 4. CIT vs. South India Corpn. (Agencies) Ltd., (2007) 164 Taxman 249 (Mad.) 5. CIT vs. First Leasing Co. of India Ltd., (2008) 304 ITR 67 (Mad.) 6. CIT vs. Secure Meters Ltd., 321 ITR 611 7. CIT vs. ITC Hotels Ltd., 334 ITR 109 8. M/s. Crane Software International Ltd. vs. DCIT, Bangalore Order dated 08.02.2011 in ITA.Nos. 741 & 742/Bang/2010. 9. CIT vs. Havells India Ltd., 352 ITR 376 10. DCIT vs. UAG Builders (P) Ltd., Delhi (2012) 25 taxmann.com 205 (Del.) 27 ITA.Nos.1689 & 1735 /Hyd/2012, M/s Country Club Hospitality and Holidays Ltd., Hyderabad. 3.1. Further he…

Tata Moters Limited (Formerly Known As Tata Engineering & Locomotive Company Ltd.), Mumbai vs. ACIT, Range.-2(3), Mumbai

In the result the ground of appeal raised by assessee is allowed

ITA 3336/MUM/2011[2005-06]Status: DisposedITAT Mumbai13 Apr 2018AY 2005-06

Bench: Shri Rajendra & Shri Pawan Singhtata Motors Limited. Dcit -2(3) Bombay House, 24, Homi Mody Aayakar Bhavan, M.K. Road, Street, Hutatma Chowk, Vs. Mumbai-20. Mumbai-400001 Pan:Aaact2727Q (Appellant) (Respondent) Tata Motors Limited. Acit -2(3) Bombay House, 24, Homi Mody Aayakar Bhavan, M.K. Road, Street, Hutatma Chowk, Mumbai-20. Vs. Mumbai-400001 Pan:Aaact2727Q (Appellant) (Respondent) Acit -2(3) Tata Motors Limited. R. No. 552, Aayakar Bhavan, Bombay House, 24, Homi Mody Mumbai. Vs. Street, Hutatma Chowk, Mumbai-400001 Pan:Aaact2727Q (Appellant) (Respondent) Assessee By : Ms. Arati Vissanji (Ar) Revenue By : Shri Manjunatha Swamy (Cit-Dr) Date Of Hearing : 11.04.2018 Date Of Pronouncement : 13.04.2018

For Appellant: Ms. Arati Vissanji (AR)For Respondent: Shri Manjunatha Swamy (CIT-DR)
Section 143(3)Section 14ASection 253Section 254(1)

…and the decision of Hon'ble Bombay High Court in Tata SSL Ltd. in ITA No. 449 of 2011 dated 05.11.2012. The ld. AR of the assessee also relied upon the decision of Hon’ble Supreme Court in case of India Cements Ltd. Vs CIT 60 ITR 52, CIT Vs ITC Hotel Ltd. 334 ITR 109 (Kar), CIT Vs Havells India Ltd. 352 ITR 376 (Del.), CIT Vs Instrumentation Ltd. (37 taxmann.com 271 (Raj.) and CIT Vs Sukhjit Starch & Chemicals Ltd. 326 ITR 29 (P & H). The ld. DR for the Revenue fairly conceded that this ground of appeal is also covered in favour of assessee. 10. We have considered the submission of ld. representative of t…

Assistant Commissioner of Income Tax, Circle - 4(1)(1), Bangalore vs. M/S. Karnataka State Financial Corporation Ltd., Bangalore

In the result, appeals filed by the Revenue are dismissed

ITA 888/BANG/2017[2012 - 13]Status: DisposedITAT Bangalore31 Jan 2018

Bench: Shri. Jason P. Boaz

For Appellant: Shri. A. C. Raju, CAFor Respondent: Shri. Harinder Kumar, CIT-DR-III
Section 14A

…ITA .888 & 889/Bang/2017 Page - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BENGALURU BENCH 'C', BENGALURU BEFORE SHRI. JASON P. BOAZ, ACCOUNTANT MEMBER AND SHRI. LALIET KUMAR, JUDICIAL MEMBER I.T.A Nos.888 & 889/Bang/2017 (Assessment Years : 2012-13 & 2013-14) Asst. Commissioner of Income-tax, Circle - 4(1)(1), Bengaluru .. Appellant v. M/s. Karnataka State Financial Corporation Ltd, KSFC Bhavan, No.1/1, Thimmaiah Road, Near Cantonment Railway Station, Bengaluru 560 052 .. Respondent PAN : AAACK9480H Assessee by : Shri. A. C. Raju, CA Revenue by : Shri. Harinder Kumar, CIT-DR-III Heard on : 13.12.2017 Pronoun…

Cambridge Solutions Limited, Bangalore vs. DCIT, Bangalore

In the result, the assessee’s appeal is allowed

ITA 1469/BANG/2010[2006-07]Status: DisposedITAT Bangalore06 Feb 2017AY 2006-07

Bench: Shri. Vijay Pal Rao & Shri. S. Jayaraman

For Appellant: Shri. Chavali Narayan, CAFor Respondent: Shri. G. R. Reddy, CIT, DR-I
Section 10Section 10ASection 144C(5)

…ase of CIT v. Secure Meters Ltd [(2008)[321 ITR 611] 2. Hon'ble SC decision in the case of Secure Meters Limited (reference CC 10548/2009) under order dated 11 August 2011 3. Hon'ble jurisdictional HC decision in the case of CIT vs. ITC -otels Limited (2011) [334 ITR 109] Other decisions relied upon: a. Hon'ble Madras HC in the case of South India Corporation (Agencies) Ltd v CIT (2006) [209 CTR 233] b. Hon'ble Calcutta HC decision in the case of CIT vs. East India Hotels Limited (2001) [252 ITR 860] c. Hon'ble Jaipur Tribunal decision in the case of Modem Syntex (India) Ltd vs. Dy CIT (2005) [95 TTJ 161] d. Hon…

Hindustan Motors Limited, Kolkata vs. D.C.I.T., Circle-6, Kolkata

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

ITA 2644/KOL/2013[1999-2000]Status: DisposedITAT Kolkata21 Sept 2016AY 1999-2000

Bench: Shri M.Balaganesh & Shri S.S.Viswanethra Ravi

Section 143(2)Section 147Section 350Section 35D

…wing cases have been cited on behalf of the assessee in support of the view that even in such a situation the expenditure is allowable as revenue expenditure: - (i) CIT v. East India Hotels Ltd., (2001) 252 ITR 860 (Cal.) (ii) CIT v. ITC Hotels Ltd., (2011) 334 ITR 109 (Kar.) (iii) CIT v. South India Corporation (Agencies) Ltd., (2007) 290 ITR 217 (Mad.) (iv) CIT v. First Leasing Co. of India Ltd., (2008) 304 ITR 67(Mad.) 27. In addition to the above judgments, we also have the judgment of the Rajasthan High Court (supra) against which the Special Leave Petition filed by the Revenue was dismissed. Having reg…

Mc Nally Bharat Engineering Company Limited, Kolkata vs. C.I.T Kol - 1, Kolkata

In the result the appeal of the assessee is allowed

ITA 840/KOL/2013[2008-2009]Status: DisposedITAT Kolkata15 Jul 2016AY 2008-2009

Bench: Hon’Ble Sri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am] I.T.A No. 840/Kol/2013 Assessment Year : 2008-09 Mc.Nally Bharat Engineering -Vs.- C.I.T., Circle-1, Company Limited, Kolkata Kolkata. [Pan : Aabcm 9443 R] (Respondent) (Appellant)

For Appellant: Shri Soumen Adak, FCA
Section 142(1)Section 263

…xpenditure has to be considered as revenue in nature, allowable as deductible expenditure in computing total income chargeable to tax. The said principles has been upheld by the Hon'ble Calcutta High Court in the case of CIT-vs.- East India Hotels Ltd. (2001) 252 ITR 860 (Cal) and by Hon'ble Mumbai Tribunal in the case of J.M.Shares & Stock Brokers Ltd-vs.-DCIT (2004) 83 TTJ 1052 (Mum). In the above decision, Hon'ble Mumbai Tribunal has specifically held that issue expenses on convertible portion of partly convertible debentures were allowable as revenue expenditure irrespective of the fact that the date of conve…

Prime Focus Ltd.., Mumbai vs. D.C.I.T. (Ods) C. RG. 7, Mumbai

In the result, appeal of the Revenue and the Cross Objection filed by the assessee are dismissed

ITA 8364/MUM/2011[2008-09]Status: DisposedITAT Mumbai04 Feb 2016AY 2008-09

Bench: Shri D. Karunakara Rao & Shri Amarjit Singhi.T.A. No.8364/M/2011 (Assessment Year: 2008-2009) C.O.233/M/2012 (Arising Out Of Ita No.8066/M/2011) (Ay 2008-09) Prime Focus Limited, फनाभ/ Dcit (Osd-1), 1S T Floor, Old Dubbing & Central Range, Aayakar Vs. Recording Studio Building, Bhavan, Marine Lines, Dadasaheb Phalke Chitra Mumbai – 400 020. Nagari,Filmcity Campus, Opposite Hotel Food Paradise, Filmcity, Goregaon (E), Mumbai – 400 065. स्थामी रेखा सं./ Pan : Aaacp6811B (अऩीराथी /Appellant) .. (प्रत्मथी / Respondent)

For Appellant: Shri R.R. VoraFor Respondent: Shri M. Dayasagar, DR
Section 14ASection 234D

…tex (supra):  Secure Meters Ltd (321 ITR 611) (Rajasthan High Court) – Supreme court has dismissed department‟s SLP vide appeal (Civil) 10548) of 2008 dated 11th August, 2009.  Sukhjit Starch & Chemicals Ltd (326 ITR 29) (P & H) High Court  ITC Hotels Ltd (334 ITR 109) (Karnataka High Court)  Mahindra and Mahindra Limited (36 SOT 348) (Mumbai Tribunal) Dolphin Offshore Enterprises (I) Ltd (ITA No. 4273/M/2011) dated 28th June, 2013  (Mumbai Tribunal) Faze Three Limited (ITA No.5449/M/2011) dated 16th August, 2013 (Mumbai  Tribunal)  Crane Software International Limited (ITA Nos. 741 & 741/Bang/2010 and ITA…

Larsen & Toubro Ltd, Mumbai vs. DCIT Cir 2(2), Mumbai

In the result, assessee’s appeal stands allowed

ITA 3255/MUM/2010[1990-91]Status: DisposedITAT Mumbai30 Oct 2015AY 1990-91

Bench: Shri Saktijit Dey & Shri Ashwani Taneja

For Appellant: Shri J.D. MistriFor Respondent: Shri Goli Srinivas Rao
Section 115JSection 143(3)Section 260ASection 271(1)(c)

…lied upon the following case laws:- i) CIT v/s Secure Meters Ltd., [2011] 321 ITR 611 (Raj.) ii) CIT v/s Sukhijit Starch & Chemicals Ltd., [2010] 326 ITR 29 (P&H); iii) CIT v/s Havells India Ltd., [2012] 352 ITR 376 (P&H); iv) CIT v/s ITC Hotels Ltd., [2010] 334 ITR 109 (Kar.); v) CIT v/s Ranbaxy Laboratories Ltd., [2013] ITA no.93 of 2000 (Del.) Thus, he submitted that in view of the fact that different High Courts have held the expenditure on issuance of convertible debenture as revenue in nature, the issue is highly contentious hence will not come within the purview of section 271(1)(c) as it is a debatable…

CIT Large Tax Payers Unit vs. Indian Railway Finance Corp Ltd

ITA-1189/2011HC Delhi31 Oct 2013
Section 115Section 145

…llowing cases have been cited on behalf of the assessee in support of the view that even in such a situation the expenditure is allowable as revenue expenditure:- (i) CIT V. East India Hotels Ltd., (2001) 252 ITR 860 (Cal.) (ii) CIT V. ITC Hotels Ltd., (2011) 334 ITR 109 (Kar.) (iii) CIT V. South India Corporation (Agencies) Ltd., (2007) 290 ITR 217 (Mad.) (iv) CIT V. First Leasing Co. of India Ltd., (2008) 304 ITR 67 (Mad.) 27. In addition to the above judgments, we also have the judgment of the Rajasthan High Court (supra) against which the Special Leave Petition filed by the Revenue was dismissed. Having regar…

CIT vs. Havells India Ltd

In the result the appeals filed by the revenue are disposed of with no

ITA/57/2012HC Delhi21 May 2012

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE R.V.EASWAR

Section 195Section 260ASection 40Section 9(1)(vii)

…ases have been cited on behalf of the assessee in support of the view that even in such a situation the expenditure is allowable as revenue expenditure: - (i) CIT v. East India Hotels Ltd., (2001) 252 ITR 860 (Cal.) (ii) CIT v. ITC Hotels Ltd., (2011) 334 ITR 109 (Kar.) (iii) CIT v. South India Corporation (Agencies) Ltd., (2007) 290 ITR 217 (Mad.) (iv) CIT v. First Leasing Co. of India Ltd., (2008) 304 ITR 67 (Mad.) 27. In addition to the above judgments, we also have the judgment of the Rajasthan High Court (supra) against which the Special Leave Petition filed by the Revenue was dismissed.…

Commissioner of Income Tax vs. Havells India Ltd

In the result the appeals filed by the revenue are disposed of with no

ITA/55/2012HC Delhi21 May 2012
Section 195Section 201Section 260ASection 40Section 9(1)(vii)

…ases have been cited on behalf of the assessee in support of the view that even in such a situation the expenditure is allowable as revenue expenditure: - (i) CIT v. East India Hotels Ltd., (2001) 252 ITR 860 (Cal.) (ii) CIT v. ITC Hotels Ltd., (2011) 334 ITR 109 (Kar.) (iii) CIT v. South India Corporation (Agencies) Ltd., (2007) 290 ITR 217 (Mad.) (iv) CIT v. First Leasing Co. of India Ltd., (2008) 304 ITR 67 (Mad.) 27. In addition to the above judgments, we also have the judgment of the Rajasthan High Court (supra) against which the Special Leave Petition filed by the Revenue was dismissed.…

CIT vs. Havells India Ltd

In the result the appeals filed by the revenue are disposed of with no

ITA - 55 / 2012HC Delhi21 Apr 2012
Section 195Section 201Section 260ASection 40Section 9(1)(vii)

…ases have been cited on behalf of the assessee in support of the view that even in such a situation the expenditure is allowable as revenue expenditure: - (i) CIT v. East India Hotels Ltd., (2001) 252 ITR 860 (Cal.) (ii) CIT v. ITC Hotels Ltd., (2011) 334 ITR 109 (Kar.) (iii) CIT v. South India Corporation (Agencies) Ltd., (2007) 290 ITR 217 (Mad.) (iv) CIT v. First Leasing Co. of India Ltd., (2008) 304 ITR 67 (Mad.) 27. In addition to the above judgments, we also have the judgment of the Rajasthan High Court (supra) against which the Special Leave Petition filed by the Revenue was dismissed.…