Jabbar (M.A.) v. CJT, Andra Pradesh

68 ITR 493Supreme Court of India1968#8522 most cited

What is Jabbar (M.A.) v. CJT, Andra Pradesh authority for?

Expenditure is revenue in character if the object for which a lease is taken and the nature of payment are for acquiring a short-term asset for disposal, rather than for acquiring an asset of enduring benefit.

13

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2013 to 2017.

Also referred to as

Jabbar (M.A.) v. CJT · 68 ITR 493 · revenue expenditure · capital expenditure · enduring benefit · short term lease · quarrying purposes · nature of payment · object of lease · section 35ab

Issues it is cited on

section 35abtest of enduring benefitsection 35abbsection 35aresulting companypptdemergerjdaenduring benefitput to usesection 35amalgamation

Judgments citing Jabbar (M.A.) v. CJT, Andra Pradesh

Knight Riders Sports P. Ltd, Mumbai vs. Asst CIT Cen Cir 29, Mumbai

The appeal of the assessee is partly allowed in terms of our aforesaid observations

ITA 1307/MUM/2013[2009-10]Status: DisposedITAT Mumbai29 Dec 2017AY 2009-10

Bench: Shri G.S.Pannu, Am & Shri Ravish Sood, Jm M/S Knight Riders Sports Acit, Central Circle-29, Private Limited, Deepvan बिधम/ Mumbai. Anand Vihar Society, 20Th Vs. Road, Khar (W), Mumbai-400 052 स्थामी रेखा सं./ जीआइआय सं./ Pan No. Aadck3118M (अऩीराथी /Appellant) (प्रत्मथी / Respondent) :

For Appellant: Mr. J.D. Mistry, A.RFor Respondent: Mr. Rajesh Yadav, D.R
Section 143(3)Section 250Section 32(1)(ii)Section 37(1)

…eral decisions in which it has been held that payments made for securing the right to supply of raw materials for several years would be on revenue account - Supreme Court decision in case of in Gotan Lime Syndicate Vs. CIT 59 ITR 718 and M. A. Jabbar Vs. CIT 68 ITR 493, and of the Andhra Pradesh High Court in G. Venkata Bhooma Reddy Vs. CIT 43 ITR 100. The courts have held that there is a distinction between payments made for acquiring a capital asset and therefore capital expenditure and payment for securing raw material and therefore revenue expenditure. Enduring benefit: As highlighted above in Para 5.3, KRSP…

DCIT. Cir-10, Kolkata vs. M/S Magnum Clothing (P) Ltd., Kolkata

In the result, Revenue’s appeal stands dismissed

ITA 61/KOL/2014[2008-2009]Status: DisposedITAT Kolkata26 Oct 2017AY 2008-2009

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Raviassessment Year:2008-09

Section 133(6)Section 143(3)

…tive parties were either not delivered or no response was received. However, Ld. CIT(A) granted relief to assessee after having reliance on the judgment of Hon'ble jurisdictional High Court in the case of Mather & Platt (India) Ltd. Vs. CIT (1987) reported in 68 ITR 493 (Cal) and relevant extract of the said judgment is reproduced below:- “On the consideration of the facts and circumstances, it appears that by taking an overall view, it is found that the assessee had been entering into transactions in its regular course of business through commission agents and paying the agents' commission on the basis of the tr…

Commissioner of Income Tax vs. Shri Krishan Kumar

The appeals stand dismissed

ITA - 50 / 2000HC Delhi02 Dec 2014

…expenditure on acquiring floating capital is not made with a view to acquiring an enduring asset. It is made with a view to acquiring an asset that may be turned over in the course of a trade at a comparatively early date”. In M.A.Jabbar Vs. CIT, [1968] 68 ITR 493 (SC), wherein the assessee had taken a short term lease of eleven months for quarrying purposes to carry away, sell and dispose of sand which was lying on the surface of river bed without excavation or skilful extraction. The said expenditure was held to be revenue in character, even though, the interest of land was also conveyed. The decisiv…

Commissioner of Income Tax vs. Shri Krishan Kumar

The appeals stand dismissed

ITA/50/2000HC Delhi02 Dec 2014

…expenditure on acquiring floating capital is not made with a view to acquiring an enduring asset. It is made with a view to acquiring an asset that may be turned over in the course of a trade at a comparatively early date”. In M.A.Jabbar Vs. CIT, [1968] 68 ITR 493 (SC), wherein the assessee had taken a short term lease of eleven months for quarrying purposes to carry away, sell and dispose of sand which was lying on the surface of river bed without excavation or skilful extraction. The said expenditure was held to be revenue in character, even though, the interest of land was also conveyed. The decisiv…

Commissioner of Income Tax vs. Bharti Hexacom Ltd

ITA/1328/2010HC Delhi19 Dec 2013

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE SANJEEV SACHDEVA

…on extraction became stock in trade. The payment though periodical was neither rent nor royalty, but payment was for acquiring an asset for enduring benefit i.e. right to extract stones and not stones itself. 21. In Jabbar (M.A.) vs. CJT, Andra Pradesh [1968] 68 ITR 493 (SC), the assessee had taken a short term lease of 11 months for quarrying purposes to carry away, sell and dispose oi: sand which was lying on the surface of river bed without excavation or skillful extraction. The said expenditure was held to be of revenue charactcr, in spite of fact that the interest on land Avas also conveyed, observing that t…

CIT vs. Bharti Hexacom Limited

ITA/996/2011HC Delhi19 Dec 2013

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE SANJEEV SACHDEVA

…on extraction became stock in trade. The payment though periodical was neither rent nor royalty, but payment was for acquiring an asset for enduring benefit i.e. right to extract stones and not stones itself. 21. In Jabbar (M.A.) vs. CJT, Andra Pradesh [1968] 68 ITR 493 (SC), the assessee had taken a short term lease of 11 months for quarrying purposes to carry away, sell and dispose oi: sand which was lying on the surface of river bed without excavation or skillful extraction. The said expenditure was held to be of revenue charactcr, in spite of fact that the interest on land Avas also conveyed, observing that t…

Commissioner of Income Tax vs. Bharti Telenet Ltd

ITA/1333/2010HC Delhi19 Dec 2013

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE SANJEEV SACHDEVA

…on extraction became stock in trade. The payment though periodical was neither rent nor royalty, but payment was for acquiring an asset for enduring benefit i.e. right to extract stones and not stones itself. 21. In Jabbar (M.A.) vs. CJT, Andra Pradesh [1968] 68 ITR 493 (SC), the assessee had taken a short term lease of 11 months for quarrying purposes to carry away, sell and dispose oi: sand which was lying on the surface of river bed without excavation or skillful extraction. The said expenditure was held to be of revenue charactcr, in spite of fact that the interest on land Avas also conveyed, observing that t…

CIT vs. Bhartihexacom Ltd

ITA/114/2012HC Delhi19 Dec 2013

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE SANJEEV SACHDEVA

…on extraction became stock in trade. The payment though periodical was neither rent nor royalty, but payment was for acquiring an asset for enduring benefit i.e. right to extract stones and not stones itself. 21. In Jabbar (M.A.) vs. CJT, Andra Pradesh [1968] 68 ITR 493 (SC), the assessee had taken a short term lease of 11 months for quarrying purposes to carry away, sell and dispose oi: sand which was lying on the surface of river bed without excavation or skillful extraction. The said expenditure was held to be of revenue charactcr, in spite of fact that the interest on land Avas also conveyed, observing that t…

CIT vs. Bharti Airtel Ltd

ITA/177/2012HC Delhi19 Dec 2013

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE SANJEEV SACHDEVA

…on extraction became stock in trade. The payment though periodical was neither rent nor royalty, but payment was for acquiring an asset for enduring benefit i.e. right to extract stones and not stones itself. 21. In Jabbar (M.A.) vs. CJT, Andra Pradesh [1968] 68 ITR 493 (SC), the assessee had taken a short term lease of 11 months for quarrying purposes to carry away, sell and dispose oi: sand which was lying on the surface of river bed without excavation or skillful extraction. The said expenditure was held to be of revenue charactcr, in spite of fact that the interest on land Avas also conveyed, observing that t…

Commissioner of Income Tax vs. Bharti Hexacom Ltd

ITA - 1328 / 2010HC Delhi19 Dec 2013

…on extraction became stock in trade. The payment though periodical was neither rent nor royalty, but payment was for acquiring an asset for enduring benefit i.e. right to extract stones and not stones itself. 21. In Jabbar (M.A.) vs. CJT, Andra Pradesh [1968] 68 ITR 493 (SC), the assessee had taken a short term lease of 11 months for quarrying purposes to carry away, sell and dispose oi: sand which was lying on the surface of river bed without excavation or skillful extraction. The said expenditure was held to be of revenue charactcr, in spite of fact that the interest on land Avas also conveyed, observing that t…

CIT vs. Bharti Cellular Ltd

ITA - 1679 / 2010HC Delhi19 Dec 2013

…on extraction became stock in trade. The payment though periodical was neither rent nor royalty, but payment was for acquiring an asset for enduring benefit i.e. right to extract stones and not stones itself. 21. In Jabbar (M.A.) vs. CJT, Andra Pradesh [1968] 68 ITR 493 (SC), the assessee had taken a short term lease of 11 months for quarrying purposes to carry away, sell and dispose oi: sand which was lying on the surface of river bed without excavation or skillful extraction. The said expenditure was held to be of revenue charactcr, in spite of fact that the interest on land Avas also conveyed, observing that t…

Commissioner of Income Tax vs. Bharti Hexacom Ltd

ITA - 1336 / 2010HC Delhi19 Dec 2013

…ion became stock in trade. The payment though periodical was neither rent nor royalty, but payment was for acquiring an asset for enduring benefit i.e. right to extract stones and not stones itself. 21. In Jabbar (M.A.) vs. CIT, Andra Pradesh [1968] 68 ITR 493 (SC), the assessee had taken a short term lease of 11 months for quarrying purposes to carry away, sell and dispose of sand which was lying on the surface of river bed without excavation or skillful extraction. The said expenditure was held to be of revenue character, in spite of fact that the interest on land was also conveyed, observing t…

CIT vs. Bharti Cellular Ltd

ITA - 1680 / 2010HC Delhi19 Dec 2013

…on extraction became stock in trade. The payment though periodical was neither rent nor royalty, but payment was for acquiring an asset for enduring benefit i.e. right to extract stones and not stones itself. 21. In Jabbar (M.A.) vs. CJT, Andra Pradesh [1968] 68 ITR 493 (SC), the assessee had taken a short term lease of 11 months for quarrying purposes to carry away, sell and dispose oi: sand which was lying on the surface of river bed without excavation or skillful extraction. The said expenditure was held to be of revenue charactcr, in spite of fact that the interest on land Avas also conveyed, observing that t…

Jabbar (M.A.) v. CJT, Andra Pradesh (68 ITR 493) — Cited in 13 Judgments | BharatTax