Jonas Wood Head and Sons. v. CIT

Heidelberg Cement India Ltd., Gurgaon vs. DCIT, Circle- 2, Gurgaon

In the result, appeal of the assessee is partly allowed

Bench: Shri M. Balaganesh & Shri Anubhav Sharmaheidelberg Cement India Ltd, Vs. Dcit, 9Th Floor, Tower-C, Infinity Circle-2, Towers, Dlf, Cybercity, Gurgaon Gurgaon (Appellant) (Respondent) Pan: Aabcm2359J

…id in the shape of 1 % of net sales for the use of trade mark and right to use knowhow could not be considered to be of enduring nature and thus capital expenditure. The expenditure was to be of revenue nature. In the case of Jonas Wood Head and Sons Vs. CIT, 117 ITR 55, it was held that the question regarding capital or revenue expenditure depends on the terms of agreement in each case. In the case of CIT Vs. Gujarat Carbon Ltd., 254 ITR 294, it was held that the payment of revenue under the agreement was directly relatable to services which were in the revenue field and were allowable as revenue expenditure. In…

Heidelberg Cement India Ltd., Gurgaon vs. DCIT, Circle- 2, Gurgaon

In the result, both the appeals filed by the assessee are partly allowed

Bench: Shri R.K. Panda & Ms Suchitra Kamble

…id in the shape of 1 % of net sales for the use of trade mark and right to use knowhow could not be considered to be of enduring nature and thus capital expenditure. The expenditure was to be of revenue nature. In the case of Jonas Wood Head and Sons Vs. CIT, 117 ITR 55, it was held that the question regarding capital or revenue expenditure depends on the terms of agreement in each case. In the case of CIT Vs. Gujarat Carbon Ltd., 254 ITR 294, it was held that the payment of revenue under the agreement was directly relatable to services which were in the revenue field and were allowable as revenue expenditure. In…

Heidelberg Cement India Ltd., Gurgaon vs. DCIT, Gurgaon

The appeal of the assessee stands partly allowed

…id in the shape of 1 % of net sales for the use of trade mark and right to use knowhow could not be considered to be of enduring nature and thus capital expenditure. The expenditure was to be of revenue nature. In the case of Jonas Wood Head and Sons Vs. CIT, 117 ITR 55, it was held that the question regarding capital or revenue expenditure depends on the terms of agreement in each case. In the case of CIT Vs. Gujarat Carbon Ltd., 254 ITR 294, it was held that the payment of revenue under the agreement was directly relatable to services which were in Heidelberg Cement India Limited Vs. DCIT the revenue field and…

Heidelberg Cement India Ltd., Gurgaon vs. DCIT, Gurgaon

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

Bench: Shri R.K. Panda & Ms Suchitra Kambleassessment Year: 2011-12 Heidelberg Cement India Ltd., Vs Dcit, 9Th Floor, Tower-C, Circle-2, 3Rd Floor, Infinity Towers, Dlf Cyber City, Vanijya Nikunj, Gurgaon. Hsiidc Building, Udyog Vihar, Ph. V, Pan: Aabcm2359J Near Shankar Chowk, Nh-8, Gurgaon. (Appellant) (Respondent) Assessee By : Shri Deepak Chopra, Advocate & Sh. Harpreet Singh Ajmani, Advocate Revenue By : Ms Ashima Neb, Sr. Dr Date Of Hearing : 28.08.2019 Date Of Pronouncement : 31.10.2019 Order Per R.K. Panda, Am: This Appeal Filed By The Assessee Is Directed Against The Order Dated 1St February, 2016 Of The Cit(A)-1, Gurgaon, Relating To Assessment Year 2011-12. 2. Grounds Of Appeal No. 1 & 1.1 Raised By The Read As Under:- “1. The Ld. Cit(A) Has Erred On Facts & In Law, In Confirming The Disallowance Made By The Ld. Ao, Amounting To Inr 87,12,690/-, On Account Of Additional Depreciation Claimed By The Appellant On New Plant & Machinery In Accordance With The Provisions Of Section 32(I)(Iia) Of The Act. 1.1 The Ld. Cit(A) / Ld. Ao Erred On Facts & In Law, In Considering Only The Nomenclature Of The Assets To Hold The Disallowance, Without Appreciating The Detailed Nature & Use Of The Assets.”

…id in the shape of 1 % of net sales for the use of trade mark and right to use knowhow could not be considered to be of enduring nature and thus capital expenditure. The expenditure was to be of revenue nature. In the case of Jonas Wood Head and Sons Vs. CIT, 117 ITR 55, it was held that the question regarding capital or revenue expenditure depends on the terms of agreement in each case. In the case of CIT Vs. Gujarat Carbon Ltd., 254 ITR 294, it was held that the payment of revenue under the agreement was directly relatable to services which were in the revenue field and were allowable as revenue expenditure. In…

ACIT, New Delhi vs. M/S G4S Facility Services (India) Pvt. Ltd., Gurgaon

Bench: Smt. Diva Singh & Shri Inturi Rama Rao

…id in the shape of 1 % of net sales for the use of trade mark and right to use knowhow could not be considered to be of enduring nature and thus capital expenditure. The expenditure was to be of revenue nature. In the case of Jonas Wood Head and Sons Vs. CIT, 117 ITR 55, it was 6 held that the question regarding capital or revenue expenditure depends on the terms of agreement in each case. In the case of CIT Vs. Gujarat Carbon Ltd., 254 ITR 294, it was held that the payment of revenue under the agreement was directly relatable to services which were in the revenue field and were allowable as revenue expenditure.…

CIT vs. Ekl Appliances Ltd

…hape of 1 % of net sales for the use of trade mark and right to use knowhow could not be considered to be of enduring nature and thus capital expenditure. The expenditure was to be of revenue nature. In the case of Jonas Wood Head and Sons Vs. CIT, 117 ITR 55, it was held that the question regarding capital or revenue expenditure depends on the terms of agreement in each case. In the case of CIT Vs. Gujarat Carbon Ltd., 254 ITR 294, it was held that the payment of revenue under the agreement was directly relatable to services which were in the revenue field and were allowable as revenue expendi…

ITA 1069/2011 vs. Ekl Appliances Ltd

…hape of 1 % of net sales for the use of trade mark and right to use knowhow could not be considered to be of enduring nature and thus capital expenditure. The expenditure was to be of revenue nature. In the case of Jonas Wood Head and Sons Vs. CIT, 117 ITR 55, it was held that the question regarding capital or revenue expenditure depends on the terms of agreement in each case. In the case of CIT Vs. Gujarat Carbon Ltd., 254 ITR 294, it was held that the payment of revenue under the agreement was directly relatable to services which were in the revenue field and were allowable as revenue expendi…

Commissioner of Income Tax vs. G4S Securities System India Pvt Ltd

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE M.L. MEHTA

…the shape of 1 % of net sales for the use of trade mark and right to use knowhow could not be considered to be of enduring nature and thus capital expenditure. The expenditure was to be of revenue nature. In the case of Jonas Wood Head and Sons Vs. CIT, 117 ITR 55, it was held that the question regarding capital or revenue expenditure depends on the terms of agreement in each case. In the case of CIT Vs. Gujarat Carbon Ltd., 254 ITR 294, it was held that the payment of revenue under the agreement was directly relatable to services which ITAs No.1943/2010, 763/2011 & 765/2011 Page 7 of 8…

Commissioner of Income Tax vs. G4S Securities System India Pvt Ltd

…the shape of L o/o of net sales for the use of trade mark and right to use knowhow could not be considered to be of enduring nature and tlrus capital expencliture. The expenditLrre was to be of revenue nature. In the case of lonas Wood Head and Sons Vs, CIT, 117 ITR 55, it was held that the question regarding capital or revenue expenditure depends on the terms of agreement in each case, ln the case of CIT Vs, Gujarat Carbon Ltd,, 254 ITR 2g4, it was helci that the payment of revenLie under the agreement was directly relatable to services which ITAs I{o.7943/2070, 763/2077 & 765/207'l { -3 Page 6 oJ 8 2011:DHC:14…

Commissioner of Income Tax vs. G4S Securities System India Pvt Ltd

…the shape of 1 % of net sales for the use of trade mark and right to use knowhow could not be considered to be of enduring nature and thus capital expenditure. The expenditure was to be of revenue nature. In the case of Jonas Wood Head and Sons Vs. CIT, 117 ITR 55, it was held that the question regarding capital or revenue expenditure depends on the terms of agreement in each case. In the case of CIT Vs. Gujarat Carbon Ltd., 254 ITR 294, it was held that the payment of revenue under the agreement was directly relatable to services which 2011:DHC:3407-DB ITAs No.1943/2010, 763/2011 & 765/2011…

Commissioner of Income Tax-IV vs. M/s DCM Technologies Limited

…capital expenditure and, therefore, not allowable as revenue expenditure under the provisions of the Income Tax Act, 1961. It is worth noting that the High Court of Madras in Jonas Woodhead & Sons (India) Ltd. v. Commissioner of Income-Tax, Madras (1979) 117 ITR 55 (FB) answered the said question in favour of the revenue. The Apex Court referred to the decision in Alembic Chemical Works Co. Ltd.(supra) wherein it has been held that in the infinite variety of situational diversities in which 2010:DHC:3482-DB the concept of what is capital expenditure and what is revenue arises, it is not possible to f…