Kesoram Industries & Cotton Mills Ltd. v. CIT

196 ITR 845High Court1992#1884 most cited

What is Kesoram Industries & Cotton Mills Ltd. v. CIT authority for?

Expenditure incurred for exploring the feasibility of expanding or extending an existing business by setting up a new unit in the same line of business is revenue expenditure, not capital expenditure. Such expenditure, including obtaining project reports or legal opinions on desirability or feasibility, does not constitute the setting up of a new business.

61

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2005 to 2026.

Also referred to as

Kesoram Industries & Cotton Mills Ltd. v. CIT · revenue expenditure · capital expenditure · expansion of business · extension of business · exploring feasibility · project report · legal opinion · preliminary expenses · section 35D

Sections most often in play

Section 10B Section 10C Section 115JB Section 14A Section 250 Section 40A(2)(a)Section 92C Section 8D(2)(ii)

Issues it is cited on

section 8d(2)(ii)section 8d section 92f(ii)section 92a preliminary expenses section 40a(2)(a)section 14a(1)legal expenses section 92f section 35d strategic investment section 36(2)

Judgments citing Kesoram Industries & Cotton Mills Ltd. v. CIT

Asstt.Commissioner of Income Tax, Ludhiana vs. M/S Mrs.Bectors Food Specilties Ltd, Ludhiana

ITA 558/CHANDI/2017[2012-13]Status: DisposedITAT Chandigarh21 May 2018AY 2012-13

Bench: Smt. Diva Singh & Dr. B.R.R. Kumar

For Appellant: Sh. Subhash AggarwalFor Respondent: Smt. Chandrakanta

Section 14ASection 36Section 80I

…IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH’A’, CHANDIGARH BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ITA Nos.555,405,556,557,558 & 559/Chd/2017 Assessment Years: 2007-08 to 2008-09 & 2010-11 to 2013-14 Asst. CIT, Vs. M/s Mrs. Bectors Food Specialities Ltd. Circle-3, BXXXIII/324, G.T. Road(west), Ludhiana Ludhiana PAN No. AABCM9495K C.O. No.26,27,28,29,30 & 31/Chd/2017 (In ITA Nos.555,405,556,557,558 & 559/Chd/2017) Assessment Years: 2007-08 to 2008-09 & 2010-11 to 2013-14 M/s Mrs. Bectors Food Specialities Ltd. Vs. Asst. CIT BXXXIII/324, G.T. Road(west), Circle-…

Asstt.Commissioner of Income Tax, Ludhiana vs. M/S Mrs.Bectors Food Specilties Ltd, Ludhiana

ITA 557/CHANDI/2017[2011-12]Status: DisposedITAT Chandigarh21 May 2018AY 2011-12

Bench: Smt. Diva Singh & Dr. B.R.R. Kumar

For Appellant: Sh. Subhash AggarwalFor Respondent: Smt. Chandrakanta

Section 14ASection 36Section 80I

…IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH’A’, CHANDIGARH BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ITA Nos.555,405,556,557,558 & 559/Chd/2017 Assessment Years: 2007-08 to 2008-09 & 2010-11 to 2013-14 Asst. CIT, Vs. M/s Mrs. Bectors Food Specialities Ltd. Circle-3, BXXXIII/324, G.T. Road(west), Ludhiana Ludhiana PAN No. AABCM9495K C.O. No.26,27,28,29,30 & 31/Chd/2017 (In ITA Nos.555,405,556,557,558 & 559/Chd/2017) Assessment Years: 2007-08 to 2008-09 & 2010-11 to 2013-14 M/s Mrs. Bectors Food Specialities Ltd. Vs. Asst. CIT BXXXIII/324, G.T. Road(west), Circle-…

Asstt.Commissioner of Income Tax, Ludhiana vs. M/S Mrs.Bectors Food Specilties Ltd, Ludhiana

ITA 556/CHANDI/2017[2010-11]Status: DisposedITAT Chandigarh21 May 2018AY 2010-11

Bench: Smt. Diva Singh & Dr. B.R.R. Kumar

For Appellant: Sh. Subhash AggarwalFor Respondent: Smt. Chandrakanta

Section 14ASection 36Section 80I

…IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH’A’, CHANDIGARH BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ITA Nos.555,405,556,557,558 & 559/Chd/2017 Assessment Years: 2007-08 to 2008-09 & 2010-11 to 2013-14 Asst. CIT, Vs. M/s Mrs. Bectors Food Specialities Ltd. Circle-3, BXXXIII/324, G.T. Road(west), Ludhiana Ludhiana PAN No. AABCM9495K C.O. No.26,27,28,29,30 & 31/Chd/2017 (In ITA Nos.555,405,556,557,558 & 559/Chd/2017) Assessment Years: 2007-08 to 2008-09 & 2010-11 to 2013-14 M/s Mrs. Bectors Food Specialities Ltd. Vs. Asst. CIT BXXXIII/324, G.T. Road(west), Circle-…

Asstt.Commissioner of Income Tax, Ludhiana vs. M/S Mrs.Bectors Food Specilties Ltd, Ludhiana

ITA 555/CHANDI/2017[2007-08]Status: DisposedITAT Chandigarh21 May 2018AY 2007-08

Bench: Smt. Diva Singh & Dr. B.R.R. Kumar

For Appellant: Sh. Subhash AggarwalFor Respondent: Smt. Chandrakanta

Section 14ASection 36Section 80I

…IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH’A’, CHANDIGARH BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ITA Nos.555,405,556,557,558 & 559/Chd/2017 Assessment Years: 2007-08 to 2008-09 & 2010-11 to 2013-14 Asst. CIT, Vs. M/s Mrs. Bectors Food Specialities Ltd. Circle-3, BXXXIII/324, G.T. Road(west), Ludhiana Ludhiana PAN No. AABCM9495K C.O. No.26,27,28,29,30 & 31/Chd/2017 (In ITA Nos.555,405,556,557,558 & 559/Chd/2017) Assessment Years: 2007-08 to 2008-09 & 2010-11 to 2013-14 M/s Mrs. Bectors Food Specialities Ltd. Vs. Asst. CIT BXXXIII/324, G.T. Road(west), Circle-…

ACIT, Ludhiana vs. M/S Mrs. Bectors Food Specialties Pvt. Ltd., Ludhiana

ITA 405/CHANDI/2017[2008-09]Status: DisposedITAT Chandigarh21 May 2018AY 2008-09

Bench: Smt. Diva Singh & Dr. B.R.R. Kumar

For Appellant: Sh. Subhash AggarwalFor Respondent: Smt. Chandrakanta

Section 14ASection 36Section 80I

…IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH’A’, CHANDIGARH BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ITA Nos.555,405,556,557,558 & 559/Chd/2017 Assessment Years: 2007-08 to 2008-09 & 2010-11 to 2013-14 Asst. CIT, Vs. M/s Mrs. Bectors Food Specialities Ltd. Circle-3, BXXXIII/324, G.T. Road(west), Ludhiana Ludhiana PAN No. AABCM9495K C.O. No.26,27,28,29,30 & 31/Chd/2017 (In ITA Nos.555,405,556,557,558 & 559/Chd/2017) Assessment Years: 2007-08 to 2008-09 & 2010-11 to 2013-14 M/s Mrs. Bectors Food Specialities Ltd. Vs. Asst. CIT BXXXIII/324, G.T. Road(west), Circle-…

Jashojit Mukherjee, Kolkata vs. ACIT, Cir-50, Kolkata

In the result, the appeal of the assessee is allowed

ITA 403/KOL/2017[2012-13]Status: DisposedITAT Kolkata04 May 2018AY 2012-13

Bench: Hon’Ble Shri S.S. Godara, Jm & Shri M.Balaganesh, Am ] I.T.A No. 403/Kol/2017 Assessment Year : 2012-13 Jashojit Mukherjee -Vs- Acit, Circle-50, Kolkata [Pan: Afapm 7208 R] (Appellant) (Respondent)

For Appellant: Shri P.K. Himmatsinghka, ARFor Respondent: Shri Sallong Yaden, Addl. CIT

Section 133(6)Section 139(4)Section 143(2)Section 143(3)Section 41(1)

…e, the present appeal is dismissed. (Bold letters provided by us) 15 Jashojit Mukherjee A.Yr. 2012-13 5.1. Moreover, we find that in the decision of the Hon’ble Jurisdictional High Court in the case of Kesoram Industries & Cotton Mills Ltd vs CIT reported in 196 ITR 845 (Cal) which was heavily relied upon by the ld DR, the facts in that case were that the assessee had written back the unclaimed wages to its profit and loss account by an unilateral act on its part, which the Hon’ble Court held that the very unilateral act of writing back tantamounts to cessation of liability and accordingly the provisions of sect…

ACIT, Circle-31, Kolkata vs. M/S Agro Life Science Corporation, Kolkata

In the result, Revenue’s appeal stands dismissed

ITA 1863/KOL/2016[2013-14]Status: DisposedITAT Kolkata04 Apr 2018AY 2013-14

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmedassessment Year :2013-14 Acit, Circle-31, V/S. M/S Agro Life Science 10B, Middleton Row, Corporation, Fmc Fortuna 4Th Floor, Kolkata-71 Building, 234/3A, A.J.C. Bose Road, Kolkata-20 [Pan No.Aakfa 5781 A] .. अपीलाथ" /Appellant ""यथ"/Respondent Shri Arindam Bhattacharjee, Addl. Cit-Dr अपीलाथ" क" ओर से/By Appellant Shri Sanjeev Kadel, Fca ""यथ" क" ओर से/By Respondent 08-02-2018 सुनवाई क" तार"ख/Date Of Hearing 04-04-2018 घोषणा क" तार"ख/Date Of Pronouncement आदेश /O R D E R Per Waseem Ahmed:- This Appeal By The Revenue Is Directed Against The Order Of Commissioner Of Income Tax (Appeals)-9, Kolkata Dated 21.06.2016. Assessment Was Framed By Acit, Circle-31, Kolkata U/S 143(3) Of The Income Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) Vide His Order Dated 28.02.2016 For Assessment Year 2013-14. The Grounds Of Appeal Raised By The Revenue Reads As Follows:- “1.”That On The Facts & In The Circumstances Of The Case & In Law, The Ld. Cit(Appeals) Has Erred In Allowing The Amount Of Rs.2,34,84,055/- & Rs.82,192/- On Account Of Excise Duty Refund & Interest Subsidy Respectively As Capital Receipt.” 2. That The Ld. Cit(Appeals)Has Not Taken Into Account The Verdict In The Following Cases: A) Sehanay Steel Pres Works Ltd. & Ors Vs. Cit (1997) 228 Itr 253 B) Kesoram Industries & Cotton Ltd. Vs. Cit (1991) 191 Itr 518

…interest subsidy respectively as capital receipt.” 2. That the Ld. CIT(Appeals)has not taken into account the verdict in the following cases: a) Sehanay Steel Pres Works Ltd. & Ors vs. CIT (1997) 228 ITR 253 b) Kesoram Industries & Cotton Ltd. vs. CIT (1991) 191 ITR 518 1863/Kol/2016 A.Y. 2013-14 ACIT Cir-31,Kol. Vs. M/s Agro Life Science Corpn. Page 2 3. “Any other ground, appellant craves leave to submit on or before the hearing of appeal.” Shri Arindam Bhattarchejee, Ld. Departmental Representative appeared on behalf of Revenue and Shri Sanjev Kedel, Ld. Authorized Representative appeared on behalf of assess…

Maruti Suzuki India Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, the appeal of the assessee is allowed in part for statistical purposes

ITA 6021/DEL/2012[2008-09]Status: DisposedITAT Delhi09 Nov 2017AY 2008-09

Bench: Shri N.K. Saini & Shri K.N. Charry

Section 143(3)Section 144CSection 144C(5)Section 14ASection 35DSection 43BSection 92C

…of Indian Courts on this aspect, viz., V.S.S.V. Meenakshi Achi & Anr. vs. CIT (1966) 60 ITR 253 (SC), CIT vs. Ruby Rubber Works Ltd. (1989) 78 CTR (Ker) 75, Sadichha Chitra vs. CIT (1990) 90 CTR (Bom) 135, Kesoram Industries & Cotton Mills Ltd. vs. CIT (1991) 191 ITR 518 (Cal), CIT vs. Dusad Industries (1986) 51 CTR (MP) 217 etc. 11.18. In this context, it is pertinent to note that the Madhya Pradesh High Court in the case of CIT vs. Dusad Industries (1986) 51 CTR (MP) 217 : (1986) 162 ITR 784 (MP) : TC 13R.622, dealt with a case where Government had framed a scheme for granting sales-tax subsidies to industries…

Senco Gold Ltd., Kolkata vs. DCIT, Circle - 11, Kolkata

In the result, the appeal of the assessee is allowed

ITA 1862/KOL/2014[2008-2009]Status: DisposedITAT Kolkata03 Nov 2017AY 2008-2009

Bench: The Cit-A The Assessee Contended That The Said Liability Was Never Allowed As Deduction In Earlier Years. The Assessee Has Also Not Claimed Any Benefit By Way Of Remission Or Cessation Of The 1 Said Liability & Challenged The Said Addition Made By The Ao U/S. 41(1) Of The Act & Prayed To Delete The Same. But, However, The Cit-A Did Not Accept The Submissions Made By The Ao & Confirmed The Addition Made By The Ao. Relevant Portion Of Cit-A Order Is Reproduced Herein Below:-

For Appellant: Shri Sharad Mohta, FCA, ld.ARFor Respondent: Shri Satyajit Mondal, Addl.CIT, ld.Sr.DR

…IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH: KOLKATA Before: Shri P.M. Jagtap, Accountant Member and Shri S.S. Viswanethra Ravi, Judicial Member I.T.A No. 1862/Kol/2014 A.Y: 2008-09 Senco Gold Ltd Vs. Addl. CIT, Range-11, Kolkata PAN: AADCS6985J [Appellant] [Respondent] For the Appellant : Shri Sharad Mohta, FCA, ld.AR For the Respondent : Shri Satyajit Mondal, Addl.CIT, ld.Sr.DR Date of hearing : 30-08-2017 Date of pronouncement : 03-11-2017 ORDER Shri S.S.Viswanethra Ravi, JM: This appeal by the Assessee is directed against the order of the Commissioner of Income Tax (Appeals), XII, Kolkata dt.…

Hero Motocorp Limited, New Delhi vs. JCIT, New Delhi

In the result appeal of the assessee in ITA No

ITA 1545/DEL/2015[2010-11]Status: DisposedITAT Delhi24 Oct 2016AY 2010-11

Bench: Sh. I. C. Sudhir & Shri Prashant Maharishihero Motocorp Limited, Jcit, 34, Basant Lok, Vasant Range-1, New Delhi Vs. Vihar, New Delhi Pan: Aaach0812J (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community Vs. New Delhi Centre, Basant Lok, Vasant Vihar, New Delhi-110057 (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. NC Sawain, CIT DR

Section 143Section 143(3)Section 144CSection 92C

…11) ITA No. 1609/Del/2016 and 914/Del/2016 (AY 2011-12) Page 426 of 484 (v) CIT v. Tata Chemicals Ltd: 256 ITR 395 (Bom.) (vi) Addl. CIT v. Aniline Dye Stuffs & Pharmaceuticals Pvt. Ltd.: 138 ITR 843(Bom) (vii) Kesoram Industries and Cotton Mills Ltd vs CIT: 196 ITR 845 (Cal .) (viii) Hindustan Aluminim Corporation Ltd. v. CIT: 159 ITR 673 (Cal.) (ix) CIT v. Rane (Madras) Ltd.: 215 CTR 250 (Chenn.) (x) Prem Spinning and Weaving Mills Co. Ltd. v. CIT : 98 ITR 20 (All.) (xi) CIT v. Shah Theatres P. Ltd. : 169 ITR 499 (Raj.) (xii) CIT v. MalwaVanaspati& Chemicals Co. Ltd., 149 CTR 283 (MP) (xiii) CIT v. Kerala Stat…

ACIT, CC- Xxvii, Kolkata vs. M/S. Budge Budge Refineries Ltd., Kolkata

In the result, the appeals of the revenue are dismissed

ITA 577/KOL/2011[2008-09]Status: DisposedITAT Kolkata14 Oct 2016AY 2008-09

Bench: Shri N. V. Vasudevan, Jm & Shri M. Balaganesh, Am]

For Appellant: Shri G. Mallikarjuna, CIT, DRFor Respondent: Shri A. K. Tibrewal, FCA

Section 143(3)Section 41(1)

…ter charges to be treated as an aid to setting up of the industry’ of the assessee…………. . The subsidies are operational subsidies and not capital subsidies”. The above facts of the case are similar to the case of Kesoram Industries & Cotton Mills Ltd. (1991) 191 ITR 518 (Cal) wherein the subsidy received by way of refund of Sales Tax levied on raw materials, machinery, finished goods etc. Thus these two judicial decisions are Budge Budge Refineries Ltd., AYs 2007-08 & 2008-09 mainly based on two factors : First, subsidy for carrying on business (conditional), secondly the incentive by way of refund of Sales Tax…

DCIT, C.C.Xxvii, Kolkata vs. M/S. Budge Budge Refineries Ltd., Kolkata

In the result, the appeals of the revenue are dismissed

ITA 1552/KOL/2010[2007-08]Status: DisposedITAT Kolkata14 Oct 2016AY 2007-08

Bench: Shri N. V. Vasudevan, Jm & Shri M. Balaganesh, Am]

For Appellant: Shri G. Mallikarjuna, CIT, DRFor Respondent: Shri A. K. Tibrewal, FCA

Section 143(3)Section 41(1)

…ter charges to be treated as an aid to setting up of the industry’ of the assessee…………. . The subsidies are operational subsidies and not capital subsidies”. The above facts of the case are similar to the case of Kesoram Industries & Cotton Mills Ltd. (1991) 191 ITR 518 (Cal) wherein the subsidy received by way of refund of Sales Tax levied on raw materials, machinery, finished goods etc. Thus these two judicial decisions are Budge Budge Refineries Ltd., AYs 2007-08 & 2008-09 mainly based on two factors : First, subsidy for carrying on business (conditional), secondly the incentive by way of refund of Sales Tax…

DCIT, New Delhi vs. M/S. Indo Rama Synthetics Ltd., Gurgaon

In the result appeal of the revenue is dismissed

ITA 5998/DEL/2013[2009-10]Status: DisposedITAT Delhi04 Jul 2016AY 2009-10

Bench: Shri I.C.Sudhir & Shri Prashant Maharishidcit, Indo Rama Synthetics Ltd., 10Th Floor, Dlf Square, Circle-11(1), Room No.312, Vs. C.R.Building, New Delhi Dlf Phase-Ii, Gurgaon Pan:Aaaci1530L (Appellant) (Respondent)

For Appellant: Smt. Paramita M. Biswas, CIT DRFor Respondent: Ms. Deepashree Rao, CA

…hey 9 were supplementary trade receipts and not capital payments, although they might be called advances or might be subject to contingency of repayment. iii). Reliance was placed on the decision in the case of Kesoram Industries & cotton Mills Ltd. vs. CIT, 191 ITR 518 of Hon‟ble High Court of Calcutta. Accordingly, AO added the amount of subsidy received as revenue receipt. 8. Upon assessee‟s appeal, Ld.CIT(A) observed that the sales tax subsidy pertains to assessee‟s unit at Butibori. Butibori is an industrial area developed by Maharashtra Industrial Development corporation in1994. The assessee in 1995 set up…

Nasir Ahmed, Kolkata vs. Income Tax Officer, Ward - 33(3), Kolkata

In the result, assessee’s appeal stands allowed

ITA 2518/KOL/2013[2009-10]Status: DisposedITAT Kolkata03 Jun 2016AY 2009-10

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Raviassessment Year :2009-10

Section 143(3)Section 40A(3)

…d. A cessation of liability for the purpose of section 41(1) would mean irrevocable cessation so that there is no possibility of the liability being revived in future. The Calcutta High Court in the case of Kesoram Industries & Cotton Mills Ltd. v. CIT [1992] 196 ITR 845 (Cal) held that whether the liability of the assessee has been fully discharged is within the special knowledge of the se. he has to prove that in fact the liability subsists. Where the conduct and surrounding circumstances demonstrate that the amount has been remitted or forgone or the sum has ceased to be claimable, the liability of the assesse…

The West Bengal Power Development Corpn. Ltd., Kolkata vs. ACIT, Circle - 5, Kolkata

In the result, both the appeals of the assessee are treated as allowed for statistical purposes

ITA 834/KOL/2010[2006-07]Status: DisposedITAT Kolkata28 Apr 2016AY 2006-07

Bench: Shri P.M. Jagtap & Shri N.V. Vasudevan

…ses incurred on such erection was allowable as deduction being revenue expenditure. In support of this contention, reliance was placed by the assessee on the decision of the Hon’ble Calcutta High Court in the case of Kesoram Industries & Cotton Mills Limited [196 ITR 845]. The contention of the assessee was not found acceptable by the Assessing Officer. He held that in case of Kesoram Industries & Cotton Mills Limited (supra) cited by the assessee, the facts involved were different, inasmuch as, the assessee had written off old erected boiler materials of Rs.47.93 crores by debiting the relevant expenditure under…

M/S. Samwon Precision Mould Mfg (India) Pvt. Ltd., New Delhi vs. ITO, New Delhi

In the result, the appeal of the assessee is allowed

ITA 2043/DEL/2013[2008-09]Status: DisposedITAT Delhi02 Feb 2016AY 2008-09

Bench: Shri N.K. Saini & Shri A.T. Varkeyita No.2043/Del./2013 (Assessment Year : 2008-09) M/S. Samwon Precision Mould Mfg. (India) Pvt. Ltd., Vs, Ito, 1 / 24, Ground Floor, Asaf Ali Road, Ward 7 (2), New Delhi – 110 002. (Pan : Aahcs8926K) (Appellant) (Respondent)

For Appellant: Shri Salil Kapoor, AdvocateFor Respondent: Shri Sujit Kumar, Senior DR

Section 145Section 40A(3)

…s demonstrate that the amount has been remitted or forgone or the sum has ceased to be claimable against the assessee, it would be a clear case of remission or cessation of the liability of the assessee.” Kesoram Industries and Cotton Mills Ltd. v. CIT [1992] 196 ITR 845 (Cal.) The confirmation is placed in the assessment records. Therefore, out of the total liability shown towards M/s SPM by the assessee is Rs.7,35,30,351/- + Rs.50,09,447/-, while M/s SPM has confirmed only USD 1251736 x 40.02= INR 50,09,447/-. Therefore the balance amount of Rs.7,35,30,351/- is liable to be added back to the case of the assess…

DCIT, Circle - 8, Kolkata vs. M/S. E.I.H. Ltd., Kolkata

In the result, the appeal of the revenue in ITA NO

ITA 2182/KOL/2006[2003-04]Status: DisposedITAT Kolkata09 Dec 2015AY 2003-04

Bench: : Shri M. Balaganesh

For Appellant: Shri R.N Bajoria, Sr.Advocate &For Respondent: Shri Rajat Subhra Biswas, ld.CIT/DR

Section 143(3)Section 195Section 40Section 9(1)(vii)

…IN THE INCOME TAX APPELLATE TRIBUNAL, “A” BENCH, KOLKATA Shri Mahavir Singh,Judicial Member, and Before : Shri M. Balaganesh, Accountant Member ITA Nos. 2182/Kol/2006, 1876/Kol/2007 & 196/Kol/2010 A.Ys 2003-04, 2004-05 & 2005-06 DCIT, Cir-8, Kolkata Vs. M/s. E I H Limited PAN:AAACE6898B (Appellant) (Respondent) ITA Nos.57, 1846/Kol/2007 & 299/Kol/2010 AYs. 2003-04, 2004-05 & 2005-06 M/s. E I H Limited Vs. JCIT (OSD) Incharge/DCIT, Cir-8, Kolkata (Appellant) (Respondent) For the Appellant/department: Shri Rajat Subhra Biswas, ld.CIT/DR For the Respondent/Assessee : Shri R.N Bajoria, Sr.Advocate & Sh…

J.P. Morgan Services India P. Ltd, Mumbai vs. ITO RG 8(2)(2), Mumbai

In the result, Cross Objection filed by the assessee is dismissed and Assessee’s appeal is partly allowed and Revenue’s appeal is dismissed

ITA 5301/MUM/2011[2003-04]Status: DisposedITAT Mumbai30 Oct 2015AY 2003-04

Bench: Shri Amit Shukla & Shri Ashwani Tanejaassessment Year: 2003-04 J.P. Morgan Services Ito Rg 8(2)(2) India P. Ltd. बनाम/ 707A, C-10 7Th Floor, 9Th Floor, B Wing, Prism Bandra Kurla Complex Vs. Towers Mindspace, Bandra (E) Malad (W) Mumbai-51 Mumba-40004 (Assessee) (Revenue) P.A. No.Aabcd0503B Assessment Year: 2003-04 Ito Rg 8(2)(2) J.P. Morgan Services India P. 707A, C-10 7Th Ltd. बनाम/ Floor, Bandra 9Th Floor, B Wing, Prism Towers Vs. Kurla Complex Mindspace, Malad (W) Bandra (E) Mumba-40004 Mumbai-51. (Revenue) (Respondent) P.A. No. Aabcd0503B

For Appellant: 2. It is noted that the cross objection has been filed by the assessee beyond th

Section 143(3)Section 250Section 32

…ecisions in his favour, drew our attention on the propositions held in the decisions of DCIT vs Assam Asbestos Ltd 263 ITR 357, ITO vs Jacob Pacadiyil 43 ITD 459, Usha Alloys and Steels Ltd vs DClT 55 ITD 418 and Kesoram lndsutreis and Cotton Mills Ltd vs CIT 196 ITR 845. It was submitted that in Empire Jute Co. Ltd. vs CIT, 124 ITR 1, the Supreme Court held that there might be cases where expenditure even if incurred for obtaining an advantage of enduring benefit, would be on revenue account, and that what is material is to consider the nature of the advantage in a commercial sense. If the advantage consists, in…

CIT vs. Chipsoft Technology Pvt Ltd

The appeal is allowed in the

ITA/598/2011HC Delhi20 Jul 2012

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE R.V.EASWAR

Section 41Section 41(1)

…of liability. It was underlined that the ITAT erred in not holding that benefit had accrued to the assesse by virtue of the wage liability becoming time barred. The revenue relied on Kesoram Industries and Cotton Mills Ltd. v. Commissioner of Income-tax 196 ITR 845 (Cal). 5. It was argued by Mr. Parag Chawla, on behalf of the assesse that in the absence of any action altering the treatment of wage liability in the books, or any other such act, the revenue cannot arbitrarily treat what is a liability as a profit. It was submitted that in order to attract Section 41(1) there should be some overt objecti…

Commissioner of Income Tax Del vs. Usha Iron & Ferro Metal Corpn

The appeal is dismissed

ITA - 463 / 2007HC Delhi23 May 2007

…sidered for deciding whether there is an expansion of an existing business or not was before the Calcutta High Court in Kesoram Industries and Cotton Mills Ltd. v. Commissioner of Income- ITA No.463/2007 Page 4 of 7 2007:DHC:569-DB tax, (1992) 196 ITR 845. One of the considerations would be the purpose of the expenditure and its object and effect. If expenses are incurred in setting up a new business, it would be an expenditure incurred on capital account but where it does not amount to the starting of a new business, the expenses in connection therewith would be revenue expenses. In Kesoram…