Lakshmiji Sugar Mills Co. (P) Ltd. v. CIT

82 ITR 376Supreme Court of India1971#1741 most cited

What is Lakshmiji Sugar Mills Co. (P) Ltd. v. CIT authority for?

A one-time lease rent payment made for a lease period is generally considered capital expenditure and not deductible as a revenue expenditure.

65

judgments rely on this decision, according to BharatTax’s citation analysis of 366,369 Indian tax judgments — from 2010 to 2026.

Also referred to as

Lakshmiji Sugar Mills Co P Ltd Vs CIT · capital expenditure · revenue expenditure · commuted lease rent · enduring benefit · lease rentals · Empire Jute Co Vs CIT · Madras Auto Services (P) Ltd · section 256

Sections most often in play

Section 143(3)Section 254
Read the full judgment

Issues it is cited on

section 35abtest of enduring benefitsection 256(1)section 35abbsection 44csection 256section 35asection 10(15)resulting companyminimum alternate taxenduring benefitlegal expenses

Judgments citing Lakshmiji Sugar Mills Co. (P) Ltd. v. CIT

M/S Saregama India Limited, Kolkata vs. DCIT, Cir.-3(1), Kolkata

ITA 310/KOL/2017[2004-05]Status: DisposedITAT Kolkata29 Jan 2020AY 2004-05

Bench: Shri S.S.Godara & Dr. A.L. Saini

Section 143(3)

…several decisions delivered by the Hon'ble Apex Court and other High Court of the law. Assam Bengal Cement Co. Ltd. vs. CIT [1995] 27 ITR 34 (SC)/CIT vs. Shri Digvijay Cement Co. Ltd. [1986] 159 ITR 253 (Guj./Lakshmiji Sugar Mills Co. (P) Ltd. vs. CIT [1971] 82 ITR 376 (SC)/CIT Vs Menora Hosiery Works (P) Ltd. [1977] 109 ITR 714 (Bom.)/Premier Automobiles Ltd. vs. CIT [1984] 150 ITR 28 (Bom.)/CIT vs. Panipat Woollen & General Mills Co. Ltd. [1976] 103 ITR 66 (SC)/CIT vs. Amalgamated Jam bad Syndicate (P) Ltd. [1979] 117 ITR 698 (Cal.)/CIT vs. D. Mandal [1988] 41 Taxman 129 (Cal.)/CIT Vs. Zoroaster & Co. [1982] 1…

M/S Saregama India Limited, Kolkata vs. DCIT, Cir.-3(1), Kolkata

ITA 309/KOL/2017[2003-04]Status: DisposedITAT Kolkata29 Jan 2020AY 2003-04

Bench: Shri S.S.Godara & Dr. A.L. Saini

Section 143(3)

…several decisions delivered by the Hon'ble Apex Court and other High Court of the law. Assam Bengal Cement Co. Ltd. vs. CIT [1995] 27 ITR 34 (SC)/CIT vs. Shri Digvijay Cement Co. Ltd. [1986] 159 ITR 253 (Guj./Lakshmiji Sugar Mills Co. (P) Ltd. vs. CIT [1971] 82 ITR 376 (SC)/CIT Vs Menora Hosiery Works (P) Ltd. [1977] 109 ITR 714 (Bom.)/Premier Automobiles Ltd. vs. CIT [1984] 150 ITR 28 (Bom.)/CIT vs. Panipat Woollen & General Mills Co. Ltd. [1976] 103 ITR 66 (SC)/CIT vs. Amalgamated Jam bad Syndicate (P) Ltd. [1979] 117 ITR 698 (Cal.)/CIT vs. D. Mandal [1988] 41 Taxman 129 (Cal.)/CIT Vs. Zoroaster & Co. [1982] 1…

Niit Technologies Ltd., New Delhi vs. ACIT, New Delhi

In the result, both the appeals of the assessee are partly allowed and the appeal of Revenue for assessment year 2007-08

ITA 5525/DEL/2013[2008-09]Status: DisposedITAT Delhi28 Jan 2020AY 2008-09

Bench: Shri Bhavnesh Saini & Shri O.P. Kant

For Appellant: 1. That the Commissioner of Income-Tax (Appeals) erred on facts and in law in up
Section 14ASection 35D

…ed one timely lease rent. 9.8 The Ld. CIT(A) after considering the decisions on the issue of when a particular expenditure has to be considered as capital expenditure, in the case of Empire Jute Co. Vs CIT 124 ITR 1 (SC); Lakshmiji Sugar Mills Co P Ltd Vs CIT 82 ITR 376 (SC) and Madras Auto Services (P) Ltd 233 ITR 468 (SC) allowed the claim of the assessee observing as under: “8.5.2 The appellant submitted that it had claimed deduction of Rs.77,98,042 on account of payment of commuted lease rentals to Greater Noida Authority for Plot No. 2A taken on lease situated in Greater Noida Industrial Development Area Dis…

Niit Technologies Ltd., New Delhi vs. ACIT, New Delhi

In the result, both the appeals of the assessee are partly allowed and the appeal of Revenue for assessment year 2007-08

ITA 5524/DEL/2013[2007-08]Status: DisposedITAT Delhi28 Jan 2020AY 2007-08

Bench: Shri Bhavnesh Saini & Shri O.P. Kant

For Appellant: 1. That the Commissioner of Income-Tax (Appeals) erred on facts and in law in up
Section 14ASection 35D

…ed one timely lease rent. 9.8 The Ld. CIT(A) after considering the decisions on the issue of when a particular expenditure has to be considered as capital expenditure, in the case of Empire Jute Co. Vs CIT 124 ITR 1 (SC); Lakshmiji Sugar Mills Co P Ltd Vs CIT 82 ITR 376 (SC) and Madras Auto Services (P) Ltd 233 ITR 468 (SC) allowed the claim of the assessee observing as under: “8.5.2 The appellant submitted that it had claimed deduction of Rs.77,98,042 on account of payment of commuted lease rentals to Greater Noida Authority for Plot No. 2A taken on lease situated in Greater Noida Industrial Development Area Dis…

ACIT, New Delhi vs. M/S Niit Technologies Ltd., New Delhi

In the result, both the appeals of the assessee are partly allowed and the appeal of Revenue for assessment year 2007-08

ITA 5492/DEL/2013[2008-09]Status: DisposedITAT Delhi28 Jan 2020AY 2008-09

Bench: Shri Bhavnesh Saini & Shri O.P. Kant

For Appellant: 1. That the Commissioner of Income-Tax (Appeals) erred on facts and in law in up
Section 14ASection 35D

…ed one timely lease rent. 9.8 The Ld. CIT(A) after considering the decisions on the issue of when a particular expenditure has to be considered as capital expenditure, in the case of Empire Jute Co. Vs CIT 124 ITR 1 (SC); Lakshmiji Sugar Mills Co P Ltd Vs CIT 82 ITR 376 (SC) and Madras Auto Services (P) Ltd 233 ITR 468 (SC) allowed the claim of the assessee observing as under: “8.5.2 The appellant submitted that it had claimed deduction of Rs.77,98,042 on account of payment of commuted lease rentals to Greater Noida Authority for Plot No. 2A taken on lease situated in Greater Noida Industrial Development Area Dis…

ACIT, New Delhi vs. M/S Niit Technologies Ltd., New Delhi

In the result, both the appeals of the assessee are partly allowed and the appeal of Revenue for assessment year 2007-08

ITA 5491/DEL/2013[2007-08]Status: DisposedITAT Delhi28 Jan 2020AY 2007-08

Bench: Shri Bhavnesh Saini & Shri O.P. Kant

For Appellant: 1. That the Commissioner of Income-Tax (Appeals) erred on facts and in law in up
Section 14ASection 35D

…ed one timely lease rent. 9.8 The Ld. CIT(A) after considering the decisions on the issue of when a particular expenditure has to be considered as capital expenditure, in the case of Empire Jute Co. Vs CIT 124 ITR 1 (SC); Lakshmiji Sugar Mills Co P Ltd Vs CIT 82 ITR 376 (SC) and Madras Auto Services (P) Ltd 233 ITR 468 (SC) allowed the claim of the assessee observing as under: “8.5.2 The appellant submitted that it had claimed deduction of Rs.77,98,042 on account of payment of commuted lease rentals to Greater Noida Authority for Plot No. 2A taken on lease situated in Greater Noida Industrial Development Area Dis…

R.B.Seth Shreeram Narsinghdas, Nagpur vs. A.C.I.T. Central Cir. 2(3), Nagpur

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

ITA 196/NAG/2015[2011-12]Status: DisposedITAT Nagpur21 Jan 2020AY 2011-12

Bench: Shri D. Karunakara Rao, Am & Shri Partha Sarathi Chaudhury, Jm आयकर अपीऱ सं. / Ita No.196/Nag/2015 ननिाारण वषा / Assessment Year : 2011-12 R.B. Seth Shreeram Narsingdas, C/O. Ajay Saraf, C-2, Yogeshwar Ganga Apartments, Ramdaspeth, Nagpur-10. Pan : Aacfr0227N .......अऩीऱाथी / Appellant बनाम / V/S.

For Appellant: Shri Supesh BandhyaFor Respondent: Shri Milind Bhusari
Section 132(4)

…ther a capital expenditure nor a revenue expenditure.” On this issue, the Tribunal has held as follows: “12. We are of the considered opinion, the decision relied upon by the Learned Counsel of the assessee in the case of Laxmi Sugar Mills Pvt. Ltd. Vs. CIT 82 ITR 376 (Supreme Court) and Gwalior Rayon Silk Mfg Company Ld. Vs. CIT 172 ITR 131 are more appropriate to the facts of the case. 13. In the case of Laxmi Sugar Mills (supra.), the Hon’ble Apex Court has observed as under: “The assessee, a private company on the business of manufacture and sale of sugar, paid to the Cane Development Council certain 6 A…

DCIT, New Delhi vs. M/S Ircon International Ltd., New Delhi

In the result, all the three appeals of the assessee for A

ITA 3805/DEL/2008[2003-04]Status: DisposedITAT Delhi31 Oct 2019AY 2003-04

Bench: : Shri Bhavnesh Saini & Shri O.P. Kant

Section 80HSection 80I

…e assessee might take of his rights nor can the existence or absence of entries in the books of account be decisive or conclusive in the matter. 11.8 We further note that the Hon’ble Supreme Court in the case of Lakkshmiji Sugar Mills P Co. Ltd Vs CIT (1971) 82 ITR 376 (SC) , which has been further referred in CIT Vs Sri Mangayarkarasi Mills P.Ltd (2009) 315 ITR 114(SC) , it is held that bringing into existence a new asset or an enduring benefit for the assessee amounts to capital expenditure. This principle has also been reiterated by the Hon’ble Supreme Court in the case of CIT Vs. Sharvana Spinning Mills…

Ircon International Ltd., New Delhi vs. DCIT, Circle-11(1), Delhi

In the result, all the three appeals of the assessee for A

ITA 705/DEL/2006[2002-2003]Status: DisposedITAT Delhi31 Oct 2019AY 2002-2003

Bench: : Shri Bhavnesh Saini & Shri O.P. Kant

Section 80HSection 80I

…e assessee might take of his rights nor can the existence or absence of entries in the books of account be decisive or conclusive in the matter. 11.8 We further note that the Hon’ble Supreme Court in the case of Lakkshmiji Sugar Mills P Co. Ltd Vs CIT (1971) 82 ITR 376 (SC) , which has been further referred in CIT Vs Sri Mangayarkarasi Mills P.Ltd (2009) 315 ITR 114(SC) , it is held that bringing into existence a new asset or an enduring benefit for the assessee amounts to capital expenditure. This principle has also been reiterated by the Hon’ble Supreme Court in the case of CIT Vs. Sharvana Spinning Mills…

DCIT, Circle-11(1) vs. Ircon International Ltd

In the result, all the three appeals of the assessee for A

ITA 2234/DEL/2005[2001-2002]Status: DisposedITAT Delhi31 Oct 2019AY 2001-2002

Bench: : Shri Bhavnesh Saini & Shri O.P. Kant

Section 80HSection 80I

…e assessee might take of his rights nor can the existence or absence of entries in the books of account be decisive or conclusive in the matter. 11.8 We further note that the Hon’ble Supreme Court in the case of Lakkshmiji Sugar Mills P Co. Ltd Vs CIT (1971) 82 ITR 376 (SC) , which has been further referred in CIT Vs Sri Mangayarkarasi Mills P.Ltd (2009) 315 ITR 114(SC) , it is held that bringing into existence a new asset or an enduring benefit for the assessee amounts to capital expenditure. This principle has also been reiterated by the Hon’ble Supreme Court in the case of CIT Vs. Sharvana Spinning Mills…

Ircon International Limited, New Delhi vs. ACIT, New Delhi

In the result, all the three appeals of the assessee for A

ITA 3804/DEL/2008[2003-04]Status: DisposedITAT Delhi31 Oct 2019AY 2003-04

Bench: : Shri Bhavnesh Saini & Shri O.P. Kant

Section 80HSection 80I

…e assessee might take of his rights nor can the existence or absence of entries in the books of account be decisive or conclusive in the matter. 11.8 We further note that the Hon’ble Supreme Court in the case of Lakkshmiji Sugar Mills P Co. Ltd Vs CIT (1971) 82 ITR 376 (SC) , which has been further referred in CIT Vs Sri Mangayarkarasi Mills P.Ltd (2009) 315 ITR 114(SC) , it is held that bringing into existence a new asset or an enduring benefit for the assessee amounts to capital expenditure. This principle has also been reiterated by the Hon’ble Supreme Court in the case of CIT Vs. Sharvana Spinning Mills…

Ircon International Ltd vs. Addl. CIT, Range-11

In the result, all the three appeals of the assessee for A

ITA 1825/DEL/2005[2001-2002]Status: DisposedITAT Delhi31 Oct 2019AY 2001-2002

Bench: : Shri Bhavnesh Saini & Shri O.P. Kant

Section 80HSection 80I

…e assessee might take of his rights nor can the existence or absence of entries in the books of account be decisive or conclusive in the matter. 11.8 We further note that the Hon’ble Supreme Court in the case of Lakkshmiji Sugar Mills P Co. Ltd Vs CIT (1971) 82 ITR 376 (SC) , which has been further referred in CIT Vs Sri Mangayarkarasi Mills P.Ltd (2009) 315 ITR 114(SC) , it is held that bringing into existence a new asset or an enduring benefit for the assessee amounts to capital expenditure. This principle has also been reiterated by the Hon’ble Supreme Court in the case of CIT Vs. Sharvana Spinning Mills…

ACIT Central Circle, Salem vs. Thriveni Earthmovers Pvt. Ltd., Salem

In the result, the appeal filed by the Revenue in ITA

ITA 2283/CHNY/2018[2014-15]Status: DisposedITAT Chennai25 Sept 2019AY 2014-15

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. Nos. 2280, 2281, 2282 & 2283/Chny/2018 "नधा"रण वष" /Assessment Years :2011-12, 2012-13, 2013-14 & 2014-15 The Assistant Commissioner Vs. M/S. Thriveni Earthmovers Pvt Ltd, Of Income Tax, 22/110, Greenways Road, Central Circle, Fairlands, Salem Salem 636 016. [Pan Aabct 6759R] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. M. Srinivasa Rao, IRS, CIT
Section 143(3)Section 148

…owance of road lying expenditure, ld. CIT(A) directed the ITA Nos.2280-83 /2018 :- 58 -: Assessing Officer to allow the claim as revenue expenditure following the decisions of Hon'ble Supreme Court in the cases of Laskhmiji Sugar Mills Co. P. Ltd vs. CIT, 82 ITR 376, CIT vs. Kirkend Coal Co, 77 ITR 530, Jurisdictional High Court in the cases of CIT vs. Coats Viyella India Ltd 253 ITR 667 and CIT vs. T.V. Sundaram Iyengar & Sons (P) Ltd, 95 ITR 428, the CIT(Appeals) deleted the additions on legal expenses and disallowance u/s.14A of the Act. Being aggrieved by the order of the ld. CIT(A), the Revenue 52.…

ACIT Central Circle, Salem vs. Thriveni Earthmovers Pvt. Ltd., Salem

In the result, the appeal filed by the Revenue in ITA

ITA 2282/CHNY/2018[2013-14]Status: DisposedITAT Chennai25 Sept 2019AY 2013-14

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. Nos. 2280, 2281, 2282 & 2283/Chny/2018 "नधा"रण वष" /Assessment Years :2011-12, 2012-13, 2013-14 & 2014-15 The Assistant Commissioner Vs. M/S. Thriveni Earthmovers Pvt Ltd, Of Income Tax, 22/110, Greenways Road, Central Circle, Fairlands, Salem Salem 636 016. [Pan Aabct 6759R] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. M. Srinivasa Rao, IRS, CIT
Section 143(3)Section 148

…owance of road lying expenditure, ld. CIT(A) directed the ITA Nos.2280-83 /2018 :- 58 -: Assessing Officer to allow the claim as revenue expenditure following the decisions of Hon'ble Supreme Court in the cases of Laskhmiji Sugar Mills Co. P. Ltd vs. CIT, 82 ITR 376, CIT vs. Kirkend Coal Co, 77 ITR 530, Jurisdictional High Court in the cases of CIT vs. Coats Viyella India Ltd 253 ITR 667 and CIT vs. T.V. Sundaram Iyengar & Sons (P) Ltd, 95 ITR 428, the CIT(Appeals) deleted the additions on legal expenses and disallowance u/s.14A of the Act. Being aggrieved by the order of the ld. CIT(A), the Revenue 52.…

ACIT Central Circle, Salem vs. Thriveni Earthmovers Pvt. Ltd., Salem

In the result, the appeal filed by the Revenue in ITA

ITA 2281/CHNY/2018[2012-13]Status: DisposedITAT Chennai25 Sept 2019AY 2012-13

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. Nos. 2280, 2281, 2282 & 2283/Chny/2018 "नधा"रण वष" /Assessment Years :2011-12, 2012-13, 2013-14 & 2014-15 The Assistant Commissioner Vs. M/S. Thriveni Earthmovers Pvt Ltd, Of Income Tax, 22/110, Greenways Road, Central Circle, Fairlands, Salem Salem 636 016. [Pan Aabct 6759R] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. M. Srinivasa Rao, IRS, CIT
Section 143(3)Section 148

…owance of road lying expenditure, ld. CIT(A) directed the ITA Nos.2280-83 /2018 :- 58 -: Assessing Officer to allow the claim as revenue expenditure following the decisions of Hon'ble Supreme Court in the cases of Laskhmiji Sugar Mills Co. P. Ltd vs. CIT, 82 ITR 376, CIT vs. Kirkend Coal Co, 77 ITR 530, Jurisdictional High Court in the cases of CIT vs. Coats Viyella India Ltd 253 ITR 667 and CIT vs. T.V. Sundaram Iyengar & Sons (P) Ltd, 95 ITR 428, the CIT(Appeals) deleted the additions on legal expenses and disallowance u/s.14A of the Act. Being aggrieved by the order of the ld. CIT(A), the Revenue 52.…

ACIT Central Circle, Salem vs. Thriveni Earthmovers Pvt. Ltd., Salem

In the result, the appeal filed by the Revenue in ITA

ITA 2280/CHNY/2018[2011-12]Status: DisposedITAT Chennai25 Sept 2019AY 2011-12

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. Nos. 2280, 2281, 2282 & 2283/Chny/2018 "नधा"रण वष" /Assessment Years :2011-12, 2012-13, 2013-14 & 2014-15 The Assistant Commissioner Vs. M/S. Thriveni Earthmovers Pvt Ltd, Of Income Tax, 22/110, Greenways Road, Central Circle, Fairlands, Salem Salem 636 016. [Pan Aabct 6759R] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. M. Srinivasa Rao, IRS, CIT
Section 143(3)Section 148

…owance of road lying expenditure, ld. CIT(A) directed the ITA Nos.2280-83 /2018 :- 58 -: Assessing Officer to allow the claim as revenue expenditure following the decisions of Hon'ble Supreme Court in the cases of Laskhmiji Sugar Mills Co. P. Ltd vs. CIT, 82 ITR 376, CIT vs. Kirkend Coal Co, 77 ITR 530, Jurisdictional High Court in the cases of CIT vs. Coats Viyella India Ltd 253 ITR 667 and CIT vs. T.V. Sundaram Iyengar & Sons (P) Ltd, 95 ITR 428, the CIT(Appeals) deleted the additions on legal expenses and disallowance u/s.14A of the Act. Being aggrieved by the order of the ld. CIT(A), the Revenue 52.…

Solarfield Energy Private Limited, Mumbai vs. ACIT Circle-2(3)(2), Mumbai

In the result, the appeal filed by the assessee is hereby ordered to be partly allowed

ITA 755/MUM/2018[2014-15]Status: DisposedITAT Mumbai19 Jul 2019AY 2014-15

Bench: Shri Rajesh Kumar, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.755/Mum/2018 (निर्धारण वर्ा / Assessment Year: 2014-15) Solarfield Energy Pvt. Ltd. बिधम/ Acit, Circle-2(3)(2) 21, 3Rd Floor, Sethi Mansion Aayakar Bhavan, Maharashi Vs. Kumtha Street, Ballard Karve Marg, Mumbai- Estate, Mumbai-400038. 400020. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaocs4380A (अपीलाथी /Appellant) (प्रत्यथी / Respondent) .. Assessee By: Shri Vijay Mehta Revenue By: Shri Chaudhary Arun Kumar Singh (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 16/07/2019 घोषणा की तारीख /Date Of Pronouncement: 19/07/2019 आदेश / O R D E R Per Amarjit Singh, Jm: The Assessee Has Filed The Present Appeal Against The Order Dated 18.12.2017 Passed By The Commissioner Of Income Tax (Appeals) -6, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2014- 15. 2. The Assessee Has Raised The Following Grounds: -

For Appellant: Shri Vijay MehtaFor Respondent: Shri Chaudhary Arun Kumar
Section 115JSection 143(1)Section 143(2)

…equired and in support of this contention, the Ld. Representative of the assessee has placed reliance upon the law settled by the Supreme Court titled as Sugar Factory and oil Mills (P) Ltd. Vs. CIT (125 ITR 293) and Lakshmiji Sugar Mills Co. P. Ltd. Vs. CIT (82 ITR 376) and CIT Vs. Bombay Dyeing and Manufacturing Co. Ltd. (219 ITR 521) and CIT Vs. Coats Viyella India Ltd. (253 ITR 667) and CIT Vs. Excel Industries Ltd. (122 ITR 995). However, on the other hand, the Ld. Representative of the Department has refuted the said contention. The factual position is not in dispute in which the assessee obtained the land…

ITO 3(3)(3), Mumbai vs. Thebroma Foods P.Ltd, Mumbai

In the result, the appeal of the Revenue in ITA no

ITA 765/MUM/2017[2012-13]Status: DisposedITAT Mumbai09 Apr 2019AY 2012-13

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.765/Mum/2017 (नििाारण वर्ा / Assessment Year : 2012-13) बिाम/ Ito 3(3)(3) M/S. Theobroma Foods R.No. 672, Pvt. Ltd., Aayakar Bhavan, 101, Jamuna Sagar, V. M.K. Road, 59/60, Shahid Bhagat New Marine Lines, Singh Road, Mumbai-400020 Colaba, Mumbai 400005 स्थायी ऱेखा सं./ Pan: Aacct0588K (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. Revenue By: Shri. D.G Pansari (Dr) Assessee By: Shri. Rohan Deshpande सुनवाई की तारीख /Date Of Hearing : 28.01.2019 घोषणा की तारीख /Date Of Pronouncement : 09.04.2019 आदेश / O R D E R Per Ramit Kochar: This Appeal, Filed By Revenue, Being Ita No. 765/Mum/2017, Is Directed Against Appellate Order Dated 28.10.2016 In Appeal No. Cit(A)-8/It-344/15-16, Passed By Learned Commissioner Of Income Tax (Appeals)-8, Mumbai (Hereinafter Called ―The Cit(A)‖), For Assessment Year(Ay) 2012-13, The Appellate Proceedings Had Arisen Before Learned Cit(A) From The Assessment Order Dated 31.03.2015 Passed By Learned Assessing Officer (Hereinafter Called ―The Ao‖) U/S 143(3) Of The Income-Tax Act, 1961 (Hereinafter Called ―The Act‖) For Ay 2012-13. I.T.A. No.765/Mum/2017

For Appellant: Shri. Rohan DeshpandeFor Respondent: Shri. D.G Pansari (DR)
Section 143(2)Section 143(3)Section 30

…of construction, the assessee did not acquire any capital asset and the only advantage which it had obtained was the lease of a new building at low rent. After adverting to the earlier judgments of the Court in Lakshmiji Sugar Mills Co. (P.) Ltd. v. CIT[1971] 82 ITR 376 (SC) , L.H. Sugar Factory & Oil Mills (P.) Ltd. v. CIT (1980) 125 ITR 293/4 Taxman 5 ($C) and CIT v. Associated Cement Companies Ltd. [1988] 172 ITR 257 /38 Taxman 11OA (SC) the Supreme Court observed as follows: "All these cases have looked upon expenditure which did bring about some kind of an enduring benefit to the company as a revenue expendi…

M/S Mysore Minerals Limited, Bangalore vs. CIT, Bangalore

In the result, appeal of the assessee is partly allowed

ITA 464/BANG/2014[2009-10]Status: DisposedITAT Bangalore25 Jan 2019AY 2009-10

Bench: Shri N.V. Vasudevan & Shri Jason P Boazassessment Year : 2009-10

For Appellant: Shri V Chandrashekar, AdvocateFor Respondent: Ms. Neera Malhotra, CIT
Section 143(3)Section 263Section 40A(3)Section 43B

…the AO in allowing claim of the assessee for deduction was incorrect even on merits. 12. The ld counsel for the assesee in his rejoinder placed reliance on the decision of the Hon’ble Supreme Court in the case of Lakshmiji Sugar Mills Co. Pvt. Ltd., Vs. CIT 82 ITR 376 (SC), wherein it was held that contribution made to keep development fund set up by state Govt. for development of roads between various sugar cane producing center and sugar mills was an expenditure incurred for reasons of commercial expediency are admissible deduction. Page 9 of 11 13. We have given a careful consideration to the rival submissi…

ACIT, Circle-1 vs. Oil & Natural Gas Corporation Ltd

In the result, appeal filed by the Revenue is dismissed

ITA 374/DEL/2005[2000-2001]Status: DisposedITAT Delhi17 Aug 2018AY 2000-2001

Bench: Shri N.K. Billaiya & Smt Beena A. Pillai

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Shefali Swaroop, CIT- DR

…expenditure so incurred should be allowed as revenue expenditure. In support of his contention, reliance was placed on the decisions in the following cases: a) CIT Vs. Madras Auto Services [P] Ltd 233 ITR 468 [SC] b) Lakshmiji Sugar Mills Co Pvt Ltd Vs. CIT 82 ITR 376 [SC] c) L.H. Sugar Factory and Oil Mills Pvt Ltd Vs. CIT 125 ITR 293 [SC] d) CIT Vs. Associated Cement Companies ltd 172 ITR 257 [SC] e) CIT Vs. DTTDC Ltd 350 ITR 1 [DEL] 68. Per contra, the ld. DR strongly submitted that the decisions relied upon by the ld. counsel for the assessee are misplaced. It is the say of the ld. DR that the helipad belo…