What is Madras Industrial Investment Corporation Ltd. v. CIT authority for?

Expenditure that provides an enduring benefit should be amortized over its useful life, not allowed as a deduction in a single year, to prevent a distorted picture of profits. Specifically, premium paid on debentures for their issue should be amortized on a straight-line method over the life of the debentures.

Which sections of the Income Tax Act does Madras Industrial Investment Corporation Ltd. v. CIT come up under?

It is most often cited in judgments turning on Section 143(3), Section 37(1), Section 153A, Section 147, Section 153C, Section 132.

Madras Industrial Investment Corporation Ltd. v. CIT (225 ITR 802)

Q: How many judgments cite Madras Industrial Investment Corporation Ltd. v. CIT?

568 judgments on BharatTax cite Madras Industrial Investment Corporation Ltd. v. CIT (225 ITR 802), spanning 2008 to 2026.

Nielsen (India) P.Ltd, Mumbai vs. DCIT RG 5(1), Mumbai

In the result, appeal of the assessee is allowed, as above

ITA 4168/MUM/2014[2010-11]Status: DisposedITAT Mumbai31 May 2018AY 2010-11

Bench: Shri G.S. Pannu & Shri Sandeep Gosain: (A.Y : 2010-11)

For Appellant: Shri Girish Dave &For Respondent: Shri T.A. Khan

Section 143(3)

…ny the claim of assessee for deduction of the impugned expenditure. 8. Before parting, we may also refer to the judgments of the Hon'ble Bombay High Court in the case of Taparia Tools Ltd., 260 ITR 102 (Bom) and Madras Industrial Investment Corporation Ltd., 225 ITR 802 (Bom), which have been referred to by the CIT(A). In our considered opinion, the ratio of the aforesaid decisions have no relevance so far as the instant controversy is concerned which is required to be adjudicated on the principles of consistency as well as on the basis of the year of crystallization of liability, which clearly takes place in th…

Thiruvananthapuram Road Development Co. Ltd, Orrissa vs. DCIT 14(3)(1), Mumbai

Appeal of the assessee is disposed of in terms of the order in ITA

ITA 622/MUM/2015[2010-11]Status: DisposedITAT Mumbai23 May 2018AY 2010-11

Bench: Shri Joginder Singh & Shri N.K. Pradhanassessment Year: 2010-11 Thiruvananthapuram Road Dcit-14(3)(1), Development Company Ltd. बनाम/ (Earlier Dcit-10(1), The Il & Fs Financial Centre, Room No.455, 4Th Floor, Vs. Plot No.C-22, Aayakar Bhavan, G Block, Bandra Kurla M. K. Road, Complex, Bandra (East), Mumbai-400020 Mumbai-400051 ("नधा"रती /Assessee) (राज"व /Revenue) P.A. No. Aacct0547J Assessment Year: 2010-11 Dcit-14(3)(1), Thiruvananthapuram Road (Earlier Dcit-10(1), Development Company Ltd. बनाम/ Room No.455, 4Th Floor, The Il & Fs Financial Vs. Aayakar Bhavan, Centre, Plot No.C-22, M. K. Road, G Block, Bandra Kurla Mumbai-400020 Complex, Bandra (East), Mumbai-400051 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No. Aacct0547J

Section 143Section 253Section 32

…xpenditure incurred by the assessee on such BOT projects brings to it an enduring benefit in the form of right to collect the toll during the period of the agreement. Hon'ble Supreme Court in the case of Madras Industrial Investment Corporation Ltd. v. CIT in 225 ITR 802 allowed spreading over of liability over a number of years on the ground that there was continuing benefit to the company over a period. Therefore, analogously, expenditure incurred on an infrastructure project for development of roads/highways under BOT agreement may be treated as having been made/incurred for the purposes of business or profess…

DCIT 14(3)(1), Mumbai vs. Thirvanthapuram Road Development Company Ltd, Mumbai

Appeal of the assessee is disposed of in terms of the order in ITA

ITA 4346/MUM/2015[2011-12]Status: DisposedITAT Mumbai23 May 2018AY 2011-12

Bench: Shri Joginder Singh & Shri N.K. Pradhanassessment Year: 2010-11 Thiruvananthapuram Road Dcit-14(3)(1), Development Company Ltd. बनाम/ (Earlier Dcit-10(1), The Il & Fs Financial Centre, Room No.455, 4Th Floor, Vs. Plot No.C-22, Aayakar Bhavan, G Block, Bandra Kurla M. K. Road, Complex, Bandra (East), Mumbai-400020 Mumbai-400051 ("नधा"रती /Assessee) (राज"व /Revenue) P.A. No. Aacct0547J Assessment Year: 2010-11 Dcit-14(3)(1), Thiruvananthapuram Road (Earlier Dcit-10(1), Development Company Ltd. बनाम/ Room No.455, 4Th Floor, The Il & Fs Financial Vs. Aayakar Bhavan, Centre, Plot No.C-22, M. K. Road, G Block, Bandra Kurla Mumbai-400020 Complex, Bandra (East), Mumbai-400051 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No. Aacct0547J

Section 143Section 253Section 32

…xpenditure incurred by the assessee on such BOT projects brings to it an enduring benefit in the form of right to collect the toll during the period of the agreement. Hon'ble Supreme Court in the case of Madras Industrial Investment Corporation Ltd. v. CIT in 225 ITR 802 allowed spreading over of liability over a number of years on the ground that there was continuing benefit to the company over a period. Therefore, analogously, expenditure incurred on an infrastructure project for development of roads/highways under BOT agreement may be treated as having been made/incurred for the purposes of business or profess…

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)

…ITA No 1714 of 2014 Country Club India Ltd Hyderabad. IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ A ‘ Bench, Hyderabad Before Smt. P. Madhavi Devi, Judicial Member AND Shri S.Rifaur Rahman, Accountant Member Country 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 Assessee : Shri P. Murali Mohan Rao For Revenue : Dr. K. Srinivas Reddy, DR Date of Hearing: 22.02.2018 Date of Pronouncement: 22.05.2018 O R D E R Per Smt. P. Madhavi Devi, J.M. This is assessee’s appe…

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

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH “A”, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER Assessment 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. PAN – AAACC8276B (Applicant) (Respondent) Assessment Year: 2009-10 Asst. CIT, Circle-1(2), M/s Country Club Hyderabad Hospitality & Holidays Ltd., (Formerly Known as Country Club India Ltd.,) Hyderabad. PAN-AAACC8276B (Applicant) (Respondent) Assessee by : Shri P. Murali Mohan Rao Revenue…

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

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH “A”, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER Assessment 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. PAN – AAACC8276B (Applicant) (Respondent) Assessment Year: 2009-10 Asst. CIT, Circle-1(2), M/s Country Club Hyderabad Hospitality & Holidays Ltd., (Formerly Known as Country Club India Ltd.,) Hyderabad. PAN-AAACC8276B (Applicant) (Respondent) Assessee by : Shri P. Murali Mohan Rao Revenue…

M/S Hilton Roulunds Ltd vs. Commissioner of Income Tax

ITA/325/2005HC Delhi20 Apr 2018

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…ure was disallowed by the AO. 7. The Commissioner of Income Tax (Appeals) [„CIT(A)‟, for short], on 24th March, 2000, after examining the matter and relying upon the decision of the Supreme Court in Madras Industrial Investment Corporation v. CIT (1997) 225 ITR 802 (SC) held that the payment of Rs.1 Crore was revenue expenditure and the appellant was entitled to the deduction. CIT(A) concluded that the expenditure incurred in connection with right to use the trademark was important in the operations of the business of the assessee as also for its efficiency and profitability. Accordingly, the deduction…

DCIT, Circle-10(1), Kolkata vs. M/S Bridge & Roof Co. (India) Ltd., Kolkata

In the result, Revenue’s appeal stands partly allowed for statistical purpose as indicated above

ITA 2176/KOL/2016[2014-15]Status: DisposedITAT Kolkata20 Apr 2018AY 2014-15

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmedassessment Year :2014-15 Dcit, Circle10(1), V/S. M/S Bridge & Roof Co. Aayakar Bhawan, 3Rd (India) Ltd., 2?1, Russel Street, 5Th Floor, Floor, P-7, Chowringhee Square, Kolkata-69 Kolkata-71 [Pan No.Aabcb 3166 E] .. अपीलाथ" /Appellant ""यथ"/Respondent Md. Usman, Cit-Dr अपीलाथ" क" ओर से/By Appellant Shri P.K. Agarwallaa, Fca ""यथ" क" ओर से/By Respondent 12-02-2018 सुनवाई क" तार"ख/Date Of Hearing 20-04-2018 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)-4, Kolkata Dated 16.08.2016. Assessment Was Framed By Dcit, Circle-10(1), Kolkata U/S 143(3) Of The Income Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) Vide His Order Dated 28.03.2016 For Assessment Year 2014-15. The Grounds Raised By Revenue, Which Reads As Under:- “1. Whether The Ld. Cit(A) Was Correct In Holding That The Customers Of The Assessee Have Settled The Accounts Permanently After Deducting The Liquidated Damages & They Have Refused To Pay The Amount Forever? Was Not He Wrong In Holding That The Assessee Company Has Extinguished Its Right To Receive Money From Its Clients? 2. Whether The Ld. Cit(A) Was Correct In Deleting The Addition On Account Of Entertainment Expenses Despite The Fact That The Assessee Could Not Produce Any Documentary Evidence In Support Of Its Claim? Has Not The Ao The Right To Enquire Into Purpose Of Expenditure & Does The Doctrine That The Businessman Is The Best Judge Of Business Expediency Affect The Rights And

Section 143(3)

…evaluation report of Engineering Department. Therefore these were written off for a period of five years. The assessee in support of its claim also relied on the judgment of Hon'ble Supreme Court in the case of Madras Industrial Investment (1997) reported in 225 ITR 802 (SC) and the judgment of Hon'ble jurisdictional High Court in the case of Hindustan Aluminium Corporation Ltd. (1983) 144 ITR 974 (Cal). The assessee also submitted that there is no valuation of closing stock at the end of year and there is no under assessment of tax. However, AO disregarded the contention of assessee by observing that category o…