Madras Industrial Investment Corporation Ltd. v. CIT

225 ITR 802Supreme Court of India1997#111 most cited

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.

568

judgments rely on this decision, according to BharatTax’s citation analysis of 367,154 Indian tax judgments — from 2008 to 2026.

Also referred to as

Madras Industrial Investment Corporation Ltd. v. CIT · 225 ITR 802 · SC · enduring benefit · amortisation · section 37(1) · revenue expenditure · capital expenditure · premium on debentures · straight line method · matching principle

Sections most often in play

Section 143(3)Section 37(1)Section 153ASection 147Section 153CSection 132Section 14ASection 263
Read the full judgment

Issues it is cited on

enduring benefitsection 32(1)revenue expenditureintangible assetssection 32capital expendituresection 35commercial expediencysection 30book profitsamalgamationmercantile system of accounting

Judgments citing Madras Industrial Investment Corporation Ltd. v. CIT

Rose Advertising Pvt. Ltd., Delhi vs. ITO, New Delhi

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

ITA 4237/DEL/2014[2010-11]Status: DisposedITAT Delhi16 Jun 2017AY 2010-11

Bench: Sh. N. K. Saini, Am & Smt. Beena A. Pillai, Jm Ita No. 4237/Del/2014 : Asstt. Year : 2010-11 Rose Advertising Pvt. Ltd., Vs Income Tax Officer, 5A, Shankar Gali, Govind Mohalla Ward-15(4), Haiderpur, Delhi-110088 New Delhi (Appellant) (Respondent) Pan No. Aaacr1077M Assessee By : Sh. Ved Jain, Adv. & Sh. Ashish Goel, Adv. Revenue By : Mrs. Shefali Swaroop, Cit Dr Date Of Hearing : 15.06.2017 Date Of Pronouncement : 16.06.2017 Order Per N. K. Saini, Am: This Is An Appeal By The Assessee Against The Order Dated 17.06.2014 Of Ld. Cit(A)-Xviii, New Delhi.

For Appellant: Sh. Ved Jain, Adv. &For Respondent: Mrs. Shefali Swaroop, CIT DR

…penditure 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. vs. CIT in 225 ITR 802allowed 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 professi…

Coimbatore Hitech Infrastructure Pvt. Ltd., Coimbatore vs. DCIT, Coimbatore

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

ITA 3180/CHNY/2016[2012-13]Status: DisposedITAT Chennai09 Jun 2017AY 2012-13

Bench: Shri Duvvuru Rl Reddy & Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.3180/Mds/2016 "नधा"रण वष"/Assessment Year:2012-13 M/S. Coimbatore Hitech Infrastructure The Deputy Commissioner Of Private Limited, No. 365, Thudiyalur Vs. Income Tax, Road, Saravanampatti Corporate Circle 2, Coimbatore 641 035. Coimbatore 641 018. [Pan: Aaccc5201G] (अपीलाथ" /Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से / Appellant By : Shri A.S. Sriraman, Advocate ""यथ" क" ओर से/Respondent By : Shri Shiva Srinivas, Jcit सुनवाई क" तार"ख/ Date Of Hearing : 29.03.2017 घोषणा क" तार"ख /Date Of Pronouncement : 09.06.2017 आदेश /O R D E R Per Duvvuru Rl Reddy: This Appeal Filed By The Assessee Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) 1, Coimbatore Dated 26.08.2016 Relevant To The Assessment Year 2012-13. The Only Effective Ground Raised In The Appeal Of The Assessee Is That The Ld. Cit(A) Has Erred In Confirming The Disallowance Of Made Under Section 14A Of The Income Tax Act, 1961 [Act” In Short] R.W. Rule 8D Of Income Tax Rules.

For Appellant: Shri A.S. Sriraman, AdvocateFor Respondent: Shri Shiva Srinivas, JCIT
Section 143(1)Section 143(2)Section 143(3)Section 14A

…आयकर अपील"य अ"धकरण, ‘‘ए” "यायपीठ, चे"नई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI "ी धु"वु" आर.एल रे"डी, "या"यक सद"य एवं "ी "ड.एस. सु"दर "संह, लेखा सद"य के सम" Before Shri Duvvuru RL Reddy, Judicial Member & Shri D.S. Sunder Singh Accountant Member आयकर अपील सं./I.T.A.No.3180/Mds/2016 "नधा"रण वष"/Assessment Year:2012-13 M/s. Coimbatore Hitech Infrastructure The Deputy Commissioner of Private Limited, No. 365, Thudiyalur Vs. Income Tax, Road, Saravanampatti Corporate Circle 2, Coimbatore 641 035. Coimbatore 641 018. [PAN: AACCC5201G] (अपीलाथ" /Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से / Appellan…

Rajasthan State Mines & Minerals Ltd., Jaipur vs. ACIT, Jaipur

In the result, appeal of the Revenue is partly allowed for statistical purpose

ITA 253/JPR/2015[2007-08]Status: DisposedITAT Jaipur30 May 2017AY 2007-08

…to be amortized over its useful life and is hence allowable u/s 37(1) of the Act. The Ld. Counsel of the assessee for this proposition relied upon the judgment of the Hon’ble Supreme Court in the case of Madras Industrial Investment Corporation Ltd. vs. CIT 225 ITR 802, and also the judgment of the 10 ITA No. 253/JP/2015 along with 13 other appeals. M/s Rajasthan State Mines & Minerals Ltd. Hon’ble Gujrat High Court rendered in the case of DCIT vs Sun Pharmaceuticals Ind. Ltd. 329 ITR 479. 5.2 Per contra Ld. Departmental Representatives submitted that this issue was before this Hon’ble Tribunal in Appeal of t…

Acnielsen Research Services P. Ltd, Mumbai vs. Addl CIT RG 5(1), Mumbai

In the result, the appeal filed by the assessee is allowed as pronounced in the open court in the presence of both the parties at the conclusion of hearing on 29th May, 2017

ITA 2388/MUM/2012[2008-09]Status: DisposedITAT Mumbai29 May 2017AY 2008-09

Bench: Shri G.S. Pannu & Shri Amarjit Singh: (A.Y : 2008-09) Acnielsen Research Services Vs. Addl. Cit, Range 5(1), Pvt. Ltd., Mumbai (Respondent) 6Th Floor, Godrej It Park, 02 Godraj Business District, Phirojshanagar, Lbs Marg, Vikroli (W), Mumbai 400 079 Pan : Aadca0218N (Appellant)

For Appellant: Shri Girish DaveFor Respondent: Shri Ajai Pratap Singh
Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “A”, MUMBAI BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI AMARJIT SINGH, JUDICIAL MEMBER : (A.Y : 2008-09) ACNielsen Research Services Vs. Addl. CIT, Range 5(1), Pvt. Ltd., Mumbai (Respondent) 6th floor, Godrej IT Park, 02 Godraj Business District, Phirojshanagar, LBS Marg, Vikroli (W), Mumbai 400 079 PAN : AADCA0218N (Appellant) Appellant by : Shri Girish Dave Respondent by : Shri Ajai Pratap Singh Date of Hearing : 29/05/2017 Date of Pronouncement : 29/05/2017 O R D E R PER G.S. PANNU, AM : The captioned appeal by the assessee is directed against the o…

ACIT, Chennai vs. M/S. Celebrity Fashions Ltd., Chennai

In the result, the appeal of the revenue is dismissed

ITA 2516/CHNY/2016[2011-12]Status: DisposedITAT Chennai26 May 2017AY 2011-12

Bench: Shri N.R.S. Ganesan & Shri D.S.Sunder Singhआयकर अपील सं./Ita No.2516/Mds/2016 "नधा+रण वष+ /Assessment Year: 2011-12

For Respondent: 14.03.2017
Section 14A

…आयकर अपील"य अ"धकरण, ‘बी’ "यायपीठ, चे"नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI "ी एन.आर.एस. गणेशन, "या"यक सद"य एवं "ी "ड.एस. सु"दर %संह, लेखा सद"य के सम* BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI D.S.SUNDER SINGH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2516/Mds/2016 "नधा+रण वष+ /Assessment Year: 2011-12 Vs. The Asst. Commissioner of Income M/s.Celebrity Fashions Ltd., SDV, IV and C2, 3rd Main Tax, Corporate Circle-1(2), Chennai-600 034. Road, MEPZ/SEZ, Tambaram, Chennai-600 045. [PAN: AAACC 3696 D] (अपीलाथ./Appellant) (/0यथ./Respondent) : अपीलाथ. क1 ओर से/ Appellant by Mr.Supriyo…

West Gujarat Expressway Ltd, Mumbai vs. DCIT 14(3)(2), Mumbai

In the result, the appeal of Revenue is dismissed and that of assessee is allowed

ITA 664/MUM/2015[2010-11]Status: DisposedITAT Mumbai26 May 2017AY 2010-11

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am Dy. Commissioner Of Income Tax, West Gujarat Expressway Circle 14(3)(1) Ltd. 453 Aayakar Bhavan, M.K. Marg The Il & Fs Financial Centre, Mumbai-400020 Vs. Plot No. C-22, G Block Bkc Complex, Bandra (E) Mumbai-400051 Pin No. Aaacw5862D Appellant .. Respondent West Gujarat Expressway Ltd. Dy. Commissioner Of Income Tax, The Il & Fs Financial Centre, Circle 14(3)(1) Plot No. C-22, G Block Bkc 453 Aayakar Bhavan, M.K. Vs. Complex, Bandra (E) Marg Mumbai-400051 Mumbai-400020 Pin No. Aaacw5862D Appellant .. Respondent

Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SRI MAHAVIR SINGH, JM AND SRI N.K. PRADHAN, AM Dy. Commissioner of Income Tax, West Gujarat Expressway Circle 14(3)(1) Ltd. 453 Aayakar Bhavan, M.K. Marg The IL & FS Financial Centre, Mumbai-400020 Vs. Plot No. C-22, G Block BKC Complex, Bandra (E) Mumbai-400051 PIN No. AAACW5862D Appellant .. Respondent West Gujarat Expressway Ltd. Dy. Commissioner of Income Tax, The IL & FS Financial Centre, Circle 14(3)(1) Plot No. C-22, G Block BKC 453 Aayakar Bhavan, M.K. Vs. Complex, Bandra (E) Marg Mumbai-400051 Mumbai-400020 PIN No. AAACW5862D Appellant .. Resp…

DCIT 14(3)(1), Mumbai vs. West Gujarat Expressway Ltd, Mumbai

In the result, the appeal of Revenue is dismissed and that of assessee is allowed

ITA 634/MUM/2015[2010-11]Status: DisposedITAT Mumbai26 May 2017AY 2010-11

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am Dy. Commissioner Of Income Tax, West Gujarat Expressway Circle 14(3)(1) Ltd. 453 Aayakar Bhavan, M.K. Marg The Il & Fs Financial Centre, Mumbai-400020 Vs. Plot No. C-22, G Block Bkc Complex, Bandra (E) Mumbai-400051 Pin No. Aaacw5862D Appellant .. Respondent West Gujarat Expressway Ltd. Dy. Commissioner Of Income Tax, The Il & Fs Financial Centre, Circle 14(3)(1) Plot No. C-22, G Block Bkc 453 Aayakar Bhavan, M.K. Vs. Complex, Bandra (E) Marg Mumbai-400051 Mumbai-400020 Pin No. Aaacw5862D Appellant .. Respondent

Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SRI MAHAVIR SINGH, JM AND SRI N.K. PRADHAN, AM Dy. Commissioner of Income Tax, West Gujarat Expressway Circle 14(3)(1) Ltd. 453 Aayakar Bhavan, M.K. Marg The IL & FS Financial Centre, Mumbai-400020 Vs. Plot No. C-22, G Block BKC Complex, Bandra (E) Mumbai-400051 PIN No. AAACW5862D Appellant .. Respondent West Gujarat Expressway Ltd. Dy. Commissioner of Income Tax, The IL & FS Financial Centre, Circle 14(3)(1) Plot No. C-22, G Block BKC 453 Aayakar Bhavan, M.K. Vs. Complex, Bandra (E) Marg Mumbai-400051 Mumbai-400020 PIN No. AAACW5862D Appellant .. Resp…

Mahindra & Mahindra Ltd, Mumbai vs. Addl CIT RG 2(2), Mumbai

ITA 3998/MUM/2010[2000-01]Status: DisposedITAT Mumbai16 May 2017AY 2000-01
For Appellant: Shri M.P. MahajaniFor Respondent: Shri N.P. Singh-CIT-DR

…आयकर अपीलीय अिधकरण, मुंबई “बी” खंडपीठ म" Income-tax Appellate Tribunal -“B”Bench Mumbai सव"ी राजे"",लेखा सद"य एवं सी. एन. "साद, "याियक सद"य Before S/Sh.Rajendra,Accountant Member and C. N. Prasad,Judicial Member आयकर आयकर अपील अपील संसंसंसं./I.T.A./3998/Mum/2010 ,िनधा"रण िनधा"रण वष" वष" /Assessment Year:2000-01 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" आयकर आयकर अपील अपील संसंसंसं./I.T.A./7581/Mum/2011 ,िनधा"रण िनधा"रण वष" वष" /Assessment Year:2001-02 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" Mahindra & Mahindra Limited Addl. CIT, Range-2(2) Mahindra Towers, Ground Floor, Aayakar Bhavan, M.K. Marg Corpor…

Data Infosys Limited, Alwar vs. DCIT, Alwar

In the result, revenue’s ground no

ITA 58/JPR/2014[2008-09]Status: DisposedITAT Jaipur09 May 2017AY 2008-09
For Appellant: Shri P.C. Parwal (C.A.)For Respondent: Shri R.A.Verma (Addl. CIT)
Section 10ASection 35D

…ase of M/s Vijay Solvex Ltd. for AY 1995-96 where product development expenditure claimed on deferred basis over the period of 5 years was held allowable in view of the decision of Supreme Court in case of Madras Industrial Investment Corporation Ltd. Vs. CIT 225 ITR 802. It is not in dispute that in all other years, the deferred revenue expenditure claimed by the assessee has been allowed and therefore in view of the decision in case of CIT Vs. Excel Industries Ltd. 358 ITR 295, the claim of the assessee is rightly allowed by CIT(A). 6.3 The ld. D/R has supported the order of the AO and also submitted that the…

A.C.I.T. Circle 6(1), Mumbai vs. Inx Media Pvt. Ltd., Mumbai

In the result, appeal of the Revenue is partly allowed

ITA 7216/MUM/2011[2008-09]Status: DisposedITAT Mumbai26 Apr 2017AY 2008-09

Bench: Shri D. Karunakara Rao & Shri Sandeep Gosainacit, Circle 6(1), फनाभ/ M/S. Inx Media Pvt Ltd., R.No.506, 5 Th Floor, 3Rd Floor, Inx House, Apsara Vs. Aayakar Bhavan, M.K. Road, Complex, Dr. Dadasaheb C Mumbai – 20. Bhadmarkar Marg, Grand Road (E), Mumbai – 400 007. स्थामी रेखा सं./ Pan : Aabc15594D (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. M/S. Inx Media Pvt Ltd., फनाभ/ Acit, Circle 6(1), 3Rd Floor, Inx House, Apsara R.No.506, 5 Th Floor, Vs. Complex, Dr. Dadasaheb C Aayakar Bhavan, M.K. Road, Bhadmarkar Marg, Grand Road Mumbai – 20. (E), Mumbai – 400 007. स्थामी रेखा सं./ Pan : Aabc15594D (अऩीराथी /Appellant) (प्रत्मथी / Respondent) ..

For Appellant: Shri Vijay MehtaFor Respondent: Shri Shishir Dhamija, CIT-DR
Section 32Section 68

…ortized equally in next 5 AYs. This is with reference to Brand Marketing Cost. Thus, Rs. 11,73,02,688/- is allowed and the balance of Rs. 58,65,13,438/- is added to the income of the assessee. AO relied upon the Apex Court judgment in the case of M.I.I.C Ltd (225 ITR 802) (SC) and Bombay High Court judgment in the case of Taparia Tools Ltd (260 ITR 102) (Bom). AO is guided by the nature of expenditure ie sponsoring of Indo-Pak series 2007 (Rs. 4.8 Crs), launch expenditure (Rs. 0.60 crore) etc. AO is of the view that these expenditure helps in brand building of „INX Media‟ or „9X Channel‟. 15. However, FAA analyse…

ACIT, Chennai vs. M/S. South Asia Fm Ltd., Chennai

In the result, both, the appeals of the Revenue as well as the cross-objections of the assessee are dismissed

ITA 2813/CHNY/2016[2013-14]Status: DisposedITAT Chennai20 Apr 2017AY 2013-14

Bench: Shri N.R.S. Ganesan & Shri D.S. Sunder Singhआयकर अपील सं./Ita Nos.2809, 2810, 2811, 2812 & 2813/Mds/2016 "नधा"रण वष" / Assessment Years : 2009-10 To 2013-14 & C.O. Nos.184, 185, 186, 187 & 188/Mds/2016 (In Ita Nos.2809, 2810, 2811, 2812 & 2813/Mds/20160 The Assistant Commissioner Of M/S South Asia Fm Ltd., Income Tax, V. No.73, Murasolimaran Towers, Non-Corporate Circle – 15(1), Mrc Nagar Main Road, Chennai - 600 034. Mrc Nagar, Chennai - 600 028. Pan : Aajcs 6348 B (अपीलाथ"/Appellant) (Respondent & Cross-Objector)

For Appellant: Shri A.V. Sreekanth, JCITFor Respondent: Sh. N. Devanathan, Advocate
Section 14A

…t with in the same previous year. Thus, by application of the matching concept, in a year where there is no exempt income, there cannot be a disallowance of expenditure in relation to such assumed income. (Madras Industrial Investment Corporation Ltd. v. CIT (225 ITR 802)). The language of s.14A(1) should be read in that context and such that it advances the scheme of the Act rather than distort it. 16. In conclusion, we are of the view that the provisions of s.14A read with Rule 8D of the Rules cannot be made applicable in a vacuum i.e. in the absence of exempt income. The questions of law are answered in favo…

ACIT, Chennai vs. M/S. South Asia Fm Ltd., Chennai

In the result, both, the appeals of the Revenue as well as the cross-objections of the assessee are dismissed

ITA 2812/CHNY/2016[2012-13]Status: DisposedITAT Chennai20 Apr 2017AY 2012-13

Bench: Shri N.R.S. Ganesan & Shri D.S. Sunder Singhआयकर अपील सं./Ita Nos.2809, 2810, 2811, 2812 & 2813/Mds/2016 "नधा"रण वष" / Assessment Years : 2009-10 To 2013-14 & C.O. Nos.184, 185, 186, 187 & 188/Mds/2016 (In Ita Nos.2809, 2810, 2811, 2812 & 2813/Mds/20160 The Assistant Commissioner Of M/S South Asia Fm Ltd., Income Tax, V. No.73, Murasolimaran Towers, Non-Corporate Circle – 15(1), Mrc Nagar Main Road, Chennai - 600 034. Mrc Nagar, Chennai - 600 028. Pan : Aajcs 6348 B (अपीलाथ"/Appellant) (Respondent & Cross-Objector)

For Appellant: Shri A.V. Sreekanth, JCITFor Respondent: Sh. N. Devanathan, Advocate
Section 14A

…t with in the same previous year. Thus, by application of the matching concept, in a year where there is no exempt income, there cannot be a disallowance of expenditure in relation to such assumed income. (Madras Industrial Investment Corporation Ltd. v. CIT (225 ITR 802)). The language of s.14A(1) should be read in that context and such that it advances the scheme of the Act rather than distort it. 16. In conclusion, we are of the view that the provisions of s.14A read with Rule 8D of the Rules cannot be made applicable in a vacuum i.e. in the absence of exempt income. The questions of law are answered in favo…

ACIT, Chennai vs. M/S. South Asia Fm Ltd., Chennai

In the result, both, the appeals of the Revenue as well as the cross-objections of the assessee are dismissed

ITA 2811/CHNY/2016[2011-12]Status: DisposedITAT Chennai20 Apr 2017AY 2011-12

Bench: Shri N.R.S. Ganesan & Shri D.S. Sunder Singhआयकर अपील सं./Ita Nos.2809, 2810, 2811, 2812 & 2813/Mds/2016 "नधा"रण वष" / Assessment Years : 2009-10 To 2013-14 & C.O. Nos.184, 185, 186, 187 & 188/Mds/2016 (In Ita Nos.2809, 2810, 2811, 2812 & 2813/Mds/20160 The Assistant Commissioner Of M/S South Asia Fm Ltd., Income Tax, V. No.73, Murasolimaran Towers, Non-Corporate Circle – 15(1), Mrc Nagar Main Road, Chennai - 600 034. Mrc Nagar, Chennai - 600 028. Pan : Aajcs 6348 B (अपीलाथ"/Appellant) (Respondent & Cross-Objector)

For Appellant: Shri A.V. Sreekanth, JCITFor Respondent: Sh. N. Devanathan, Advocate
Section 14A

…t with in the same previous year. Thus, by application of the matching concept, in a year where there is no exempt income, there cannot be a disallowance of expenditure in relation to such assumed income. (Madras Industrial Investment Corporation Ltd. v. CIT (225 ITR 802)). The language of s.14A(1) should be read in that context and such that it advances the scheme of the Act rather than distort it. 16. In conclusion, we are of the view that the provisions of s.14A read with Rule 8D of the Rules cannot be made applicable in a vacuum i.e. in the absence of exempt income. The questions of law are answered in favo…

ACIT, Chennai vs. M/S. South Asia Fm Ltd., Chennai

In the result, both, the appeals of the Revenue as well as the cross-objections of the assessee are dismissed

ITA 2810/CHNY/2016[2010-11]Status: DisposedITAT Chennai20 Apr 2017AY 2010-11

Bench: Shri N.R.S. Ganesan & Shri D.S. Sunder Singhआयकर अपील सं./Ita Nos.2809, 2810, 2811, 2812 & 2813/Mds/2016 "नधा"रण वष" / Assessment Years : 2009-10 To 2013-14 & C.O. Nos.184, 185, 186, 187 & 188/Mds/2016 (In Ita Nos.2809, 2810, 2811, 2812 & 2813/Mds/20160 The Assistant Commissioner Of M/S South Asia Fm Ltd., Income Tax, V. No.73, Murasolimaran Towers, Non-Corporate Circle – 15(1), Mrc Nagar Main Road, Chennai - 600 034. Mrc Nagar, Chennai - 600 028. Pan : Aajcs 6348 B (अपीलाथ"/Appellant) (Respondent & Cross-Objector)

For Appellant: Shri A.V. Sreekanth, JCITFor Respondent: Sh. N. Devanathan, Advocate
Section 14A

…t with in the same previous year. Thus, by application of the matching concept, in a year where there is no exempt income, there cannot be a disallowance of expenditure in relation to such assumed income. (Madras Industrial Investment Corporation Ltd. v. CIT (225 ITR 802)). The language of s.14A(1) should be read in that context and such that it advances the scheme of the Act rather than distort it. 16. In conclusion, we are of the view that the provisions of s.14A read with Rule 8D of the Rules cannot be made applicable in a vacuum i.e. in the absence of exempt income. The questions of law are answered in favo…

ACIT, Chennai vs. M/S. South Asia Fm Ltd., Chennai

In the result, both, the appeals of the Revenue as well as the cross-objections of the assessee are dismissed

ITA 2809/CHNY/2016[2009-10]Status: DisposedITAT Chennai20 Apr 2017AY 2009-10

Bench: Shri N.R.S. Ganesan & Shri D.S. Sunder Singhआयकर अपील सं./Ita Nos.2809, 2810, 2811, 2812 & 2813/Mds/2016 "नधा"रण वष" / Assessment Years : 2009-10 To 2013-14 & C.O. Nos.184, 185, 186, 187 & 188/Mds/2016 (In Ita Nos.2809, 2810, 2811, 2812 & 2813/Mds/20160 The Assistant Commissioner Of M/S South Asia Fm Ltd., Income Tax, V. No.73, Murasolimaran Towers, Non-Corporate Circle – 15(1), Mrc Nagar Main Road, Chennai - 600 034. Mrc Nagar, Chennai - 600 028. Pan : Aajcs 6348 B (अपीलाथ"/Appellant) (Respondent & Cross-Objector)

For Appellant: Shri A.V. Sreekanth, JCITFor Respondent: Sh. N. Devanathan, Advocate
Section 14A

…t with in the same previous year. Thus, by application of the matching concept, in a year where there is no exempt income, there cannot be a disallowance of expenditure in relation to such assumed income. (Madras Industrial Investment Corporation Ltd. v. CIT (225 ITR 802)). The language of s.14A(1) should be read in that context and such that it advances the scheme of the Act rather than distort it. 16. In conclusion, we are of the view that the provisions of s.14A read with Rule 8D of the Rules cannot be made applicable in a vacuum i.e. in the absence of exempt income. The questions of law are answered in favo…

Lupin Ltd, Mumbai vs. Addl CIT Ltu, Mumbai

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

ITA 8097/MUM/2010[2006-07]Status: DisposedITAT Mumbai12 Apr 2017AY 2006-07

Bench: Shri Shamim Yahya, Am & Shri Ravish Sood, Jm

For Appellant: Ms. Vasanti PatelFor Respondent: Ms. S. Padmaja (CIT-DR)
Section 144Section 37(1)

…rred FCCB issue expenses of Rs.8,74,62,142/- in the year ended 31/3/2006 and the same has been claimed / spread over as revenue expenditure over a period of 5 years under sec 37(1) of the Act in view of the decision of Madras Industrial Investment Corporation 225 ITR 802 (SC). 12. The learned DRP has affirmed the action of the Assessing Officer by holding as under:- 9 A.Y.2006-07 “We have considered this issue. There is no dispute that the FCCB amount of USD 100 million by issuance of Zero Coupon convertible Bonds redeemable on 7/1/2011, were raised, for the intended use for new projects, modernization or expa…

M/S.. Synthes Medical Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, both the appeals for assessment years 2007-08 and 2008-09 filed by the assessee are partly allowed for statistical purposes and the appeal filed by the Revenue is dismissed

ITA 6006/DEL/2013[2008-09]Status: DisposedITAT Delhi31 Mar 2017AY 2008-09

Bench: Sh. Sudhanshu Srivastava & Sh. O.P. Kant

Section 143(2)Section 143(3)Section 32(1)Section 37(1)

…ssing Officer disallowed a sum of Rs.22,98,075/- and allowed 1/5th of the expenditure, amounting to Rs.5,75,118/-n out of the total expenditure of Rs.28,72,592/- by following the decision in the case of Madras Industrial Investment Corporation Limited Vs. CIT 225 ITR 802. The Ld. CIT-A accepted the claim of expenditure incurred on advertisement of Rs. 42,000/- but as regard the expenditure incurred or sales promotion of Rs.22,03,897/-, he disallowed 50% of the claim for & ITA No. 5807/Del/2013 want of proper documentation and adequate evidence regarding use of said items for business purpose. 5.1 Before us, the…

M/S.. Synthes Medical Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, both the appeals for assessment years 2007-08 and 2008-09 filed by the assessee are partly allowed for statistical purposes and the appeal filed by the Revenue is dismissed

ITA 6005/DEL/2013[2007-08]Status: DisposedITAT Delhi31 Mar 2017AY 2007-08

Bench: Sh. Sudhanshu Srivastava & Sh. O.P. Kant

Section 143(2)Section 143(3)Section 32(1)Section 37(1)

…ssing Officer disallowed a sum of Rs.22,98,075/- and allowed 1/5th of the expenditure, amounting to Rs.5,75,118/-n out of the total expenditure of Rs.28,72,592/- by following the decision in the case of Madras Industrial Investment Corporation Limited Vs. CIT 225 ITR 802. The Ld. CIT-A accepted the claim of expenditure incurred on advertisement of Rs. 42,000/- but as regard the expenditure incurred or sales promotion of Rs.22,03,897/-, he disallowed 50% of the claim for & ITA No. 5807/Del/2013 want of proper documentation and adequate evidence regarding use of said items for business purpose. 5.1 Before us, the…

DCIT, New Delhi vs. M/S. Synthes Medical Pvt. Ltd., New Delhi

In the result, both the appeals for assessment years 2007-08 and 2008-09 filed by the assessee are partly allowed for statistical purposes and the appeal filed by the Revenue is dismissed

ITA 5807/DEL/2013[2008-09]Status: DisposedITAT Delhi31 Mar 2017AY 2008-09

Bench: Sh. Sudhanshu Srivastava & Sh. O.P. Kant

Section 143(2)Section 143(3)Section 32(1)Section 37(1)

…ssing Officer disallowed a sum of Rs.22,98,075/- and allowed 1/5th of the expenditure, amounting to Rs.5,75,118/-n out of the total expenditure of Rs.28,72,592/- by following the decision in the case of Madras Industrial Investment Corporation Limited Vs. CIT 225 ITR 802. The Ld. CIT-A accepted the claim of expenditure incurred on advertisement of Rs. 42,000/- but as regard the expenditure incurred or sales promotion of Rs.22,03,897/-, he disallowed 50% of the claim for & ITA No. 5807/Del/2013 want of proper documentation and adequate evidence regarding use of said items for business purpose. 5.1 Before us, the…

DCIT, Chennai vs. M/S. Shriram Properties (P) Ltd., Chennai

In the result, the appeal filed by the Revenue is dismissed

ITA 2827/CHNY/2016[2012-13]Status: DisposedITAT Chennai29 Mar 2017AY 2012-13

Bench: Shri N.R.S. Ganesan & Shri D.S. Sunder Singh

For Appellant: Shri Shiva Srinivas, JCITFor Respondent: Shri R. Sivaraman, Advocate
Section 14A

…year. Thus, by application of the matching concept, in a year where there is no exempt income, there cannot be a disallowance of expenditure in relation to such assumed 8 I.T.A. No.2827/Mds/16 income. Madras Industrial Investment Corpn. Ltd. v. CIT (1997) 225 ITR 802/91 Taxman 340 (SC). The language of s.14A (1) should be read in that context and such that it advances the scheme of the Act rather than distort it.” 11. In view of the judgment of Madras High Court, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. 12. The next issu…