Maruti Udyog v. DCIT

92 ITD 119Income Tax Appellate Tribunal2005#1305 most cited

What is Maruti Udyog v. DCIT authority for?

The onus is on the revenue to establish the nexus between expenses incurred and exempt income before making a disallowance under section 14A.

87

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2016 to 2026.

Also referred to as

Maruti Udyog v. DCIT · 92 ITD 119 · section 14A · disallowance · exempt income · nexus · onus on revenue · expenditure

Sections most often in play

Section 14ASection 143(3)Section 194CSection 194ISection 32Section 36(1)(viii)Section 40(a)(ia)Section 41(1)

Issues it is cited on

section 8d(2)(ii)section 14a(3)section 14(2)section 14a(1)section 8dsection 33bsection 134section 198section 80ia(5)section 36(1)(viii)section 194imanagement fees

Judgments citing Maruti Udyog v. DCIT

DCIT 3(1), Mumbai vs. Edelweiss Capital Ltd, Mumbai

In the result appeals of Revenue are dismissed

ITA 7797/MUM/2011[2007-08]Status: DisposedITAT Mumbai14 Mar 2018AY 2007-08

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm

Section 143(3)Section 14ASection 36(1)(iii)

…of presumptions. In "ACIT v Eicher Ltd." 101 TTJ (Del) 369, that it was held that the burden is on the AO to establish nexus of I' expenses incurred with the earning of exempt income, before making any disallowance u/s. 14A of the Act In "Maruti Udyog v DCIT 92 ITD 119 (Del), it has been held that before making any disallowance u/s. 14A of the Act, the onus to establish the nexus of the same with exempt income, is on the revenue. In "Wimco Seedlings Limited v DCIT" 107 ITD 267 (Del)(TM) it has been held that M/s. Edelweiss Capital Ltd., there can be no presumption that the assessee must have incurred expenditur…

Sbi Capital Markets Ltd., Mumbai vs. Addl.C.I.T. Ltu, Mumbai

In the result, the 1st, 2nd, 3rd and 4th ground of appeals are partly allowed

ITA 2483/MUM/2012[2008-09]Status: DisposedITAT Mumbai09 Feb 2018AY 2008-09

Bench: Shri D.T. Garasia () & Shri N.K. Pradhan () Assessment Year: 2008-09 & Assessment Year: 2009-10 Sbi Capital Markets Ltd. Addl.Cit Ltu, 202, Maker Tower E, Cuff 29Th Floor Centre-I, Vs. Parade, World Trade Centre, Mumbai-400005 Cuffe Parade, Mumbai-400005 Pan No. Aaacs7914E Appellant Respondent Assessee By : Mr. Rajnikant V. Chaniyari, Ar Revenue By : Mr. V. Justin, Dr Date Of Hearing : 15/11/2017 Date Of Pronouncement : 09/02/2018

For Appellant: Mr. Rajnikant V. Chaniyari, ARFor Respondent: Mr. V. Justin, DR
Section 143(3)Section 14ASection 14A(2)

…No 2483/Mum/2012 & ITA No. 4064/Mum/2013 Mining Ltd. v. DCIT [2016] 67 taxmann.com 260 (Kolkata), (iv) CIT v. Reliance Utilities & Power Ltd. (2009) 313 ITR 340 (Bom. HC), (v) Oswal Industries v. ACIT (2000) 109 Taxman 279 (Mum. ITAT), (vi) Maruti Udyog Ltd. (92 ITD 119) (Del. ITAT), (vii)Hero Cycles Ltd. (323 ITR 518) (P&H HC) and (viii)Bunge Agribusiness (India) (P.) Ltd. v. DCIT 132 ITD 549 (Mumbai ITAT). 5.3 The Ld. counsel finally submits that strategic investments should be excluded while calculating average value of investment. It is stated that investments of Rs.63,96,30,000/- outstanding as on March 31,…

ACIT 3(2)(1), Mumbai vs. Indiabulls Wholsale Services Ltd, Mumbai

ITA 7490/MUM/2016[2012-13]Status: DisposedITAT Mumbai03 Jan 2018AY 2012-13
For Appellant: NoneFor Respondent: Shri Ram Tiwari - DR
Section 143(3)Section 14ASection 254(1)

…the AO had not disputed the fact that the interest fund of the assessee in terms of share capital and reserves were more than the investment made by the assessee. He referred to the cases of Reliance Utilities and Power Ltd. (313 ITR 340), Maruti Udyog Ltd. (92 ITD 119), Hero Cycles Ltd.(323ITR518)and observed that the assessee had made specific claim about not incurring of any expenditure in relation to exempt dividend income, that the AO had applied the provisions of rule 8D without assigning any reason and in mechanical manner, that rule 8D was not automatic, that the AO had to give an objective satisfaction…

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

…-6021/Del/2012 6.3. Reference can also be made to the decisions in Chemical & Mettallurgical Design Co. Ltd : ITA No. 803/2008 (Delhi), CIT Vs Ms. Sushma Kapoor : 319 ITR 299 (Delhi), ACIT v. Eicher Limited: 101 TTJ 369 (Del.) , Maruti Udyog Limited V. DCIT: 92 ITD 119 (Del.), on the aspect of section 14A of the Act, wherein it has been held that without any cogent basis and material on record, no artificial/ ad-hoc disallowance is permissible for expenses incurred by the assessee, and the legal position that emerges from the these decisions is that: (a) there must be some actual expenditure incurred; and (b) su…

M/S Khoday India Limited, Bangalore vs. DCIT, Bangalore

In the result, the appeals of the assessee are partly allowed and the appeals of revenue are dismissed

ITA 1056/BANG/2016[2012-13]Status: DisposedITAT Bangalore24 Oct 2017AY 2012-13

Bench: Shri Vijay Pal Rao & Shri Jason P Boaz

For Appellant: Shri S. Sukumar,AdvocateFor Respondent: Shri M.K. Biju, JCIT (DR) (ITAT)-3, Bengaluru
Section 14A

…s.61,86,76,922 was given from assessee's own fund. Further the investment in shares of Rs.17,16,599 was also from assessee's own fund and not from the borrowed fund. He has relied upon the decision of Delhi Tribunal in the case of Maruti Udyog Limited Vs. CIT 92 ITD 119 and submitted that the burden of proof lies on the person who alleges the existence of fact and if the assessee claimes deduction in respect of any expenditure then onus would be on the assessee to prove that the conditions for its allowbility are satisfied. On the other hand, if the revenue who wants to disallow the expenditure under Section 14A…

DCIT, New Delhi vs. M/S. Oriental Bank of Commerce, Gurgaon

In the result, the appeal of the assessee is dismissed and that of the Revenue is partly allowed for statistical purposes, as indicated above

ITA 5200/DEL/2014[2010-11]Status: DisposedITAT Delhi11 Sept 2017AY 2010-11

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

Section 14ASection 2

…t furnish any reason for not capitalizing the said expenses and charging them to revenue. He, therefore, following CIT v. Aravali Construction Co. Pvt. Ltd. 124 Taxman 146 (Raj) (2002), Maruti Udhyog Ltd. v. DCIT (ITAT, ITA No. 4566 & 5200/Del./2014 10 Del) 92 ITD 119, JCIT v. India Equipment Leasing Ltd. (ITAT, Chennai) 296 ITR (AT) 177 and Amway India Enterprises v. DCIT (ITAT, Del-SB) 111 ITD 112, AO held that the expenditure incurred on acquisition of computer software was to be treated as capital in nature and accordingly, the expenditure of Rs. 9,20,47,969/- was holding the same as capital expenditure. Th…

Oriental Bank of Commerce, Gurgaon vs. Addl. CIT, New Delhi

In the result, the appeal of the assessee is dismissed and that of the Revenue is partly allowed for statistical purposes, as indicated above

ITA 4566/DEL/2014[2010-11]Status: DisposedITAT Delhi11 Sept 2017AY 2010-11

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

Section 14ASection 2

…t furnish any reason for not capitalizing the said expenses and charging them to revenue. He, therefore, following CIT v. Aravali Construction Co. Pvt. Ltd. 124 Taxman 146 (Raj) (2002), Maruti Udhyog Ltd. v. DCIT (ITAT, ITA No. 4566 & 5200/Del./2014 10 Del) 92 ITD 119, JCIT v. India Equipment Leasing Ltd. (ITAT, Chennai) 296 ITR (AT) 177 and Amway India Enterprises v. DCIT (ITAT, Del-SB) 111 ITD 112, AO held that the expenditure incurred on acquisition of computer software was to be treated as capital in nature and accordingly, the expenditure of Rs. 9,20,47,969/- was holding the same as capital expenditure. Th…

DCIT (Ltu), New Delhi vs. M/S Whirlpool of India Ltd., Gurgaon

The appeals of the Revenue are dismissed

ITA 1849/DEL/2010[2002-03]Status: DisposedITAT Delhi20 Feb 2017AY 2002-03

Bench: Shri N. K. Saini & Ms Suchitra Kamble

Section 14ASection 36(1)

…ion 14A does not envisage disallowance to any ad-hoc or an estimated expenditure. It is only en expenditure actually incurred for earning an income exempt from tax that would be disallowed u/s 14A. Reliance of the Ld. AR in case of Maruti Udhyog Ltd. Vs. DCIT 92 ITD 119 & ACIT Vs. Eicher Ltd. 101 TTJ 369 Delhi wherein it was held that the word incurred as used in Section 14A clearly indicates that it must be shown as a fact that some expenditure was in-fact incurred by the assessee to produce exempt income. The register did not empowering the A.O to make an arbitrary estimate of expenditure and disallow the same.…

DCIT (Ltu), New Delhi vs. M/S Whirlpool of India Ltd., New Delhi

The appeals of the Revenue are dismissed

ITA 2285/DEL/2009[2001-02]Status: DisposedITAT Delhi20 Feb 2017AY 2001-02

Bench: Shri N. K. Saini & Ms Suchitra Kamble

Section 14ASection 36(1)

…ion 14A does not envisage disallowance to any ad-hoc or an estimated expenditure. It is only en expenditure actually incurred for earning an income exempt from tax that would be disallowed u/s 14A. Reliance of the Ld. AR in case of Maruti Udhyog Ltd. Vs. DCIT 92 ITD 119 & ACIT Vs. Eicher Ltd. 101 TTJ 369 Delhi wherein it was held that the word incurred as used in Section 14A clearly indicates that it must be shown as a fact that some expenditure was in-fact incurred by the assessee to produce exempt income. The register did not empowering the A.O to make an arbitrary estimate of expenditure and disallow the same.…

Aishwarya Rai Bachchan, Mumbai vs. DCIT Cen Cir 2, Mumbai

In the result, appeals of the Revenue are dismissed, whereas appeal of assessee is allowed for statistical purposes

ITA 3873/MUM/2013[2004-05]Status: DisposedITAT Mumbai18 Jan 2017AY 2004-05

Bench: Shri R.C.Sharma, Am & Shri Ravish Sood, Jm

Section 143(1)Section 143(2)Section 143(3)Section 154Section 220(2)Section 44ASection 80RSection 90Section 94(7)

…as held that the burden is on the AO to establish nexus of expenses incurred with the earning of exempt income, before making any disallowance u/s. 14A of IT Act. 19 ITA Nos._3791,3795,3796,3814-3816/2013 Ms. Aishwarya Rai Bachchan xii. "Maruti Udyog v. DCIT 92 ITD 119 (Del.], it has been held that before making any disallowance u/s. 14A of the Act, the onus to establish the nexus of the same with the exempt income, is on the revenue. DCIT vs. Jindal Photo Ltd. (Delhi ITAT)' For s. 14A disallowance, even under Rule 8D, onus on AO to show nexus between expenditure & tax-free income In AY 2007-08 the assessee earn…

DCIT CC 2, Mumbai vs. Aishwarya Rai Bachchan, Mumbai

In the result, appeals of the Revenue are dismissed, whereas appeal of assessee is allowed for statistical purposes

ITA 3816/MUM/2013[2009-10]Status: DisposedITAT Mumbai18 Jan 2017AY 2009-10

Bench: Shri R.C.Sharma, Am & Shri Ravish Sood, Jm

Section 143(1)Section 143(2)Section 143(3)Section 154Section 220(2)Section 44ASection 80RSection 90Section 94(7)

…as held that the burden is on the AO to establish nexus of expenses incurred with the earning of exempt income, before making any disallowance u/s. 14A of IT Act. 19 ITA Nos._3791,3795,3796,3814-3816/2013 Ms. Aishwarya Rai Bachchan xii. "Maruti Udyog v. DCIT 92 ITD 119 (Del.], it has been held that before making any disallowance u/s. 14A of the Act, the onus to establish the nexus of the same with the exempt income, is on the revenue. DCIT vs. Jindal Photo Ltd. (Delhi ITAT)' For s. 14A disallowance, even under Rule 8D, onus on AO to show nexus between expenditure & tax-free income In AY 2007-08 the assessee earn…

DCIT CC 2, Mumbai vs. Aishwarya Rai Bachchan, Mumbai

In the result, appeals of the Revenue are dismissed, whereas appeal of assessee is allowed for statistical purposes

ITA 3815/MUM/2013[2007-08]Status: DisposedITAT Mumbai18 Jan 2017AY 2007-08

Bench: Shri R.C.Sharma, Am & Shri Ravish Sood, Jm

Section 143(1)Section 143(2)Section 143(3)Section 154Section 220(2)Section 44ASection 80RSection 90Section 94(7)

…as held that the burden is on the AO to establish nexus of expenses incurred with the earning of exempt income, before making any disallowance u/s. 14A of IT Act. 19 ITA Nos._3791,3795,3796,3814-3816/2013 Ms. Aishwarya Rai Bachchan xii. "Maruti Udyog v. DCIT 92 ITD 119 (Del.], it has been held that before making any disallowance u/s. 14A of the Act, the onus to establish the nexus of the same with the exempt income, is on the revenue. DCIT vs. Jindal Photo Ltd. (Delhi ITAT)' For s. 14A disallowance, even under Rule 8D, onus on AO to show nexus between expenditure & tax-free income In AY 2007-08 the assessee earn…

DCIT CC 2, Mumbai vs. Aishwarya Rai Bachchan, Mumbai

In the result, appeals of the Revenue are dismissed, whereas appeal of assessee is allowed for statistical purposes

ITA 3814/MUM/2013[2008-09]Status: DisposedITAT Mumbai18 Jan 2017AY 2008-09

Bench: Shri R.C.Sharma, Am & Shri Ravish Sood, Jm

Section 143(1)Section 143(2)Section 143(3)Section 154Section 220(2)Section 44ASection 80RSection 90Section 94(7)

…as held that the burden is on the AO to establish nexus of expenses incurred with the earning of exempt income, before making any disallowance u/s. 14A of IT Act. 19 ITA Nos._3791,3795,3796,3814-3816/2013 Ms. Aishwarya Rai Bachchan xii. "Maruti Udyog v. DCIT 92 ITD 119 (Del.], it has been held that before making any disallowance u/s. 14A of the Act, the onus to establish the nexus of the same with the exempt income, is on the revenue. DCIT vs. Jindal Photo Ltd. (Delhi ITAT)' For s. 14A disallowance, even under Rule 8D, onus on AO to show nexus between expenditure & tax-free income In AY 2007-08 the assessee earn…

DCIT CC 2, Mumbai vs. Aishwarya Rai Bachchan, Mumbai

In the result, appeals of the Revenue are dismissed, whereas appeal of assessee is allowed for statistical purposes

ITA 3796/MUM/2013[2005-06]Status: DisposedITAT Mumbai18 Jan 2017AY 2005-06

Bench: Shri R.C.Sharma, Am & Shri Ravish Sood, Jm

Section 143(1)Section 143(2)Section 143(3)Section 154Section 220(2)Section 44ASection 80RSection 90Section 94(7)

…as held that the burden is on the AO to establish nexus of expenses incurred with the earning of exempt income, before making any disallowance u/s. 14A of IT Act. 19 ITA Nos._3791,3795,3796,3814-3816/2013 Ms. Aishwarya Rai Bachchan xii. "Maruti Udyog v. DCIT 92 ITD 119 (Del.], it has been held that before making any disallowance u/s. 14A of the Act, the onus to establish the nexus of the same with the exempt income, is on the revenue. DCIT vs. Jindal Photo Ltd. (Delhi ITAT)' For s. 14A disallowance, even under Rule 8D, onus on AO to show nexus between expenditure & tax-free income In AY 2007-08 the assessee earn…

DCIT Cen Cir 2, Mumbai vs. Aishwarya Rai Bachchan, Mumbai

In the result, appeals of the Revenue are dismissed, whereas appeal of assessee is allowed for statistical purposes

ITA 3795/MUM/2013[2006-07]Status: DisposedITAT Mumbai18 Jan 2017AY 2006-07

Bench: Shri R.C.Sharma, Am & Shri Ravish Sood, Jm

Section 143(1)Section 143(2)Section 143(3)Section 154Section 220(2)Section 44ASection 80RSection 90Section 94(7)

…as held that the burden is on the AO to establish nexus of expenses incurred with the earning of exempt income, before making any disallowance u/s. 14A of IT Act. 19 ITA Nos._3791,3795,3796,3814-3816/2013 Ms. Aishwarya Rai Bachchan xii. "Maruti Udyog v. DCIT 92 ITD 119 (Del.], it has been held that before making any disallowance u/s. 14A of the Act, the onus to establish the nexus of the same with the exempt income, is on the revenue. DCIT vs. Jindal Photo Ltd. (Delhi ITAT)' For s. 14A disallowance, even under Rule 8D, onus on AO to show nexus between expenditure & tax-free income In AY 2007-08 the assessee earn…

DCIT CC 2, Mumbai vs. Aishwarya Rai Bachchan, Mumbai

In the result, appeals of the Revenue are dismissed, whereas appeal of assessee is allowed for statistical purposes

ITA 3791/MUM/2013[2004-05]Status: DisposedITAT Mumbai18 Jan 2017AY 2004-05

Bench: Shri R.C.Sharma, Am & Shri Ravish Sood, Jm

Section 143(1)Section 143(2)Section 143(3)Section 154Section 220(2)Section 44ASection 80RSection 90Section 94(7)

…as held that the burden is on the AO to establish nexus of expenses incurred with the earning of exempt income, before making any disallowance u/s. 14A of IT Act. 19 ITA Nos._3791,3795,3796,3814-3816/2013 Ms. Aishwarya Rai Bachchan xii. "Maruti Udyog v. DCIT 92 ITD 119 (Del.], it has been held that before making any disallowance u/s. 14A of the Act, the onus to establish the nexus of the same with the exempt income, is on the revenue. DCIT vs. Jindal Photo Ltd. (Delhi ITAT)' For s. 14A disallowance, even under Rule 8D, onus on AO to show nexus between expenditure & tax-free income In AY 2007-08 the assessee earn…

DCIT (Ltu), New Delhi vs. M/S. Exl Service.Com (India) Pvt. Ltd., New Delhi

In the result, the appeal by the assessee as well as ofthe department are partly allowed for statistical purposes

ITA 615/DEL/2015[2010-11]Status: DisposedITAT Delhi03 Jan 2017AY 2010-11

Bench: Sh. N. K. Saini, Am & Sh. Kuldip Singh, Jm Ita No. 302/Del/2015 : Asstt. Year : 2010-11 Exl Service.Com (India) Pvt. Ltd., Vs Deputy Commissioner Of Income 414, 4Th Floor, Dlf Jasola, Tax, Large Tax Payer Unit, Tower-B, Plot No. 10 & 11, Dda New Delhi District Centre, Jasola, New Delhi-110044 (Appellant) (Respondent) Ita No. 615/Del/2015 : Asstt. Year : 2010-11 Deputy Commissioner Of Income Vs Exl Service.Com (India) Pvt. Ltd., 414, 4Th Floor, Dlf Jasola, Tower- Tax, Circle-1 (Ltu), New Delhi-110017 B, Plot No. 10 & 11, Dda District Centre, Jasola, New Delhi-110044 (Appellant) (Respondent) Pan No. Aaace5174C Assessee By : Sh. Ajay Vohra, Adv. Sh. Abhishek Agarwal, Adv. Revenue By : Sh. Piyush Jain, Cit Dr Date Of Hearing : 07.10.2017 Date Of Pronouncement : 03.01.2017 Order Per N. K. Saini, Am:

For Appellant: Sh. Ajay Vohra, AdvFor Respondent: Sh. Piyush Jain, CIT DR
Section 143(3)Section 92D

…" CIT Vs Walfort Share & Stock Brokers 326 ITR 1 (SC) " Maxopp Investment Ltd. Vs CIT 347 ITR 272 (Del.) " Minda Investments Ltd. Vs DCIT 138 TTJ 240 (Del. Trib.) " Bunge Agribusiness India P. Ltd. Vs DCIT 132 ITD 549 (Del. Trib.) " Maruti Udyog Ltd. Vs DCIT 92 ITD 119 (Del. Trib.) 32. It was further submitted that the artificial/ad-hoc disallowance u/s 14A of the Act is not permissible without any cogent basis and material on record. The reliance was placed on the following case laws: " Godrej & Boyce Mfg. Co. Ltd., Mumbai Vs DCIT 328 ITR 81 (Bom.) " Chemical & Metallurgical Design Co. Ltd. in ITA No. 803/2008…

Exl Service.Com (India) Pvt. Ltd., New Delhi vs. DCIT (Ltu), New Delhi

In the result, the appeal by the assessee as well as ofthe department are partly allowed for statistical purposes

ITA 302/DEL/2015[2010-11]Status: DisposedITAT Delhi03 Jan 2017AY 2010-11

Bench: Sh. N. K. Saini, Am & Sh. Kuldip Singh, Jm Ita No. 302/Del/2015 : Asstt. Year : 2010-11 Exl Service.Com (India) Pvt. Ltd., Vs Deputy Commissioner Of Income 414, 4Th Floor, Dlf Jasola, Tax, Large Tax Payer Unit, Tower-B, Plot No. 10 & 11, Dda New Delhi District Centre, Jasola, New Delhi-110044 (Appellant) (Respondent) Ita No. 615/Del/2015 : Asstt. Year : 2010-11 Deputy Commissioner Of Income Vs Exl Service.Com (India) Pvt. Ltd., 414, 4Th Floor, Dlf Jasola, Tower- Tax, Circle-1 (Ltu), New Delhi-110017 B, Plot No. 10 & 11, Dda District Centre, Jasola, New Delhi-110044 (Appellant) (Respondent) Pan No. Aaace5174C Assessee By : Sh. Ajay Vohra, Adv. Sh. Abhishek Agarwal, Adv. Revenue By : Sh. Piyush Jain, Cit Dr Date Of Hearing : 07.10.2017 Date Of Pronouncement : 03.01.2017 Order Per N. K. Saini, Am:

For Appellant: Sh. Ajay Vohra, AdvFor Respondent: Sh. Piyush Jain, CIT DR
Section 143(3)Section 92D

…" CIT Vs Walfort Share & Stock Brokers 326 ITR 1 (SC) " Maxopp Investment Ltd. Vs CIT 347 ITR 272 (Del.) " Minda Investments Ltd. Vs DCIT 138 TTJ 240 (Del. Trib.) " Bunge Agribusiness India P. Ltd. Vs DCIT 132 ITD 549 (Del. Trib.) " Maruti Udyog Ltd. Vs DCIT 92 ITD 119 (Del. Trib.) 32. It was further submitted that the artificial/ad-hoc disallowance u/s 14A of the Act is not permissible without any cogent basis and material on record. The reliance was placed on the following case laws: " Godrej & Boyce Mfg. Co. Ltd., Mumbai Vs DCIT 328 ITR 81 (Bom.) " Chemical & Metallurgical Design Co. Ltd. in ITA No. 803/2008…

M/S. Oriental Bank of Commerce, Gurgaon vs. Addl.CIT, New Delhi

In the result, both the appeals of the assessee and both the appeals of

ITA 6795/DEL/2013[2008-09]Status: DisposedITAT Delhi27 Dec 2016AY 2008-09

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

For Appellant: Sh. KVSR Krishna, CAFor Respondent: Smt. Anupama Anand, CIT/DR
Section 14A

…m 28 held that purchase of software whose life was more than 2 years, was capital in nature. Hon'ble Rajasthan High court in CIT v. Aravali Construction Co. Pvt. Ltd. 124 Taxman 146 (Raj)(2002) and Hon'ble ITAT, Delhi in Maruti Udhyog Ltd. v. DCIT (ITAT, Del) 92 ITD 119 held that expenditure incurred in relation to acquisition of computer software was to be treated as capital in nature. 5.4.5 In view of the above, I am of the opinion that all the expenses incurred on computer software except AMC is to be treated as Capital in nature. In the case of AMC, because it is specific that the contract is for one year, th…

M/S. Dell International Services India (P) Ltd., Noida vs. Addl. CIT, New Delhi

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

ITA 5522/DEL/2011[2007-08]Status: DisposedITAT Delhi08 Aug 2016AY 2007-08

Bench: Sh. N. K. Saini, Am & Smt. Beena Pillai, Jm Ita No. 5522/Del/2011 : Asstt. Year : 2007-08 M/S Dell International Services Vs Deputy Commissioner Of Income India Pvt. Ltd., (Formerly Known As Tax, Circle-14(1), Room No. 415, Perot Systems Tsi (India) Pvt. Central Revenue Building, Ltd.), Plot No. 3, Sector-125, New Delhi Noida-201301 (Appellant) (Respondent) Pan No. Aaach1925Q Assessee By : Sh. Vishal Kalra, Adv. & Sh. S. S. Tomar, Adv. & Sh. G. Gupta, Adv. Revenue By : Sh. N. C. Swain, Cit Dr Date Of Hearing : 02.08.2016 Date Of Pronouncement : 08.08.2016 Order Per N. K. Saini, Am:

For Appellant: Sh. Vishal Kalra, Adv. & Sh. S. SFor Respondent: Sh. N. C. Swain, CIT DR
Section 10(34)Section 10ASection 143(1)Section 143(3)Section 14ASection 234D

…laced on the following case laws: 5 Dell International Services Pvt. Ltd. " Impulse India Pvt. Ltd. Vs ACIT 22 SOT 368 (ITAT Del.) " ACIT VS Eicher Ltd. 101 TTJ 369 (ITAT Del.) " Wimco Seedings Ltd. Vs DCIT 107 ITD 267 (ITAT Del.) " Maruti Udyog Ltd. Vs DCIT 92 ITD 119 (ITAT Del.) " CIT Vs Hero Cycles Ltd. 189 Taxman 50 (P&H) The AO did not find merit in the submissions of the assessee. 7. The assessee also raised the objection before the ld. DRP and submitted that the assessee had not incurred any expenditure to earn this income. Therefore, the AO was not justified in disallowing any sum u/s 14A of the Act. It…