Otis Elevator Co. (India) Ltd. v. CIT

Bennett Coleman & Company Limited, Mumbai vs. Asst. CIT 1(1)(1), Mumbai

In the result assessee appeal is allowed and revenue appeal is dismissed

Bench: Shri Shamim Yahya & Shri Pavan Kumar Gadalem/S. Bennett Coleman Vs. Acit – 1(1)(1) & Company Ltd., 5Th Floor, Aaykar The Times Of India Bhavan, Churchgate, Bldg, Dn Road, Fort, Mumbai – 400020. Mumbai – 400001. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacb4373Q Appellant .. Respondent Dcit – 1(1)(1) Vs. M/S. Bennett Coleman 5Th Floor, Aaykar & Company Ltd., Bhavan, Churchgate, The Times Of India Mumbai – 400020. Bldg, Dn Road, Fort, Mumbai – 400001. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacb4373Q Appellant/Respondent .. Respondent/Appellant Appellant/Respondent Shri Srinivasan By : Venkataraman.Ar Respondent/Appellant Shri. K.C. Selvamani. Dr By : Date Of Hearing 23.08.2021 Date Of Pronouncement 15.11.2021 आदेश / O R D E R Per Pavan Kumar Gadale Jm:

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER M/s. Bennett Coleman Vs. ACIT – 1(1)(1) & Company Ltd., 5th Floor, Aaykar The Times of India Bhavan, Churchgate, Bldg, DN Road, Fort, Mumbai – 400020. Mumbai – 400001. "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAACB4373Q Appellant .. Respondent DCIT – 1(1)(1) Vs. M/s. Bennett Coleman 5th Floor, Aaykar & Company Ltd., Bhavan, Churchgate, The Times of India Mumbai – 400020. Bldg, DN Road, Fort, Mumbai – 400001. "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAACB4373Q Appellant/Resp…

Il & Fs Transportation Networks Ltd., Mumbai vs. Addl.CIT-14(2) (Earlier Addl.CIT, RG. 10(1)), Mumbai

Bench: Shri S. Rifaur Rahman & Shri Ravish Soodita Nos.2927 & 2928/Mum/2018 (Assessment Years: 2010-11 & 2011-12) Il & Fs Transportation Networks Addl. Commissioner Of Limited, The Il & Fs Financial Income-Tax, Range -14(2), Center, Plot No.C-22, Room No. [Earlier Addl. Commissioner Of Income-Tax Vs. Range-10(1), Mumbai] 460, 4Th Floor, G Block, Bandra- Aaykar Bhavan, Maharshi Karve Kurla Complex, Bandra (E), Road, Marine Lines, Mumbai – 400 051 Mumbai – 400 020 Pan – Aabcc5460A (Appellant) (Respondent)

…length on the aforesaid issue, and find, that the issue pertaining to allowability of club expense as a revenue expenditure is squarely covered by the Judgment of the Hon’ble High Court of Bombay in the case of Otis Elevator Company India Ltd. Vs. CIT (1992) 195 ITR 682 (Bom). In the said case, the Hon‟ble High Court had approved the view taken by the Tribunal that the payment of club membership is allowable as a revenue expenditure. Also, we find, that a similar view had been arrived at by ITA Nos.2927 & 2928, 3145 & 3146/Mum/2018, A.Ys. 2010-11 & 2011-12 IL & FS Transportation Networks Limited Vs. Addl. CIT, R…

Tata International Ltd, Mumbai vs. Addl CIT 7(3), Mumbai

In the result, Ground No. 6 to 9 (additional ground) of

Bench: Shri Pawan Singh & Shri S. Rifaur Rahmantata International Limited, Acit-7(3), Room No. 675, 6Th Floor, Block A, Shivsagar Estates, Dr. Annie Besant Road, Worli, Vs. Aayakar Bhavan, M.K. Road, Mumbai-400018 Mumbai-400020 Pan: Aaact3198F Appellant Respondent Acit-7(3), Tata International Limited, Room No. 675, 6Th Floor, Block A, Shivsagar Estates, Vs. Dr. Annie Besant Road, Worli, Aayakar Bhavan, M.K. Road, Mumbai-400018 Mumbai-400020 Pan: Aaact3198F Appellant Respondent Cross Objection No. 223/Mum/2013 In Ita No. 4451/Mum/2010 Tata International Limited, Acit-7(3), Room No. 675, 6Th Floor, Block A, Shivsagar Estates, Dr. Annie Besant Road, Worli, Vs. Aayakar Bhavan, M.K. Road, Mumbai-400018 Mumbai-400020 Pan: Aaact3198F Appellant Respondent Appellant By : Shri P.J. Pardiwala, Shri Nitesh Joshi, Shri Milin Thakore & Ms. Astha Shah (Ar) Respondent By : Shri A. Mohan (Cit- Dr)

…appeal is allowed. 13. Ground no.2 relates to disallowance out of payment made to club. The ld. AR of the assessee submits that this ground of appeal is also covered by Hon’ble Bombay High Court and decision of various benches of Tribunal in Otis Elevator (195 ITR 682). The ld. AR of the assessee submits that the assessee claimed total expenses of Rs. 3,52,200/- out of which, the 8 ITA No. 4376, 4451 Mum 2010 & C.O. No. 223 Mum 2013-Tata International Limited. Assessing Officer allowed Rs. 52,000/- paid to Devas Office and rest of the amount of Rs. 2,99,500/- for subscription fees, annual contribution and me…

M/S Nicholas Piramal India Ltd vs. Addlcit RG - 7(1)

Bench: Shri Rajesh Kumar & Shri Ravish Soodm/S Nicholas Piramal India Ltd. Addl. Commissioner Of Piramal Healthcare Ltd. Income - Tax Range-7(1), (Earlier Known As Nicholas Piramal India Ltd), Mumbai 4Th Floor, Piramal Tower Annexe, Vs. Ganpatrao Kadam Marg, Lower Parel (W), Mumbai – 400013 Pan – Aaacn4538P (Appellant) (Respondent) D.C.I.T, Circle-7 (1), M/S Nicholas Piramal India Ltd. 452, Aayakar Bhavan, M.K. Marg, Piramal Healthcare Ltd. Mumbai. 4Th Floor, Piramal Tower Annexe, Vs. Ganpatrao Kadam Marg, Lower Parel (W), Mumbai – 400013

…f club membership fees of Rs. 3,03,500/-, the CIT(A) taking cognizance of the fact that the issue was squarely covered in favour of the assessee by the judgment of the Hon‟ble High Court of Bombay in the case of Otis Elevator Company India Ltd. Vs. CIT (1992) 195 ITR 682 (Bom), directed the A.O to vacate the said disallowance. On the issue pertaining to the raising of the value of the „Closing stock‟ by an amount of Rs. 45,58,000/- on account of MODVAT, the CIT(A) not finding favour with the contentions advanced by the assessee upheld the said disallowance. As regards the claim of the assessee that the A.O had er…

Shailender Mayank Hemchand, Mumbai vs. ACIT 19(3), Mumbai

Bench: Shri S. Rifaur Rahman, Am & Shri Ravish Sood, Jm आयकरअपीलसं./ I.T.A. No. 5352/Mum/2018 (निर्धारणवर्ा / Assessment Year: 2014-15)

…A LTD. [1999] 239 ITR 237 (Delhi), CIT v. NESTLE INDIA LTD. [2008] 296 ITR 682 (Delhi), GUJARAT STATE EXPORT CORPORATION LTD. v. CIT [1994] 209 ITR 649 (Guj), CIT v. SAMTEL COLOR LTD. [2010] 326 ITR 425 (Delhi) and OTIS ELEVATOR Co. (INDIA) LTD. v. CIT [1992] 195 ITR 682 (Bom) approved. 10. In the present case, assessee has taken permanent membership of CCI Club and assessee is allowed to use the facility of the club and it can never create any capital assets. As the assessee can only utilize the facility and in case, he decides to surrender the membership, he will not get any refund. Therefore, assessee does no…

Infrastructure Leasing & Financial Services Ltd, Mumbai vs. DCIT 10(1), Mumbai

In the result, appeals of the assessee as well as revenue are partly allowed as indicated above

Bench: Shri C.N. Prasad, Hon'Ble & Shri G. Manjunatha, Hon'Ble

…ion of Hon’ble Bombay High Court in asessee’s own case for AY 1997-98 in Income Tax Appeal No.2402 of 2013 where under identical set of facts, the Hon’ble High Court by following its earlier decision in the case of Otis Elevator Co. (India) Ltd. vs CIT (1992) 195 ITR 682 (Bom.) held that Club membership fee paid to the club is in the nature of revenue expenditure, which is allowable as deduction. 70. Having heard both sides and considered the material available on record, we find that Hon’ble Bombay High Court has considered an identical question of law in assessee’s own case for AY 1997-98 and by following its e…

Infrastructure Leasing & Financial Services Ltd, Mumbai vs. DCIT 10(1), Mumbai

In the result, appeals of the assessee as well as revenue are partly allowed as indicated above

Bench: Shri C.N. Prasad, Hon'Ble & Shri G. Manjunatha, Hon'Ble

…ion of Hon’ble Bombay High Court in asessee’s own case for AY 1997-98 in Income Tax Appeal No.2402 of 2013 where under identical set of facts, the Hon’ble High Court by following its earlier decision in the case of Otis Elevator Co. (India) Ltd. vs CIT (1992) 195 ITR 682 (Bom.) held that Club membership fee paid to the club is in the nature of revenue expenditure, which is allowable as deduction. 70. Having heard both sides and considered the material available on record, we find that Hon’ble Bombay High Court has considered an identical question of law in assessee’s own case for AY 1997-98 and by following its e…

DCIT 10(1), Mumbai vs. Infrastructure Leasing & Financial Services Ltd, Mumbai

In the result, appeals of the assessee as well as revenue are partly allowed as indicated above

Bench: Shri C.N. Prasad, Hon'Ble & Shri G. Manjunatha, Hon'Ble

…ion of Hon’ble Bombay High Court in asessee’s own case for AY 1997-98 in Income Tax Appeal No.2402 of 2013 where under identical set of facts, the Hon’ble High Court by following its earlier decision in the case of Otis Elevator Co. (India) Ltd. vs CIT (1992) 195 ITR 682 (Bom.) held that Club membership fee paid to the club is in the nature of revenue expenditure, which is allowable as deduction. 70. Having heard both sides and considered the material available on record, we find that Hon’ble Bombay High Court has considered an identical question of law in assessee’s own case for AY 1997-98 and by following its e…

Infrastructure Leasing & Financial Services Ltd, Mumbai vs. Asst CIT 10(1), Mumbai

In the result, appeals of the assessee as well as revenue are partly allowed as indicated above

Bench: Shri C.N. Prasad, Hon'Ble & Shri G. Manjunatha, Hon'Ble

…ion of Hon’ble Bombay High Court in asessee’s own case for AY 1997-98 in Income Tax Appeal No.2402 of 2013 where under identical set of facts, the Hon’ble High Court by following its earlier decision in the case of Otis Elevator Co. (India) Ltd. vs CIT (1992) 195 ITR 682 (Bom.) held that Club membership fee paid to the club is in the nature of revenue expenditure, which is allowable as deduction. 70. Having heard both sides and considered the material available on record, we find that Hon’ble Bombay High Court has considered an identical question of law in assessee’s own case for AY 1997-98 and by following its e…

Infrastructure Leasing & Financial Services Ltd, Mumbai vs. Asst CIT 10(1), Mumbai

In the result, appeals of the assessee as well as revenue are partly allowed as indicated above

Bench: Shri C.N. Prasad, Hon'Ble & Shri G. Manjunatha, Hon'Ble

…ion of Hon’ble Bombay High Court in asessee’s own case for AY 1997-98 in Income Tax Appeal No.2402 of 2013 where under identical set of facts, the Hon’ble High Court by following its earlier decision in the case of Otis Elevator Co. (India) Ltd. vs CIT (1992) 195 ITR 682 (Bom.) held that Club membership fee paid to the club is in the nature of revenue expenditure, which is allowable as deduction. 70. Having heard both sides and considered the material available on record, we find that Hon’ble Bombay High Court has considered an identical question of law in assessee’s own case for AY 1997-98 and by following its e…

DCIT 10(1), Mumbai vs. Infrastructure Leasing & Financial Services Ltd, Mumbai

In the result, appeals of the assessee as well as revenue are partly allowed as indicated above

Bench: Shri C.N. Prasad, Hon'Ble & Shri G. Manjunatha, Hon'Ble

…ion of Hon’ble Bombay High Court in asessee’s own case for AY 1997-98 in Income Tax Appeal No.2402 of 2013 where under identical set of facts, the Hon’ble High Court by following its earlier decision in the case of Otis Elevator Co. (India) Ltd. vs CIT (1992) 195 ITR 682 (Bom.) held that Club membership fee paid to the club is in the nature of revenue expenditure, which is allowable as deduction. 70. Having heard both sides and considered the material available on record, we find that Hon’ble Bombay High Court has considered an identical question of law in assessee’s own case for AY 1997-98 and by following its e…

DCIT 10(1), Mumbai vs. Infrastructure Leasing & Financial Services Ltd, Mumbai

In the result, appeals of the assessee as well as revenue are partly allowed as indicated above

Bench: Shri C.N. Prasad, Hon'Ble & Shri G. Manjunatha, Hon'Ble

…ion of Hon’ble Bombay High Court in asessee’s own case for AY 1997-98 in Income Tax Appeal No.2402 of 2013 where under identical set of facts, the Hon’ble High Court by following its earlier decision in the case of Otis Elevator Co. (India) Ltd. vs CIT (1992) 195 ITR 682 (Bom.) held that Club membership fee paid to the club is in the nature of revenue expenditure, which is allowable as deduction. 70. Having heard both sides and considered the material available on record, we find that Hon’ble Bombay High Court has considered an identical question of law in assessee’s own case for AY 1997-98 and by following its e…

The Hongkong & Shanghai Banking Corporation Ltd, Navi Mumbai vs. ADIT (It) RG-3(1), Mumbai

In the result, appeal filed by the assessee is partly allowed and appeal filed by the revenue is dismissed

Bench: Shri M.Balaganesh, Am & Shri Ravish Sood, Jm & Adit (It) 3(1) Vs. The Hongkong & Scindia House, Shanghai Banking R.No.132, 1St Floor Corporation Ltd N.M.Road, 52/60, Mahatma Gandhi Mumbai – 38 Road Mumbai – 400 001 Pan/Gir No. Aaact2786P (Appellant) .. (Respondent) & The Hongkong & Vs. Adit (It) 3(1) Shanghai Banking Scindia House, R.No.132, 1St Floor Corporation Ltd 52/60, Mahatma Gandhi N.M.Road, Road Mumbai – 38 Mumbai – 400 001 Pan/Gir No. Aaact2786P (Appellant) .. (Respondent)

…Fees - Rs.41,95,000/- Other Payments - Rs.16,96,047/- ----------------- Total Rs.84,83,457/- ======== 6.2. The ld. CIT(A) by placing reliance on the decision of the Hon’ble Jurisdictional High Court in the case of OTIS Elevators Company India Ltd. reported in 195 ITR 682 held that membership, subscription and entrance fees are business expenditure and accordingly directed the ld. AO to allow the deduction for the same. With regard to other payments made to clubs in the sum of Rs.16,96,047/-, the ld. CIT(A) reduced the estimated disallowance to 20% thereon. 6.3. Aggrieved, both assessee as well as revenue are in…

Shree Ahuja Properties P. Ltd., Mumbai vs. ITO WD, 9 (3)(1), Mumbai

In the result, appeal of the assessee is allowed

Bench: Shri Pramod Kumar, Vice- & Shri Pawan Singh

…jects. For the expenses 4 ITA No. 2699, 5161 & 4987 Mum 2016-Shree Ahuja Properties P. Ltd. incurred on member ship of Club, the ld. AR of the assessee relied upon the decision of Hon’ble Bombay High Court in case of Otis Elevator Co. (India) Ltd. Vs CIT (195 ITR 682 Bom). 6. On the other hand, the ld. Departmental Representative (DR) for the revenue relied upon the order of lower authorities. The ld. DR for the revenue further submits that the assessee failed to substantiate that assessee incurred expenses wholly and exclusively for the purpose of business. 7. We have considered the rival submission of the p…

Firstsource Solutions Ltd, Mumbai vs. DCIT Cir 5(2), Mumbai

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

Bench: Shri M.Balaganesh, Am & Shri Amarjit Singh, Jm M/S. Firstsource Solutions Ltd. Vs. The Deputy Commissioner 5Th Floor, Paradigm B Of Income Tax, Circle- 5(2) Mind Space, New Link Road Aayakar Bhavan, Malad (W) Maharshi Karve Road, Mumbai – 400 064 Mumbai – 400 020 Pan/Gir No.Aaaci8904N (Appellant) .. (Respondent)

…the Ground No. 3 raised by the revenue is dismissed.” 3 M/s. Firstsource Solutions Ltd., 2.2. We find that the issue is also covered by the decision of Hon’ble Jurisdictional High Court in the case of Otis Elevator Co. (India) Ltd vs CIT reported in (1992) 195 ITR 682 (Bom). Respectfully following the said decisions, we hold that the expenses incurred for corporate membership of club in the sum of Rs 6,61,000/- is incurred wholly and exclusively for the purpose of business of the assessee company and is squarely allowable as deduction. Accordingly, the Ground No.1 raised by the assessee is allowed. 3. The nex…