Punjab State Industrial Development Corporation Ltd. v. CIT

225 ITR 792Supreme Court of India1997#620 most cited

What is Punjab State Industrial Development Corporation Ltd. v. CIT authority for?

Expenditure incurred for increasing a company's share capital, such as expenses related to issuing shares or an initial public offering (IPO), is capital expenditure. Such expenses are not allowable as a revenue deduction under Section 37, even if they incidentally benefit the business, because they result in an increase in capital.

158

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2006 to 2026.

Also referred to as

Punjab State Industrial Development Corporation Ltd. v. CIT · 225 ITR 792 · Section 37 · Section 37(1) · capital expenditure · revenue expenditure · issue of shares · IPO expenses · increase in share capital · allowability of deduction · business expenditure

Also reported as

93 Taxmann 5

Sections most often in play

Section 37(1)Section 143(3)Section 14ASection 35DSection 10BSection 43(5)Section 37Section 36(1)(iii)

Issues it is cited on

section 35denduring benefitsection 35revenue expendituredisallowance under section 14acapital expenditureput to usesection 45fair market valuemercantile system of accountingsection 37(1)section 37

Judgments citing Punjab State Industrial Development Corporation Ltd. v. CIT

M/S. Vbhc Value Homes Private Limited, Bangalore vs. Income Tax Officer, Ward - 7(1)(3), Bangalore

In the result, appeal of the assessee for Assessment Year 2016-17 is partly allowed in the terms indicated above

ITA 2541/BANG/2019[2015-16]Status: DisposedITAT Bangalore12 Jun 2020AY 2015-16

Bench: Shri A. K. Garodia & Smt. Beena Pillaiappeal No. & Appellant Respondent Assessment Year M/S. Vbhc Value Homes Pvt. Ltd., Income Tax Officer, 2015-16 74-75 Millers Road, Vasanthnagar, Ward – 7(1)(3), Bengaluru – 560 052. Bengaluru. Pan : Aaccv 7868 G The Assistant Commissioner 2016-17 -Do- Of Income Tax, Ward – 7(1)(2), Bengaluru. S.P. No. & Appellant Respondent Assessment Year 29/Bang/2020 M/S. Vbhc Value Homes Income Tax Officer, 2015-16 Pvt. Ltd., Ward – 7(1)(3), (In Ita No.2541/Bang/2019) Pan : Aaccv 7868 G Bengaluru. 59/Bang/2020 -Do- The Assistant Commissioner 2016-17 Of Income Tax, (In Ita No. 37/Bang/2020) Ward – 7(1)(2), Bengaluru. Assessee/S.P. By : Shri. S. Ramasubramanian, Ca Revenue By : Ms. Neera Malhotra, Cit(Dr)(Itat), Bengaluru Date Of Hearing : 10/06/2020 Date Of Pronouncement : 12/06/2020 O R D E R Per A. K. Garodia

For Respondent: Ms. Neera Malhotra, CIT(DR)(ITAT), Bengaluru
Section 14ASection 56(2)

…issue against the assessee, by following the judgment of Hon’ble Apex Court Brooke rendered in the case of Bond India Limited Vs. CIT as reported in 225 ITR 798 and also judgment of Hon’ble Apex Court rendered in the case of PSIDC Ltd., Vs. CIT as reported in 225 ITR 792 (SC). He drew our attention to page 5 of additional evidence 1 filed before Tribunal and it was pointed out that this is an agreement dated 14.11.2014 between the assessee and M/s. Avendus Capital Pvt. Ltd., and in particular, our attention was drawn to the scope of work for M/s. Avendus Capital Pvt. Ltd., noted in para 4 of this agreement. He pl…

DCIT, Circle - 4(1), Kolkata vs. M/S. Andrew Yule & Co. Ltd., Kolkata

In the result, the appeal of the revenue is treated as partly allowed for statistical purpose

ITA 525/KOL/2019[2005-06]Status: DisposedITAT Kolkata22 May 2020AY 2005-06

Bench: Shri P.M. Jagtap, Vice- & Shri S.S. Viswanethra Ravi

…. We have heard the arguments of both the sides on this issue and also perused the relevant material available on record. The Ld. DR has relied on the decision of Hon’ble Supreme Court in the case of Pubjab State Industrial Development Corporation Ltd. vs CIT 225 ITR 792 in support of the revenue’s case on this issue. As rightly contended by the learned counsel for the assessee, the said decision however is distinguishable on facts in as much as, the expenditure incurred by the assessee company in the said case for fees paid to ROC for enhancement of capital was not only made once and for all but with a view to b…

Phillip (India) P.Ltd ( Formelry Mf Global (India) P.Ltd, Mumbai vs. ACIT RG 6(3), Mumbai

Accordingly, Ground no. 2 raised by the assessee is partly allowed

ITA 3016/MUM/2013[2009-10]Status: DisposedITAT Mumbai26 Feb 2020AY 2009-10

Bench: Shri Saktijit Dey, Jm & Shri S. Rifaur Rahman, Am

For Appellant: Shri Nishant Thakkar & MsFor Respondent: Shri Kumar Padmapani Bora
Section 115JSection 143(1)Section 143(2)Section 30Section 32

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, JM & SHRI S. RIFAUR RAHMAN, AM आयकरअपीलसं./ I.T.A. No. 3016/Mum/2013 (निर्धारणवर्ा / Assessment Year: 2009-10) The ACIT Range-6(3), Phillip (India) Pvt. Ltd. (formerly MF Global Room no. 669, Aayakar (India) Pvt. Ltd.) Bhavan, M. K. Road, बिधम/ No. 1, 2nd floor, C-Block, Mumbai-400 020 Modern Centre, 101, K. Vs. Khadye Marg, Jacob Circle, Mahalaxmi, Mumbai – 400 011. स्थायीलेखासं./जीआइआरसं./PAN No. AAECM4736E (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : अपीलाथीकीओरसे/ Appellant : Shri Nishant Thakkar & Ms. Jasmine Amalsadvala, A…

DCIT (Ltu), New Delhi vs. M/S. Indian Railway Finance Corporation Ltd., New Delhi

In the result, appeal of the assessee is partly allowed, appeal of the Assessing Officer and Cross Objection of the assessee are dismissed

ITA 6082/DEL/2016[2012-13]Status: DisposedITAT Delhi14 Feb 2020AY 2012-13

Bench: Ms.Suchitra Kamble & Shri Prashant Maharishiassessment Year: 2011-12 Dcit (Ltu) Indian Railway Finance Circle-1 Vs Corporation Ltd. Nbcc Plaza Pushasp Vihar Ug Floor, East Tower, New Delhi-110017 Nbcc Place, Bhisham Pitamah Marg, Lodhi Road, New Delhi – 110 003. Pan : Aaaci0681C (Appellant) (Respondent) A N D Assessment Year: 2011-12 Indian Railway Finance Dcit (Ltu) Corporation Ltd. Vs Pushp Vihar, Ug Floor, East Tower, Nbcc Saket Place, Bhisham Pitamah New Delhi Marg, Lodhi Road, New Delhi – 110 003. Pan : Aaaci0681C (Appellant) (Respondent) A N D Assessment Year: 2012-13 Indian Railway Finance Dcit (Ltu) Corporation Ltd. Vs Pushp Vihar, Ug Floor, East Tower, Nbcc Saket

Section 115JSection 14ASection 37(1)

…ourt in the case of Framatone Connector O EN Ltd. vs DCIT, Special Rsange-2, Ernakulum [2007] 294 ITR 559 (Kerala) wherein the Court by following the decision of the Apex Court in the case of Punjab State Industrial Development Corporation Ltd. vs. CIT [1997] 225 ITR 792 (SC) had upheld the finding of the ITAT, Cochin Bench, that expenditure incurred by the assessee for taking membership in the club was capital expenditure. 3. The brief facts of the case is that assessee company is a Government of India Undertaking dealing in leasing and finance activities exclusively for the Indian Railways. It is engaged in le…

M/S. Indian Railway Finance Corporation Ltd., New Delhi vs. DCIT (Ltu), New Delhi

In the result, appeal of the assessee is partly allowed, appeal of the Assessing Officer and Cross Objection of the assessee are dismissed

ITA 5942/DEL/2016[2012-13]Status: DisposedITAT Delhi14 Feb 2020AY 2012-13

Bench: Ms.Suchitra Kamble & Shri Prashant Maharishiassessment Year: 2011-12 Dcit (Ltu) Indian Railway Finance Circle-1 Vs Corporation Ltd. Nbcc Plaza Pushasp Vihar Ug Floor, East Tower, New Delhi-110017 Nbcc Place, Bhisham Pitamah Marg, Lodhi Road, New Delhi – 110 003. Pan : Aaaci0681C (Appellant) (Respondent) A N D Assessment Year: 2011-12 Indian Railway Finance Dcit (Ltu) Corporation Ltd. Vs Pushp Vihar, Ug Floor, East Tower, Nbcc Saket Place, Bhisham Pitamah New Delhi Marg, Lodhi Road, New Delhi – 110 003. Pan : Aaaci0681C (Appellant) (Respondent) A N D Assessment Year: 2012-13 Indian Railway Finance Dcit (Ltu) Corporation Ltd. Vs Pushp Vihar, Ug Floor, East Tower, Nbcc Saket

Section 115JSection 14ASection 37(1)

…ourt in the case of Framatone Connector O EN Ltd. vs DCIT, Special Rsange-2, Ernakulum [2007] 294 ITR 559 (Kerala) wherein the Court by following the decision of the Apex Court in the case of Punjab State Industrial Development Corporation Ltd. vs. CIT [1997] 225 ITR 792 (SC) had upheld the finding of the ITAT, Cochin Bench, that expenditure incurred by the assessee for taking membership in the club was capital expenditure. 3. The brief facts of the case is that assessee company is a Government of India Undertaking dealing in leasing and finance activities exclusively for the Indian Railways. It is engaged in le…

DCIT, New Delhi vs. M/S Indian Railway Finance Corporation Ltd., New Delhi

In the result, appeal of the assessee is partly allowed, appeal of the Assessing Officer and Cross Objection of the assessee are dismissed

ITA 515/DEL/2016[2011-12]Status: DisposedITAT Delhi14 Feb 2020AY 2011-12

Bench: Ms.Suchitra Kamble & Shri Prashant Maharishiassessment Year: 2011-12 Dcit (Ltu) Indian Railway Finance Circle-1 Vs Corporation Ltd. Nbcc Plaza Pushasp Vihar Ug Floor, East Tower, New Delhi-110017 Nbcc Place, Bhisham Pitamah Marg, Lodhi Road, New Delhi – 110 003. Pan : Aaaci0681C (Appellant) (Respondent) A N D Assessment Year: 2011-12 Indian Railway Finance Dcit (Ltu) Corporation Ltd. Vs Pushp Vihar, Ug Floor, East Tower, Nbcc Saket Place, Bhisham Pitamah New Delhi Marg, Lodhi Road, New Delhi – 110 003. Pan : Aaaci0681C (Appellant) (Respondent) A N D Assessment Year: 2012-13 Indian Railway Finance Dcit (Ltu) Corporation Ltd. Vs Pushp Vihar, Ug Floor, East Tower, Nbcc Saket

Section 115JSection 14ASection 37(1)

…ourt in the case of Framatone Connector O EN Ltd. vs DCIT, Special Rsange-2, Ernakulum [2007] 294 ITR 559 (Kerala) wherein the Court by following the decision of the Apex Court in the case of Punjab State Industrial Development Corporation Ltd. vs. CIT [1997] 225 ITR 792 (SC) had upheld the finding of the ITAT, Cochin Bench, that expenditure incurred by the assessee for taking membership in the club was capital expenditure. 3. The brief facts of the case is that assessee company is a Government of India Undertaking dealing in leasing and finance activities exclusively for the Indian Railways. It is engaged in le…

M/S Indian Railway Finance Corporation Ltd, New Delhi vs. DCIT, New Delhi

In the result, appeal of the assessee is partly allowed, appeal of the Assessing Officer and Cross Objection of the assessee are dismissed

ITA 380/DEL/2016[2011-12]Status: DisposedITAT Delhi14 Feb 2020AY 2011-12

Bench: Ms.Suchitra Kamble & Shri Prashant Maharishiassessment Year: 2011-12 Dcit (Ltu) Indian Railway Finance Circle-1 Vs Corporation Ltd. Nbcc Plaza Pushasp Vihar Ug Floor, East Tower, New Delhi-110017 Nbcc Place, Bhisham Pitamah Marg, Lodhi Road, New Delhi – 110 003. Pan : Aaaci0681C (Appellant) (Respondent) A N D Assessment Year: 2011-12 Indian Railway Finance Dcit (Ltu) Corporation Ltd. Vs Pushp Vihar, Ug Floor, East Tower, Nbcc Saket Place, Bhisham Pitamah New Delhi Marg, Lodhi Road, New Delhi – 110 003. Pan : Aaaci0681C (Appellant) (Respondent) A N D Assessment Year: 2012-13 Indian Railway Finance Dcit (Ltu) Corporation Ltd. Vs Pushp Vihar, Ug Floor, East Tower, Nbcc Saket

Section 115JSection 14ASection 37(1)

…ourt in the case of Framatone Connector O EN Ltd. vs DCIT, Special Rsange-2, Ernakulum [2007] 294 ITR 559 (Kerala) wherein the Court by following the decision of the Apex Court in the case of Punjab State Industrial Development Corporation Ltd. vs. CIT [1997] 225 ITR 792 (SC) had upheld the finding of the ITAT, Cochin Bench, that expenditure incurred by the assessee for taking membership in the club was capital expenditure. 3. The brief facts of the case is that assessee company is a Government of India Undertaking dealing in leasing and finance activities exclusively for the Indian Railways. It is engaged in le…

Sam Fine O Chem Limited, Mumbai vs. ACIT- 11 (1)(2), Mumbai

ITA 3755/MUM/2018[2013-14]Status: DisposedITAT Mumbai09 Jan 2020AY 2013-14

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Ravish Sood, Jm

For Appellant: Written SubmissionsFor Respondent: Shri N. Padmanabhan-Sr.AR
Section 143(3)Section 35D

…l of the assessee company and therefore, expenditure on capital account. 4. The Ld. CIT(A), relying upon the decision of Hon'ble Supreme Court in the case of Brooke Bond India Limited vs. CIT (225 ITR 798) and Punjab State Industrial Corporation Ltd. Vs. CIT (225 ITR 792) confirmed the stand of Ld. AO. In the stated decisions, it was held that increase in capital results in expansion of capital base and therefore, the 3 M/s. Sam Fine O Chem Limited Assessment Year :2013-14 expenditure would retain the character of capital expenditure. Regarding alternative submissions that 1/5th of expenditure should be allowed u…

M/S Incap Contract Manufacturing Services Pvt Ltd, Bangalore vs. Assistant Commissioner of Income-Tax, Bangalore

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

ITA 697/BANG/2017[2012-13]Status: DisposedITAT Bangalore30 Dec 2019AY 2012-13

Bench: Shri N.V. Vasudevan & Shri D.S. Sunder Singhit(Tp)A No.697/Bang/2017 Assessment Year: 2012-13

For Appellant: Shri K.R. Vasudevan, AdvocateFor Respondent: Shri Pradeep Kumar, CIT(DR)(ITAT) Bengaluru
Section 143(3)Section 92Section 92C

…concerned, it was pointed out by the ld. counsel for assessee that convertible debentures were converted into equity shares and therefore the principle laid down by the Hon'ble Supreme Court in the case of Punjab State Industrial Development Corporation Ltd. (225 ITR 792) and Brooke Bond India Ltd. (225 ITR 798) will not be applicable. According to him, the decision of Hon'ble Supreme Court in the case of CIT v. General Insurance Corporation (286 ITR 232) wherein it was held that when bonus shares are issued, any expenditure in issue of bonus share should be regarded as revenue expenditure will apply. According t…

DCIT, New Delhi vs. M/S. Kushal Infraproject Industries India Ltd., New Delhi

ITA 5460/DEL/2015[2011-12]Status: DisposedITAT Delhi30 Dec 2019AY 2011-12

Bench: : Shri Bhavnesh Saini & Dr. B.R.R. Kumar

For Appellant: Shri Ajay Wadhwa, AdvFor Respondent: Shri J.K. Mishra, CIT DR
Section 40A(2)

…R relied upon the Judgment of Hon’ble Delhi High Court in the case of CIT vs., Hindustan Insecticides Ltd., 116 Taxman 406 in which following the Judgment of Hon’ble Supreme Court in the case of Punjab State Industrial Development Corporation Ltd. Vs. CIT, 225 ITR 792 and Brooke Bond India 225 ITR 798, the Hon’ble Delhi High Court held that since expenses incurred in connection with the issue of shares with a view to increase its share capital was directly related to expenditure expansion of capital base of the company was capital expenditure even though it might incidentally help in company’s business. The i…

Kaushal Infraproject Industries India Ltd., New Delhi vs. DCIT, New Delhi

ITA 5348/DEL/2015[2011-12]Status: DisposedITAT Delhi30 Dec 2019AY 2011-12

Bench: : Shri Bhavnesh Saini & Dr. B.R.R. Kumar

For Appellant: Shri Ajay Wadhwa, AdvFor Respondent: Shri J.K. Mishra, CIT DR
Section 40A(2)

…R relied upon the Judgment of Hon’ble Delhi High Court in the case of CIT vs., Hindustan Insecticides Ltd., 116 Taxman 406 in which following the Judgment of Hon’ble Supreme Court in the case of Punjab State Industrial Development Corporation Ltd. Vs. CIT, 225 ITR 792 and Brooke Bond India 225 ITR 798, the Hon’ble Delhi High Court held that since expenses incurred in connection with the issue of shares with a view to increase its share capital was directly related to expenditure expansion of capital base of the company was capital expenditure even though it might incidentally help in company’s business. The i…

Kaushal Infraproject Industries India Ltd., New Delhi vs. DCIT, New Delhi

ITA 4136/DEL/2015[2010-11]Status: DisposedITAT Delhi30 Dec 2019AY 2010-11

Bench: : Shri Bhavnesh Saini & Dr. B.R.R. Kumar

For Appellant: Shri Ajay Wadhwa, AdvFor Respondent: Shri J.K. Mishra, CIT DR
Section 40A(2)

…R relied upon the Judgment of Hon’ble Delhi High Court in the case of CIT vs., Hindustan Insecticides Ltd., 116 Taxman 406 in which following the Judgment of Hon’ble Supreme Court in the case of Punjab State Industrial Development Corporation Ltd. Vs. CIT, 225 ITR 792 and Brooke Bond India 225 ITR 798, the Hon’ble Delhi High Court held that since expenses incurred in connection with the issue of shares with a view to increase its share capital was directly related to expenditure expansion of capital base of the company was capital expenditure even though it might incidentally help in company’s business. The i…

DCIT, New Delhi vs. M/S. Kushal Infraproject Industries India Ltd., New Delhi

ITA 2802/DEL/2015[2010-11]Status: DisposedITAT Delhi30 Dec 2019AY 2010-11

Bench: : Shri Bhavnesh Saini & Dr. B.R.R. Kumar

For Appellant: Shri Ajay Wadhwa, AdvFor Respondent: Shri J.K. Mishra, CIT DR
Section 40A(2)

…R relied upon the Judgment of Hon’ble Delhi High Court in the case of CIT vs., Hindustan Insecticides Ltd., 116 Taxman 406 in which following the Judgment of Hon’ble Supreme Court in the case of Punjab State Industrial Development Corporation Ltd. Vs. CIT, 225 ITR 792 and Brooke Bond India 225 ITR 798, the Hon’ble Delhi High Court held that since expenses incurred in connection with the issue of shares with a view to increase its share capital was directly related to expenditure expansion of capital base of the company was capital expenditure even though it might incidentally help in company’s business. The i…

M/S. Great Eastern Energy Corporation Ltd., Gurgaon vs. DCIT, New Delhi

The appeal of the assessee are allowed

ITA 5728/DEL/2016[2012-13]Status: DisposedITAT Delhi20 Nov 2019AY 2012-13

Bench: Shri Kuldip Singh & Shri Prashant Maharishidcit, Vs. Great Eastern Energy Circle-10(2), Corporation Ltd, New Delhi Signature Towers-A, 14Th Floor, South City, Nh-8, Gurgaon Pan: Aaacg3345F (Appellant) (Respondent)

For Appellant: Shri Ravi Sharma, CAFor Respondent: Smt Naina Soin Kapil, Sr
Section 143Section 37Section 37(1)

…arely covered by the decision of the honourable Supreme Court in case of CIT vs. General Insurance Corp 286 ITR 232 wherein the honourable Supreme Court has also considered and distinguished the decision in case of Punjab State industrial development Corp Ltd 225 ITR 792 and Brooke Bond India Ltd 225 ITR 798 for the reason that in the said cases expenditure was incurred for the purpose of increasing company share capital by the issue of fresh shares and there was in flow of fresh funds. 10. We have carefully considered the rival contention and perused the orders of the lower authorities. In the present case, the…

M/S. Great Estern Energy Corporation Ltd., Gurgaon vs. DCIT, New Delhi

The appeal of the assessee are allowed

ITA 3360/DEL/2015[2011-12]Status: DisposedITAT Delhi20 Nov 2019AY 2011-12

Bench: Shri Kuldip Singh & Shri Prashant Maharishidcit, Vs. Great Eastern Energy Circle-10(2), Corporation Ltd, New Delhi Signature Towers-A, 14Th Floor, South City, Nh-8, Gurgaon Pan: Aaacg3345F (Appellant) (Respondent)

For Appellant: Shri Ravi Sharma, CAFor Respondent: Smt Naina Soin Kapil, Sr
Section 143Section 37Section 37(1)

…arely covered by the decision of the honourable Supreme Court in case of CIT vs. General Insurance Corp 286 ITR 232 wherein the honourable Supreme Court has also considered and distinguished the decision in case of Punjab State industrial development Corp Ltd 225 ITR 792 and Brooke Bond India Ltd 225 ITR 798 for the reason that in the said cases expenditure was incurred for the purpose of increasing company share capital by the issue of fresh shares and there was in flow of fresh funds. 10. We have carefully considered the rival contention and perused the orders of the lower authorities. In the present case, the…

DCIT, New Delhi vs. M/S. Great Eastern Energy Corporation Ltd., Gurgaon

The appeal of the assessee are allowed

ITA 3310/DEL/2015[2011-12]Status: DisposedITAT Delhi20 Nov 2019AY 2011-12

Bench: Shri Kuldip Singh & Shri Prashant Maharishidcit, Vs. Great Eastern Energy Circle-10(2), Corporation Ltd, New Delhi Signature Towers-A, 14Th Floor, South City, Nh-8, Gurgaon Pan: Aaacg3345F (Appellant) (Respondent)

For Appellant: Shri Ravi Sharma, CAFor Respondent: Smt Naina Soin Kapil, Sr
Section 143Section 37Section 37(1)

…arely covered by the decision of the honourable Supreme Court in case of CIT vs. General Insurance Corp 286 ITR 232 wherein the honourable Supreme Court has also considered and distinguished the decision in case of Punjab State industrial development Corp Ltd 225 ITR 792 and Brooke Bond India Ltd 225 ITR 798 for the reason that in the said cases expenditure was incurred for the purpose of increasing company share capital by the issue of fresh shares and there was in flow of fresh funds. 10. We have carefully considered the rival contention and perused the orders of the lower authorities. In the present case, the…

DCIT., Circle-4(1)(1), Ahmedabad vs. Urmin Products Pvt.Ltd., Ahmedabad

In the result, the appeal of the revenue and cross objection filed assessee both are dismissed

ITA 1614/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad19 Nov 2019AY 2012-13
For Appellant: Shri Aseem L. Thakkar, A.RFor Respondent: Shri Vidhut Trivedi, Sr. D.R
Section 143(3)Section 2(24)(x)Section 35D

…of cross objection of the assessee is dismissed after fallowing the decision of the Hon’ble Supreme I.T.A No. 1614/Ahd/2017 & C.O No. 50/Ahd/2018 A.Y. 2012-13 Page No 9 Court in the case of Punjab State Industrial Development Corporation Ltd. vs. CIT (1997) 225 ITR 792(SC). 15. In the result, the appeal of the revenue and cross objection filed assessee both are dismissed. Order pronounced in the open court on 19-11-2019 (RAJPAL YADAV) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad : Dated 19/11/2019 आदेश क" ""त"ल"प अ"े"षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4.…

M/S.Lifestyle International Private Limited, Bangalore vs. Assistant Commissioner of Income-Tax, Bangalore

In the result, appeal filed by the assessee is treated as allowed for statistical purpose

ITA 2332/BANG/2016[2007-2008]Status: DisposedITAT Bangalore24 Oct 2019AY 2007-2008

Bench: Shri N.V.Vasudevan () & Shri G Manjunatha ()

Section 143(3)

…has rightly disallowed brokerage charges as capital in nature and the ld. CIT(A) has rightly affirmed findings of the ld. Assessing Officer. In this regard, he relied upon the decision of Hon’ble Supreme court in case of Punjab State Industrial vs. CIT (1997) 225 ITR 792. 6. We have heard both parties, perused materials on record and gone through orders of the revenue authorities along with case law cited by the ld. DR. We find that the assessee had taken certain premises on rent to set its retail stores for which it has paid brokerage charges to professionals who facilitated transactions with landlords. The prof…

DCIT - CC - 2(2), Mumbai vs. M/S Empower India Limited, Mumbai

ITA 3205/MUM/2019[2011-12]Status: DisposedITAT Mumbai23 Oct 2019AY 2011-12

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am आयकर अपील सुं/ Ita No. 3205/Mum/2019 (यिर्ाारण बर्ा / Assessment Year 2011-12) आयकर अपील सुं/ Ita No. 5584/Mum/2017 (यिर्ाारण बर्ा / Assessment Year 2011-12) The Dy. Commissioner Of Income Tax, ……………. Appellant Central Circle 2(2), Room No. 806, 8Th Floor, / अपीलाथी Old Cgo Annex Bldg, M.K. Road, Mumbai-400 020 V/S M/S Empower India Ltd. 25/25A, 327, Nawab Building, 2Nd Floor, …………….Respondent Mumbai-400 001 / प्रत्यथााी स्थायी लेखा िं /Pan – Aaach3967N आयकर अपील सुं/ Ita No. 5207/Mum/2017 (यिर्ाारण बर्ा / Assessment Year 2011-12) M/S Empower India Ltd. 25/25A, 327, Nawab Building, 2Nd Floor, ……………. Appellant Mumbai-400 001 / अपीलाथी स्थायी लेखा िं /Pan – Aaach3967N V/S The Dy. Commissioner Of Income Tax, Central Circle 2(2), Room No. 806, 8Th Floor, …………….Respondent Old Cgo Annex Bldg, M.K. Road, / प्रत्यथााी Mumbai-400 020 5584 & 5207/Mum/2017 2 | P A G E

For Appellant: Shri Neeraj Mangla, ARFor Respondent: Shri R. Manjunatha Swamy, DR
Section 131Section 143(3)Section 153C

…the expansion of the capital base of the company and is capital in nature which cannot be allowed under section 37(1) of the Act. In this regard, reliance is placed on the decision in the cases of Punjab State Industrial Development Corpn. Ltd vs. CIT (1997) 93 Taxmann 5 (SC) dated 4.12.1996 and Brooke Bond India Ltd vs. CIT 91 Taxman 26 (SC) dated 27.02.1997. In case of Punjab State Industrial Development Corpn. Ltd Vs. CIT, the Hon’ble Apex court has held as under: We do not consider it necessary to examine all the decisions in extenso because we are of the opinion that the fee paid to the…

Deputy Commissioner of Income Tax Central Circle-2(2), Mumbai vs. Empower India Limited, Mumbai

ITA 5584/MUM/2017[2011-12]Status: DisposedITAT Mumbai23 Oct 2019AY 2011-12

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am आयकर अपील सुं/ Ita No. 3205/Mum/2019 (यिर्ाारण बर्ा / Assessment Year 2011-12) आयकर अपील सुं/ Ita No. 5584/Mum/2017 (यिर्ाारण बर्ा / Assessment Year 2011-12) The Dy. Commissioner Of Income Tax, ……………. Appellant Central Circle 2(2), Room No. 806, 8Th Floor, / अपीलाथी Old Cgo Annex Bldg, M.K. Road, Mumbai-400 020 V/S M/S Empower India Ltd. 25/25A, 327, Nawab Building, 2Nd Floor, …………….Respondent Mumbai-400 001 / प्रत्यथााी स्थायी लेखा िं /Pan – Aaach3967N आयकर अपील सुं/ Ita No. 5207/Mum/2017 (यिर्ाारण बर्ा / Assessment Year 2011-12) M/S Empower India Ltd. 25/25A, 327, Nawab Building, 2Nd Floor, ……………. Appellant Mumbai-400 001 / अपीलाथी स्थायी लेखा िं /Pan – Aaach3967N V/S The Dy. Commissioner Of Income Tax, Central Circle 2(2), Room No. 806, 8Th Floor, …………….Respondent Old Cgo Annex Bldg, M.K. Road, / प्रत्यथााी Mumbai-400 020 5584 & 5207/Mum/2017 2 | P A G E

For Appellant: Shri Neeraj Mangla, ARFor Respondent: Shri R. Manjunatha Swamy, DR
Section 131Section 143(3)Section 153C

…the expansion of the capital base of the company and is capital in nature which cannot be allowed under section 37(1) of the Act. In this regard, reliance is placed on the decision in the cases of Punjab State Industrial Development Corpn. Ltd vs. CIT (1997) 93 Taxmann 5 (SC) dated 4.12.1996 and Brooke Bond India Ltd vs. CIT 91 Taxman 26 (SC) dated 27.02.1997. In case of Punjab State Industrial Development Corpn. Ltd Vs. CIT, the Hon’ble Apex court has held as under: We do not consider it necessary to examine all the decisions in extenso because we are of the opinion that the fee paid to the…