Similarly, in CIT v. Whirlpool of India Ltd.

318 ITR 347High Court2009#6639 most cited

What is Similarly, in CIT v. Whirlpool of India Ltd. authority for?

Whether a business is considered 'setup' depends on the specific facts of each case, considering whether the business involves manufacturing or providing services, and the nature of those services.

17

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2012 to 2025.

Also referred to as

CIT v. Whirlpool of India Ltd · business setup · nature of expenses · revenue expenditure · capital expenditure · financial services · manufacturing business · service business · section 37(1)

Sections most often in play

Section 10B(8)Section 139(1)Section 139(3)Section 139(5)Section 143(3)Section 254Section 37(1)Section 80

Issues it is cited on

legal expensesrevenue expendituresection 37(1)section 37section 10previous yearpersoncompanyindiabusinessinterest

Judgments citing Similarly, in CIT v. Whirlpool of India Ltd.

DCIT Central Circle-28, New Delhi vs. Jindal Itf Limited, New Delhi

In the result, the appeal of the Revenue in ITA No

ITA 1777/DEL/2023[2013-14]Status: DisposedITAT Delhi04 Jun 2025AY 2013-14

Bench: Shri Mahavir Singh & Shri Naveen Chandra

For Appellant: Shri Vinod Kumar Bindal, CAFor Respondent: Shri Dayainder Singh Sidhu, CIT-DR
Section 143(3)

…commencement of business could not have been capitalized and was to be allowed as business expenditure." Page 8 of 20 ITA No. 1777/DEL/2023 [A.Y. 2013-14] The Dy. CI.T. Vs. M/s Jindal ITF Limited Jurisdictional High Court in the case of Whirlpool India Ltd 318 ITR 347 (Del) held that the company was a financial enterprise and the business is set up when the directors and staff are appointed and their salaries paid, computer acquired and installed. Hence, expenditure under section 37(1) is allowable. Jurisdictional High Court in the case of CIT v. Hughes Escorts Communications (165 Taxman 318) held that the as…

Glen Propbuild Pvt. Ltd., New Delhi vs. DCIT, Circle- 10(1), New Delhi

In the result, this appeal filed by the assessee stands allowed

ITA 2752/DEL/2018[2008-09]Status: DisposedITAT Delhi17 Apr 2023AY 2008-09

Bench: Shri Shamim Yahya & Shri Anubhav Sharma

For Appellant: Shri Salil Kapoor, AdvFor Respondent: Shri Anuj Garg, Sr.D.R
Section 143(3)Section 147Section 148Section 250(6)

…ghes Escorts Communications, [2009] 311 ITR 253 (Delhi) 19. Commissioner of Income Tax-IV Vs. Dhoomketu Builders & Development (P.) Ltd., [2014] 368 ITR 680 (Delhi) 20. Commissioner of Income Tax Vs. Whirlpool of India Ltd., I.T.A. No.2752/Del/2018 5 (2009] 318 ITR 347 (Delhi). 7. Per contra, ld. DR relied upon the CIT(A)’s order. 8. We have carefully considered the submissions. We note that reopening notice in this case has been issued after four years of the original assessment under Section 143(3) of the Act. Hence, proviso to Section 147 is clearly applicable. The said proviso provides as under: “Provided…

JCIT(OSD), Circle-4(2), New Delhi vs. Bharti Land Ltd, New Delhi

In the result, assessee’s appeal is allowed and the Revenue’s appeal

ITA 608/DEL/2020[2016-17]Status: DisposedITAT Delhi24 Mar 2023AY 2016-17
For Appellant: Shri Anil Bhalla, CAFor Respondent: Shri P. Praveen Sidharth, CIT DR

…xpenditure incurred between setting up and commencement of business could not have been capitalized and was to be allowed as business expenditure -Held, yes [Paras 6 to 9][In favour of assessee]. Jurisdictional High Court in the case of Whirlpool India Ltd - 318 ITR 347 (Del) held that the company was a financial enterprise and the business is set up when the directors and staff are appointed and their salaries paid, computer acquired and installed. Hence, expenditure under section 37(1) is allowable. Jurisdictional High Court in the case of CIT v. Hughes Escorts Communications (165 Taxman 318) held that the as…

Bharti Land Ltd, New Delhi vs. ACIT, Circle-4(2), New Delhi

In the result, assessee’s appeal is allowed and the Revenue’s appeal

ITA 195/DEL/2020[2016-17]Status: DisposedITAT Delhi24 Mar 2023AY 2016-17
For Appellant: Shri Anil Bhalla, CAFor Respondent: Shri P. Praveen Sidharth, CIT DR

…xpenditure incurred between setting up and commencement of business could not have been capitalized and was to be allowed as business expenditure -Held, yes [Paras 6 to 9][In favour of assessee]. Jurisdictional High Court in the case of Whirlpool India Ltd - 318 ITR 347 (Del) held that the company was a financial enterprise and the business is set up when the directors and staff are appointed and their salaries paid, computer acquired and installed. Hence, expenditure under section 37(1) is allowable. Jurisdictional High Court in the case of CIT v. Hughes Escorts Communications (165 Taxman 318) held that the as…

M/S. Ndtv Studios Ltd., New Delhi vs. ITO, New Delhi

In the result, the Appeal filed by the assessee is dismissed

ITA 1622/DEL/2014[2009-10]Status: DisposedITAT Delhi10 Aug 2022AY 2009-10

Bench: Shri N. K. Billaiya & Shri Yogesh Kumar U.S.

For Appellant: ShriFor Respondent: Shri Amit Shukla
Section 143(1)

…1 M/s. NDTV Studios Ltd., New Delhi IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘E’ NEW DELHI BEFORE SHRI N. K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER I.T.A. No. 1622/DEL/2014 (A.Y 2009-10) M/s. NDTV Studios Ltd. Income Tax Officer, [Now merged with New Vs. Ward : 13 (1), Delhi Television Limited], 207–Okhla Industrial New Delhi. Estate, Phase – III, New Delhi – 110 020. PAN No. AACCN8617K (RESPONDENT) (ASSESSEE) Assesseeby : Shri Tarandeep Singh, Advocate; & Shri Pulkit Verma, Advocate; Department by: Shri Amit Shukla, Sr.D.R.; Date of Hearing 03.08.2022 Date of Pro…

Maruti Insurance Broking Pvt Ltd vs. Deputy Commissioner of Income Tax

The appeal is allowed in the aforesaid terms

ITA/17/2021HC Delhi12 Apr 2021
For Appellant: - ........................................................ 5For Respondent: - ............................................................. 6
Section 260ASection 3

…s had distinguished the judgement rendered in the Ramaraju Case in the context of the Act-in- issue (i.e., Income Tax Act, 1961). In this context, in particular, Mr. Vohra relied upon the judgment of this Court rendered in CIT vs. Whirlpool of India Ltd., 318 ITR 347 (Del). Mr. Vohra also relied upon the decisions rendered in CIT v. Dhoomketu Builders & Development (P.) Ltd., [2014] 368 ITR 680 (Del) and Western India Vegetable Products Ltd. v. CIT [1954] 26 ITR 151 (Bom). 3.1. In addition to the aforesaid, Mr. Vohra also drew our attention to the fact [something which we have already noticed hereinabo…

Globex Energia P.Ltd, Mumbai vs. Asst CIT 6(3), Mumbai

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

ITA 1109/MUM/2014[2010-11]Status: DisposedITAT Mumbai18 Nov 2016AY 2010-11

Bench: Shri Amit Shukla & Shri Ashwani Tanejaassessment Year: 2010-11 Globex Energia P. Ltd. Acit 6(3) 4Th Floor, Sadhna House, 570 Mumbai- बनाम/ Pandurang Budhkar Marg, Vs. Behind Mahindra Towr, S. Worli Mumbai-400018 (Appellant) (Respondent ) P.A. No.Aadcg1161C Appellant By Shri Nishant Thakkar & Mis. Jasmin Amalsadvala (Ar) Revenue By Shri Prakash Mane (Dr) सुनवाई क" तार"ख/Date Of Hearing: 09/11/2016 18/11/2016 आदेश क" तार"ख /Date Of Order:

Section 143(1)Section 143(3)

…place: 1.CIT Vs. Ralliwolf Ltd. (121 ITR 262) (Bom) 2.Saurashtra Cement & Chemical Industries Ltd. (91 ITR 170) (Guj) 3.Western India Vegetable Products Ltd. (26 ITR 151) 4.Ramaraja Surgical Cottons Mills Ltd. (63 ITR 478) 5.CIT vs Whirlpool of India Ltd 318 ITR 347 (Delhi) In the case of CIT vs Sardar Sarovar Narmada Nigam Ltd 364 ITR 477 (Guj) it has been held that where business of the assessee consists of different categories, then company can be said to have set up its business from the date when one of categories of its business was started and all the revenue expenditures after such date are allowabl…

DCIT 9(3)(1), Mumbai vs. Devon Outsourcing Services P.Ltd, Mumbai

The appeal of the Revenue is dismissed

ITA 3389/MUM/2016[2012-13]Status: DisposedITAT Mumbai01 Sept 2016AY 2012-13

Bench: Shri Joginder Singh, Assessment Year:2012-13 Dy. Cit-9(3)(1), M/S Devon Outsourcing 215, Aayakar Bhavan, Services Pvt. Ltd., बनाम/ 2Nd Floor, M.K. Marg, 11-A Technopolis Vs. Mumbai-400020 Konowledge Park, Mahakali Caves Road, Andehri(E), Mumbai-400093 "नधा"रती / Assessee राज"व / Revenue P.A. No.Aadcd4209N

Section 143(3)Section 40

…enses of Rs.2,20,573/- and expenses u/s 40(a)(ia) of the Act. The assessee also relied upon following the decision with respect to date of setting up of business. CIT vs E-Funds International India(2007) 162 taxman 1(Del.) CIT vs Whirlpool India Ltd. (2009) 318 ITR 347(Del.) Omniglobe Information Tech India Pvt. Ltd. vs CIT (TS- 526-HC-2014 (Del.) It is noted that the Ld. Commissioner of Income Tax (Appeal), while coming to a particular conclusion has analyzed the aforesaid decisions and the decision of Omniglobe Information Tech India Pvt. Ltd. (supra) in detail. It is further noted that each and every disal…

ACIT 10(1), Mumbai vs. Gattefosse India P. Ld, Mumbai

In the result, appeal of revenue is dismissed

ITA 333/MUM/2013[2009-10]Status: DisposedITAT Mumbai04 Mar 2016AY 2009-10
For Appellant: Ms. Sonalee GodboleFor Respondent: Smt. Anu K. Aggarwal
Section 3

…mmunications Ltd (2009) 311 ITR 253 (Delhi) wherein the Hon’ble High Court has held that the moment the assessee purchased VSAT equipment, it should be said that the business has been setup. 10.7. A similar view was taken in the case of Whirlpool of India Ltd 318 ITR 347 wherein the Hon’ble High Court has observed that : “The business was set up when directors were appointed, staff, such as regional and branch managers were appointed and their salaries were paid. In other words, it can be said that at that time, the company was ready to commence business.” 10.8. The Hon’ble High Court of Delhi has considered thes…

M/S Greenline Constructions Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 5793/DEL/2015[2004-05]Status: DisposedITAT Delhi15 Feb 2016AY 2004-05

Bench: Shri P.K. Bansal

For Appellant: Shri Gagan Kumar, AdvocateFor Respondent: Shri Robin Rawal, Senior DR
Section 271(1)(c)

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘SMC-I’ : NEW DELHI) BEFORE SHRI P.K. BANSAL, ACCOUNTANT MEMBER ITA No.5793/Del./2015 (ASSESSMENT YEAR : 2004-05) M/s. Greeenline Constructions Ltd., vs. ACIT, Circle 12 (1), (Presently known as M/s. Unitech New Delhi. Residential Resorts Ltd.), 6, Community Centre, Saket, New Delhi. (PAN : AAACG2305H) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Gagan Kumar, Advocate REVENUE BY : Shri Robin Rawal, Senior DR Date of Hearing : 15.02.2016 Date of Pronouncement : 15.02.2016 O R D E R This appeal has been filed by the assessee against the levy of penalty under…

M/S. Mahle Holding (India) Pvt. Ltd., Gurgaon vs. ITO, New Delhi

In the result the appeal of the assessee is allowed

ITA 5553/DEL/2014[2011-12]Status: DisposedITAT Delhi23 Dec 2015AY 2011-12

Bench: Shri Vijay Pal Raomahale Holding (India) Pvt. Ito, Ltd., 207, 2Nd Floor, Iris Tech Ward-6(1), Vs. Park, Sohna Road, Sector-48, New Delhi Gurgaon Pan:Aagcm2208M (Assessee) (Respondent)

For Appellant: Sh. Rajan Bhatia, AdvFor Respondent: Dr. Anjula Jain, Sr. DR

…e has received the fund from its parent company and investment to same in the group company in the month of February 2011. In support of his contention he has relied upon the decision of the Hon’ble jurisdictional High Court in the CIT Vs. Wirlpool India Ltd. 318 ITR 347. On the other hand the ld DR has relied upon the finding of the authorities below and submitted when the AO as well as learned Commissioner of Income-tax (Appeals) has given a finding that no business activity has been carried out by the assessee during the year under consideration then there is no question of setting up or commencement of the bu…

Reliance Gems & Jewels Ltd, Mumbai vs. DCIT 3(3), Mumbai

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

ITA 3855/MUM/2013[2008-09]Status: DisposedITAT Mumbai28 Oct 2015AY 2008-09

Bench: Shri N.K. Billaiya & Shri Amarjit Singhआयकर अपील सं/ I.T.A. No.3855/Mum/2013 ("नधा"रण वष" / Assessment Year:2008-09 Reliance Gems & Jewels The Dcit 3(3), बनाम/ Ltd., 9Th Floor, Aayakar Bhavan, Vs. Maker Chamber Iv, Mumbai-400 020 222, Nariman Point, Mumbai-400 021 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacr 7404C .. (अपीलाथ" /Appellant) (""यथ" / Respondent) अपीलाथ" ओर से/ Appellant By: Shri F.V. Irani ""यथ" क" ओर से/Respondent By: Shri Vivek Anand Ojha

For Appellant: Shri F.V. IraniFor Respondent: Shri Vivek Anand
Section 28Section 3Section 37Section 37(1)

…munications Ltd (2009) 311 ITR 253 (Delhi) wherein the Hon’ble High Court has held that the moment the assessee purchased VSAT equipment, it should be said that the business has been setup. 10.7. A similar view was taken in the case of Whirlpool of India Ltd 318 ITR 347 wherein the Hon’ble High Court has observed that : “The business was set up when directors were appointed, staff, such as regional and branch managers were appointed and their salaries were paid. In other words, it can be said that at that time, the company was ready to commence business.” 10.8. The Hon’ble High Court of Delhi has considered the…

Carefour Wc&C India Private Limited vs. Deputy Commissioner of Income Tax

ITA/42/2014HC Delhi22 Sept 2014
Section 260ASection 28Section 43D

…on Mills Ltd., 63 ITR 478 (iii) CIT Vs. Sarabhai Management Corporation Limited, 192 ITR 151 (iv) Sarabhai Management Corporation Ltd. Vs. CIT, 102, ITR 25 (v) CIT Vs. Hughes Escorts Communications Ltd., 311 ITR 253 (vi) CIT Vs. Whirlpool of India Ltd., 318 ITR 347 (vii) CIT Vs. ESPN Software India (P) Ltd., 301 ITR 368 (viii) CIT Vs. Sauer Danfoss (P) Ltd., ITA No. 1367/2010 (ix) CIT Vs. Aspentech India (P) Ltd., 187 TAXMAN 25 (x) CIT Vs. E.Funds International India, 162 TAXMAN 1 (xi) CIT Vs. Dhoomketu Builders & Development Pvt. Ltd., 216 TAXMAN 76 2014:DHC:4885-DB ITA No. 42/2014…

Omniglobe Information Tech India Pvt Ltd

ITA/257/2012HC Delhi11 Aug 2014
Section 10B

…e said that the business had been setup. This, it was held, was the relevant date for determining the nature and character of expenses incurred and whether they were revenue or capital in nature. 14. Similarly, in CIT Vs. Whirlpool of India Ltd. (2009) 318 ITR 347 (Del), the assessee was engaged in the business of providing financial services and the same question i.e. whether the business had been setup or not, came for consideration. It was observed that this question could only be answered by looking at, and was dependent on, the facts of each case. Different considerations would apply and the ans…

Commissioner of Income Tax Circle 18(1) vs. M/S Urban Mass Transit Ltd

ITA-84/2014HC Delhi28 Feb 2014
Section 35D

…these circumstances, this Court is of the opinion that the formulation of law by this Court in Commissioner of Income Tax v. M/s. Hughes Escorts 2014:DHC:1112-DB ITA 84/2014 Page 6 Communications Ltd., 311 ITR 253 and CIT v. Whirlpool of India Ltd., 318 ITR 347 applies squarely to the facts of this case. So far as the submissions with regard to the amounts paid to M/s Wilbur Smith Associates - which is sought to be added back - is concerned, once the Tribunal was of the opinion that business had commenced on account of the substantial income earned by the assessee after two years of its setting up…

Commissioner of Income Tax Circle 18(1) vs. M/S Urban Mass Transit Ltd

ITA/84/2014HC Delhi28 Feb 2014
Section 35D

…these circumstances, this Court is of the opinion that the formulation of law by this Court in Commissioner of Income Tax v. M/s. Hughes Escorts 2014:DHC:1112-DB ITA 84/2014 Page 6 Communications Ltd., 311 ITR 253 and CIT v. Whirlpool of India Ltd., 318 ITR 347 applies squarely to the facts of this case. So far as the submissions with regard to the amounts paid to M/s Wilbur Smith Associates - which is sought to be added back - is concerned, once the Tribunal was of the opinion that business had commenced on account of the substantial income earned by the assessee after two years of its setting up…

The Commissioner of Income Tax- I vs. M/s. Avon Organics Limited

ITTA/257/2012HC Telangana17 Jul 2012

Bench: GODA RAGHURAM,M.S.RAMACHANDRA RAO