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“enduring benefit”

Business ExpensesSection 37Section 371,056 judgments

The decision most relied on for enduring benefit is Empire Jute Co. Ltd. v. CIT (124 ITR 1), cited in 622 judgments on BharatTax.

Leading authorities on enduring benefit

Empire Jute Co. Ltd. v. CIT
124 ITR 1 · 1980 · Supreme Court
622
citing judgments

Expenditure is classified as revenue or capital based on its practical business effect, necessity, or expediency, rather than solely on the juristic classification of rights; an enduring benefit does not automatically make an expenditure capital if it facilitates trading operations or business efficiency.

Madras Industrial Investment Corporation Ltd. v. CIT
225 ITR 802 · 1997 · Supreme Court
568
citing judgments

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.

CIT v. De Beers India Minerals (P.) Ltd.
346 ITR 467 · 2012 · High Court
371
citing judgments

For fees for technical or consultancy services to 'make available' technical knowledge or know-how under a DTAA, the service must transmit such knowledge, allowing the recipient to derive an enduring benefit and utilize it independently in the future.

Eastern Investments Ltd. v. CIT
38 ITR 601 · 1960 · Supreme Court
346
citing judgments

Expenditure must be commercially expedient for carrying on the business, and it is not for revenue authorities to dictate how an assessee should conduct its business. The court will not question the business expediency of a transaction, even if a third party also benefits.

Taparia Tools Ltd. v. JCIT
372 ITR 605 · 2015 · Supreme Court
343
citing judgments

An expenditure does not automatically become capital in nature merely because it results in some enduring benefit for the assessee; it can be treated as revenue expenditure if incurred for genuine business purposes.

Alembic Chemical Works Co. Ltd. v. CIT
177 ITR 377 · 1989 · Supreme Court
275
citing judgments

Expenditure that provides a commercial advantage of an enduring nature may still be classified as revenue expenditure if its purpose is to facilitate existing trading operations, improve business efficiency, or upgrade existing products, depending on the specific context and objective.

CIT v. Madras Auto Service (P) Ltd.
233 ITR 468 · 1998 · Supreme Court
246
citing judgments

Expenditure providing an enduring advantage, such as upfront lease rent for land, is revenue expenditure if no capital asset is acquired or generated, allowing for deduction under Section 37, even when capitalized in the books of account.

Brooke Bond India Ltd. v. CIT
225 ITR 798 · 1997 · Supreme Court
228
citing judgments

Expenditure incurred for increasing a company's share capital or expanding its capital base, such as expenses related to the issue of shares, constitutes capital expenditure. Such expenses are not deductible as revenue expenditure under Section 37(1) of the Income-tax Act, 1961, even if they incidentally benefit the business.

Judgments citing enduring benefit

M/S Honeywell Technology Solutions Lab Private Limited, Bangalore vs. Joint Commissioner of Income Tax Special Range-3, Bangalore

ITA 2891/BANG/2018[2013-14]Status: DisposedITAT Bangalore31 Oct 2022AY 2013-14

Bench: Shri Beena Pillai & Shri Laxmi Prasad Sahuassessment Year : 2013-14

For Appellant: Smt. Shreya Loyalaka, AdvocateFor Respondent: Shri Dilip Jr. Standing Counsel for Dept. (DR)
Section 192Section 195Section 40Section 80JSection 9(1)(vii)

nature. The learned CIT(A) ought to have appreciated that such software are not perpetual in nature, software do not result in any enduring benefit and are not part of any "profit making apparatus" and hence, such software expenses are revenue in nature. 18. The learned CIT(A) has erred ... made not only once and for all but also with a view to bringing into existence an asset or an advantage for the enduring benefit, the same can be properly classified as capital expenditure. At the same time, even though the expenses are once and for all and may give

DCIT- CC-3(1), Mumbai vs. Nirmal Lifestyle (Pune) Pvt. Ltd., Mumbai

In the result, we agree with the findings and formulas given by the Ld

ITA 3088/MUM/2018[2013-14]Status: DisposedITAT Mumbai20 Oct 2022AY 2013-14

Bench: Shri Aby T Varkey & Shri Gagan Goyal

For Appellant: Dr. Mahesh Akhade - CIT(DR)For Respondent: Sh. Bhadresh Doshi
Section 132Section 143(3)Section 153A

Income Tax, (Supreme Court) M/s Nirmal Lifestyle (Pune) P. Ltd. A loan obtained cannot be treated as an asset or advantage for the enduring benefit of the business of the assessee. A loan is a liability and has to be repaid and, it is erroneous to consider a liability

M/S. Kirtilal Kalidas Jewellers (P) Ltd., Cimbatore vs. ACIT(Corporate Circle-2), Coimbatore

In the result, the appeal of the Assessee in I

ITA 151/CHNY/2021[2013-14]Status: DisposedITAT Chennai19 Oct 2022AY 2013-14

Bench: Shri Mahavir Singhand Shri G. Manjunatha

For Appellant: Mr. T. Banusekar, CharteredFor Respondent: Mr. P. Sajit Kumar, JCIT
Section 143(3)

renovation of branch office of a leased premises and thus, the same cannot be capitalized, as the Assessee is not creating asset which gives enduring benefit. 5. The Assessing Officer, however was not satisfied with the explanation furnished by the Assessee, but was of the view that the expenditure incurred ... under the head “Furniture Maintenance” is not in the nature of temporary repairs but it is a capital expenditure which gives enduring benefit and thus, rejected the arguments of the Assessee and made an addition towards the said expenditure after allowing depreciation at the rate of 5%. 6. Being aggrieved

M/S. Standard Chartered Bank, Mumbai vs. The DIT (I.T), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 3345/MUM/2004[1999-2000]Status: DisposedITAT Mumbai17 Oct 2022AY 1999-2000

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blestandard Chartered Bank V. The Director Of Income-Tax (It) 3Rd Floor, Tax Department 1St Floor, Scindia House 23-25, M.G. Road, Fort N.M. Road Ballard Pier Mumbai - 400001 Mumbai - 400038 Pan: Aabcs4681D (Appellant) (Respondent) Assessee Represented By : Shri P.J. Pardiwala & Shri Fenil Bhatt Department Represented By : Shri. Soumendu Kumar Dash

Section 143(3)Section 263Section 37

facts and circumstances, the DIT failed to demonstrate how the primary test mentioned in the circular letter to show how any advantage of enduring benefit resulted to assessee stood satisfied in the appellant's case to 13 Standard Chartered Bank warrant the disallowance and hold the expenditure as being capital

Hinduja Leyland Finance Limited, Tamil Nadu vs. ACIT, Chennai

In the result, appeal filed by the assessee is allowed

ITA 116/CHNY/2022[2017-18]Status: DisposedITAT Chennai14 Oct 2022AY 2017-18

Bench: Shri V. Durga Rao, Hon’Ble & Shri G. Manjunatha, Hon’Bleआयकर अपील सं./Ita No.116/Chny/2022 िनधा"रण वष" /Assessment Year: 2017-18 M/S.Hinduja Leyland Finance Ltd., V. The Dy. Commissioner- No.1, Sardar Patel Road, Guindy, Of Income Tax, Chennai. Cpc, Bangalore. [Pan: Aacch 1807 P] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Respondent: Mr.K.N.Dhandapani, Addl.CIT
Section 143(1)(a)Section 37Section 37(1)

that when there is no new business which has been created and there is no creation of any new asset nor there being any enduring benefit accrued to the assesse, the expenditure should be treated as revenue and not as capital. 4.2 The CIT(A) ought to have noted ... deduction towards share issue expenses and held that the expenditure incurred by the assessee towards share issue expenses is capital in nature, which gives enduring benefit, because, the assessee has incurred said expenses for raising additional capital which goes to increase capital base of the assessee. Therefore, he opined that

Ntt Asia Pacific Holdings Pte. Ltd.(Formerly Known As Dimension Data Asia Pacific Pte. Ltd., Mumbai vs. ACIT (It)2(1)(2), Mumbai

In the result, appeal by the assessee is partly allowed for statistical purpose

ITA 325/MUM/2022[2018-19]Status: DisposedITAT Mumbai13 Oct 2022AY 2018-19

Bench: Shri Prashant Maharishi, Accountnat Member & Shri Sandeep Singh Karhail

For Appellant: Shri Sunil MotilalaFor Respondent: Shri Soumendu Kumar Dash
Section 115A(1)(a)Section 139(1)Section 143(3)Section 144CSection 144C(13)Section 194LSection 234ASection 234B

like. The service should be aimed at and result in transmitting technical knowledge, etc., so that the payer of the service could derive an enduring benefit and utilize the knowledge or know-how on his own in future without the aid of the service provider. In other words

M/S India Bullion and Jewellers Association Ltd, Mumbai vs. Dy CIT Circle- 4(1)(2), Mumbai

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

ITA 725/MUM/2020[2014-15]Status: DisposedITAT Mumbai10 Oct 2022AY 2014-15

Bench: Shri Amit Shukla, Jm & Shri S. Rifaur Rahman, Am 1. आयकरअपीलसं./ I.T.A. No. 725/Mum/2020 (ननधधारणवर्ा / Assessment Year: 2014-15) Dcit Cir-4(1), M/S India Bullion & R. No. 678, 6Th Floor, Jewellers Association Ltd. बनाम/ Aayakar Bhavan, M. K. 185, Sheikh Memon Street, Vs. Road, Mumbai-400 020 Mumbai-400 002 स्थधयीलेखधसं./जीआइआरसं./ Pan No. Aaact1449D (अपीलधथी/Appellant) (प्रत्यथी / Respondent) : अपीलधथीकीओरसे/ Appellant By : Shri Prateek Jain, Ld. Ar प्रत्यथीकीओरसे/Respondent By : Shri R. N. D’Souza, Ld. Dr सुनवधईकीतधरीख/ : 14.07.2022 Date Of Hearing घोर्णधकीतधरीख / : 10.10.2022 Date Of Pronouncement

For Appellant: Shri Prateek Jain, Ld. ARFor Respondent: Shri R. N. D’Souza, Ld. DR
Section 143(3)

725/Mum/2020 M/s India Bullion And Jewellers Association Ltd. in the brand value of the association. Thus, he held that these expenses had resulted into enduring benefit to the association in the form of increase in membership as well as sponsorship for the expenses to be incurred for the annual summit ... whether the expenditure incurred on such a summit is revenue in nature or it is capital expenditure which has given rise to any enduring benefit or any kind of intangible asset. The plea of ‘enduring benefit’ has to be seen in the context of the economical realities of the business

Softlayer Technologies India Private Limited, Bangalore vs. Assistant Commissioner of Income Tax, Circle- 6(1)(2), Bangalore

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

ITA 265/BANG/2021[2016-17]Status: DisposedITAT Bangalore10 Oct 2022AY 2016-17

Bench: Shri George George K & Shri Laxmi Prasad Sahu

For Appellant: Shri Padamchand Khincha, C.AFor Respondent: Dr. Manjunath Karkihalli, CIT (DR)
Section 143(3)Section 92C

owned by the said purposes. Therefore, such intangibles cannot be equated to have rights of software for coding by the assessee to provides specific enduring benefit. Also, the assessee has failed to establish that such differences have material effect on the margin of the above company. In terms of clause

Anchor Health & Beuty Care Pvt. Ltd., Mumbai vs. DCIT Central Circle-7(2), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 1496/MUM/2019[2015-16]Status: DisposedITAT Mumbai04 Oct 2022AY 2015-16

Bench: Shri B.R Baskaran () & Smt. Kavitha Rajagopal ()

Section 143(3)Section 37(1)

section 37(1) of the I.T. Act, 1961. The assessee company further stated that the impugned expenditure does not amount to any enduring benefit of assessee’s asset, but was only aiding the company in promoting sales, distribution, production, organization, planning and execution impacting in the profit of the assessee ... paper book. The Ld.AR 4 ITA 1496/Mum/2019 reiterated that these are in the nature of revenue expenditure and does not have any enduring benefit to the assessee company. The Ld.AR relied on the decision in the case of Excel Industries Ltd (2013 358 ITR 295 (SC), Taparia Tools

Asst CIT Cir 2(2)(1), Mumbai vs. Mahindra & Mahindra Ltd, Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 1739/MUM/2015[2010-11]Status: DisposedITAT Mumbai04 Oct 2022AY 2010-11

Bench: Shri M. Balaganesh () & Smt. Kavitha Rajagopal () Mahindra & Mahindra Limited Vs Asst.Commissioner Of Income-Tax, Corporation Taxation, P.K. Kurne Circle-2(2)(1), Mumbai Chowk, Worli, Mumbai-400 018 Aayakar Bhavan, M.K. Road Pan : Aaacm3025E Mumbai-400 020 Appellant Respondent Asst.Commissioner Of Income-Tax, Vs 020Mahindra & Mahindra Limited Circle-2(2)(1), Mumbai Corporation Taxation, P.K. Kurne Aayakar Bhavan, M.K. Road Chowk, Worli, Mumbai-400 018 Mumbai-400 Pan : Aaacm3025E Appellant Respondent

Section 143(3)Section 144CSection 14ASection 35Section 40Section 80I

incurred to acquire entities regarding similar business activities and that these expenses are in the 5 ITA 1676/Mum/2015 ITA 1739/Mum/2015 nature of facilitating enduring benefit to the assessee. Further to this the AO has held that impugned expenditure is for the expansion of the future business of the assessee ... similar to that of A.Y. 2006-07 wherein the said expenditure was disallowed on the ground that the assessee had enduring benefit by way of acquisition of profit making apparatus and that the impugned expenditure was incurred by the assessee for the acquired company. The Ld.DRP has further stated that

Mahindra & Mahindra Limited, Mumbai vs. ACIT, Cir -2(2)(1), Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 1676/MUM/2015[2010-11]Status: DisposedITAT Mumbai04 Oct 2022AY 2010-11

Bench: Shri M. Balaganesh () & Smt. Kavitha Rajagopal () Mahindra & Mahindra Limited Vs Asst.Commissioner Of Income-Tax, Corporation Taxation, P.K. Kurne Circle-2(2)(1), Mumbai Chowk, Worli, Mumbai-400 018 Aayakar Bhavan, M.K. Road Pan : Aaacm3025E Mumbai-400 020 Appellant Respondent Asst.Commissioner Of Income-Tax, Vs 020Mahindra & Mahindra Limited Circle-2(2)(1), Mumbai Corporation Taxation, P.K. Kurne Aayakar Bhavan, M.K. Road Chowk, Worli, Mumbai-400 018 Mumbai-400 Pan : Aaacm3025E Appellant Respondent

Section 143(3)Section 144CSection 14ASection 35Section 40Section 80I

incurred to acquire entities regarding similar business activities and that these expenses are in the 5 ITA 1676/Mum/2015 ITA 1739/Mum/2015 nature of facilitating enduring benefit to the assessee. Further to this the AO has held that impugned expenditure is for the expansion of the future business of the assessee ... similar to that of A.Y. 2006-07 wherein the said expenditure was disallowed on the ground that the assessee had enduring benefit by way of acquisition of profit making apparatus and that the impugned expenditure was incurred by the assessee for the acquired company. The Ld.DRP has further stated that

M/S. India Medtronics Pvt.Ltd., Baroda vs. The Dy.CIT., Circle-1(2), Baroda

In the result, similarly the Assessee’s appeal is partly allowed

ITA 480/AHD/2011[2005-06]Status: DisposedITAT Mumbai30 Sept 2022AY 2005-06

Bench: Shri Amit Shukla & Shri Gagan Goyal

For Appellant: Sh. Rajan R. Vora with Sh. Nikhil TiwariFor Respondent: Dr. Yogesh Kamath/ Akhtar Hussain Ansari
Section 234BSection 271Section 274Section 92C

disallowed the claim of the Assessee. 85. Ld AR for assessee argued that EMD were given, not for acquiring of any asset giving enduring benefit and was merely given as to secure business with various hospitals and other agencies in the form of tenders. He submitted that the Assessee

Deputy Commissioner of Income Tax Officer Circle-3(1)(1), Bangalore vs. M/S Fmc India Private Limited, Bangalore

In the result, appeal filed by assessee stands partly allowed and appeal filed by revenue stands allowed for statistical purposes

ITA 2732/BANG/2018[2013-14]Status: DisposedITAT Bangalore29 Sept 2022AY 2013-14

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiassessment Year : 2013-14 M/S. Fmc India Pvt. The Assistant Ltd., Commissioner Of Embassy Star 1St Floor, Income Tax, No. 8 Palace Road, Circle 3(1)(1), Bangalore – 560 052. Bangalore. Vs. Pan: Aaacf4579N Appellant Respondent & Assessment Year : 2013-14 (By Revenue) Assessee By : Shri Nageswar Rao, Advocate Revenue By : Smt. S. Praveena, Cit Drp-2 Date Of Hearing : 07-07-2022 Date Of Pronouncement : 29-09-2022 Order Per Beena Pillaipresent Cross Appeals Are Filed By The Assessee & Revenue Against Order Dated 23/07/2018 Passes By The Ld.Cit(A)-3, Bangalore For Assessment Year 2013-14 On Following Grounds Of Appeal:

For Appellant: Shri Nageswar Rao, AdvocateFor Respondent: Smt. S. Praveena, CIT DRP-2
Section 250Section 37(1)

learned CIT(A) failed to appreciate that the product development expenditure would never bring any asset into existence nor give an enduring benefit to the assessee and thus ignored the principles laid down by various judicial precedents. Page 3 of 35 ITA Nos. 2611 & 2732/Bang/2018 4.4 The learned ... IndiaLtd. [2012] Page 18 of 35 ITA Nos. 2611 & 2732/Bang/2018 25 taxmann.com 438. It was submitted that these expenses did not result in any enduring benefit to the assessee. 8.1 The AO did not accept the explanations of the assessee. The AO took the view that these expenses would give

M/S Fmc India Private Limited, Bangalore vs. Assistant Commissioner of Income Tax Circle-3(1)(1), Bangalore

In the result, appeal filed by assessee stands partly allowed and appeal filed by revenue stands allowed for statistical purposes

ITA 2611/BANG/2018[2013-14]Status: DisposedITAT Bangalore29 Sept 2022AY 2013-14

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiassessment Year : 2013-14 M/S. Fmc India Pvt. The Assistant Ltd., Commissioner Of Embassy Star 1St Floor, Income Tax, No. 8 Palace Road, Circle 3(1)(1), Bangalore – 560 052. Bangalore. Vs. Pan: Aaacf4579N Appellant Respondent & Assessment Year : 2013-14 (By Revenue) Assessee By : Shri Nageswar Rao, Advocate Revenue By : Smt. S. Praveena, Cit Drp-2 Date Of Hearing : 07-07-2022 Date Of Pronouncement : 29-09-2022 Order Per Beena Pillaipresent Cross Appeals Are Filed By The Assessee & Revenue Against Order Dated 23/07/2018 Passes By The Ld.Cit(A)-3, Bangalore For Assessment Year 2013-14 On Following Grounds Of Appeal:

For Appellant: Shri Nageswar Rao, AdvocateFor Respondent: Smt. S. Praveena, CIT DRP-2
Section 250Section 37(1)

learned CIT(A) failed to appreciate that the product development expenditure would never bring any asset into existence nor give an enduring benefit to the assessee and thus ignored the principles laid down by various judicial precedents. Page 3 of 35 ITA Nos. 2611 & 2732/Bang/2018 4.4 The learned ... IndiaLtd. [2012] Page 18 of 35 ITA Nos. 2611 & 2732/Bang/2018 25 taxmann.com 438. It was submitted that these expenses did not result in any enduring benefit to the assessee. 8.1 The AO did not accept the explanations of the assessee. The AO took the view that these expenses would give

Asst. Comm. of Income Tax-6(1)(1), Mumbai vs. M/S. Exxon Mobile Company Pvt Ltd., Mumbai-400022

In the result, both the appeal of the Revenue and cross-

ITA 1283/MUM/2022[2011-12]Status: DisposedITAT Mumbai28 Sept 2022AY 2011-12

Bench: Shri Om Prakash Kant () & Ms Kavitha Rajagopal () Assessment Year: 2011-12 Deputy Commissioner Of Income M/S Exxon Mobile Company Tax, Office Of The Asstt. Pvt. Ltd., Commissioner Of Income Tax Vs. Kalpataru Point, Plot No. 107, 6(1)(1), Room No. 504, Aayakar Road No. 8, Sion (East), Bhavan, M.K. Road, Churchgate, Mumbai-400020. Mumbai-400020. Pan No. Aaace 3157 H Appellant Respondent C.O. No. 113/Mum/2022 (Ita No. 1283/Mum/2022) Assessment Year: 2011-12 M/S Exxon Mobile Company Pvt. Deputy Commissioner Of Ltd., Income Tax, Office Of The Asstt. Kalpataru Point, Plot No. 107, Road Vs. Commissioner Of Income Tax No. 8, Sion (East), 6(1)(1), Room No. 504, Mumbai-400020. Aayakar Bhavan, M.K. Road, Churchgate, Mumbai-400020. Pan No. Aaace 3157 H Appellant Respondent Revenue By : Ms. Samruddhi Hande, Dr Assessee By : Mr. Paras Savla, Adv. A/W Mr. Dhiraj Jain Date Of Hearing : 22/09/2022 Date Of Pronouncement : 28/09/2022

For Appellant: Mr. Paras Savla, Adv. a/wFor Respondent: Ms. Samruddhi Hande, DR
Section 195Section 40

technical knowledge, etc., so that the payer of the ing technical knowledge, etc., so that the payer of the service could derive an enduring benefit and utilize the knowledge service could derive an enduring benefit and utilize the knowledge service could derive an enduring benefit and utilize the knowledge ... mean that recipient of clear that “make available” not only would mean that recipient of the service is in a position to derive an enduring benefit out of the service is in a position to derive an enduring benefit out of the service is in a position to derive

Novartis India Ltd, Mumbai vs. Addl CIT RG 7(1), Mumbai

In the result, appeal filed by the assessee is partly allowed as stated above

ITA 7644/MUM/2012[2008-09]Status: DisposedITAT Mumbai28 Sept 2022AY 2008-09

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blem/S. Novartis India Limited Addl. Cit, Range 7(1) V. Aayakar Bhavan, M.K. Road Sandoz House, Dr. Annie Besant Road Worli, Mumbai - 400018 Mumbai Pan: Aaach2914F Appellant Respondent Assessee Represented By : Shri Rajan Vora & Shri Pranay Gandhi Revenue Represented By : Shri Rajneesh Yadav

Section 144C(5)Section 35DSection 92C(2)

Assessee’s contentions and proceeded to disallow the claim by treating said expense as capital in nature on the premise that the Assessee receives enduring benefits and instead allowed depreciation @25% amounting to ₹.21,69,483/-. 24 M/s. Novartis India Limited 24. Ld. AR relied on following case laws ... rejected the treatment adopted by the Assessee and has assessed the expenditure incurred on computer software/ license fee to be capital in nature citing enduring benefits. Consequently, claim for expense has been disallowed whilst providing relief for depreciation on the same @60% is allowed

M/S. Standard Chartered Bank, Mumbai vs. The ACIT (It)1(3), Mumbai

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

ITA 803/MUM/2009[1999-2000]Status: DisposedITAT Mumbai27 Sept 2022AY 1999-2000

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blestandard Chartered Bank V. Acit – Range-1(3) Taxation Department, 23-25 Scindia House, Ballard Estate M.G. Road, 3Rd Floor N.M. Marg, Mumbai - 400038 Fort, Mumbai - 400001 Pan: Aabcs4681D (Appellant) (Respondent) Adit (It)– 2(3) V. Standard Chartered Bank Room No. 120, 1St Floor Taxation Department, 23-25 Scindia House, Ballard Estate M.G. Road, 3Rd Floor N.M. Marg, Mumbai - 400038 Fort, Mumbai - 400001 Pan: Aabcs4681D (Appellant) (Respondent) Shri P.J. Pardiwala & Assessee Represented By : Shri Fenil Bhatt Shri Soumendu Kumar Dash Department Represented By :

Section 115JSection 14ASection 90Section 90(2)

expenditure is made, not only once and for all but with a view to bringing into existence an asset or an advantage for the enduring benefit of a trade, I think that there is very good reason (in the absence of special circumstances leading to an opposite conclusion) for treating ... made not only once and for all, but with a view to bringing into existence an asset or an advantage for the enduring benefit of a trade...........If what is got rid of by a lump sum payment is an annual business expense chargeable against revenue, the lump sum payment

West Gujarat Exdpress Way Ltd., Mumbai vs. Dy CIT -14(3)(1), Mumbai

In the result, appeal by the Revenue is dismissed

ITA 483/MUM/2021[2012-13]Status: DisposedITAT Mumbai26 Sept 2022AY 2012-13

Bench: Shri Om Prakash Kant & Shri Sandeep Singh Karhail

For Appellant: Shri Niranjan Govindekar a/wFor Respondent: Shri Ashok Kumar Kardam
Section 143(3)Section 250Section 253(3)

owner in possession of the right to collect the toll. The said right has been given to the assessee for a specified period with enduring benefit. It is also not disputed that on the expiry of the time period of the agreement, the said right of the assessee will cease ... toll free has been given to the assessee in lieu of the investments made and that such a right brings to the assessee an enduring benefit. The investments made under such circumstances cannot be said to be of revenue in nature but, as discussed above, are of capital in nature

ACIT, Circle-14(1)(2), Mumbai vs. West Gujarat Express Way Ltd., Mumbai

In the result, appeal by the Revenue is dismissed

ITA 2496/MUM/2021[2012-13]Status: DisposedITAT Mumbai26 Sept 2022AY 2012-13

Bench: Shri Om Prakash Kant & Shri Sandeep Singh Karhail

For Appellant: Shri Niranjan Govindekar a/wFor Respondent: Shri Ashok Kumar Kardam
Section 143(3)Section 250Section 253(3)

owner in possession of the right to collect the toll. The said right has been given to the assessee for a specified period with enduring benefit. It is also not disputed that on the expiry of the time period of the agreement, the said right of the assessee will cease ... toll free has been given to the assessee in lieu of the investments made and that such a right brings to the assessee an enduring benefit. The investments made under such circumstances cannot be said to be of revenue in nature but, as discussed above, are of capital in nature

M/S Southern Tpetrochemical Industries Corpration Limited, Chennai vs. ITO, Corporate Ward-3(1), Chennai

In the result, appeal filed by the assessee is allowed

ITA 232/CHNY/2022[2017-18]Status: DisposedITAT Chennai23 Sept 2022AY 2017-18

Bench: Shri V. Durga Rao, Hon’Ble & Shri G. Manjunatha, Hon’Bleआयकरअपीलसं./Ita No.232/Chny/2022 िनधा"रणवष"/Assessment Year: 2017-18 M/S.Southern Petrochemical V. The Income Tax Officer, Industries Corporation Ltd., Corporate Ward-3(1), 88, Spic House, Mount Road, Chennai. Guindy, Chennai-600 032. [Pan:Aaacs 4668 K] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Mr.R.Vijayaraghavan, Adv. &
Section 115JSection 143Section 263

asset in the form of holding shares. It is also pertinent to note that the assessee never acquired any capital asset or expenditure of enduring benefits to WOS and there is no relinquishment or transfer of capital asset to any third party". 21. The Jurisdictional High Court in the case ... Assessee company, amounting to Rs.5.5 crores, before 1 March 2003 would demonstrate that the purpose of investment was to give a Long Term Enduring Benefit to the Assessee. Merely because it was made in the normal course of business, it cannot be termed as anything but long term investment. This