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...thin. Certain broad tests have however been laid down, and of them the test suggested by Viscount Cave, L.C, in Atherton v. British Insulated and Helsby Cables Limited (...A.C Gupta, J.— The question for decision in this case is whether the money contributed by the assessee, a public limited company, for the construction of a new road in the...Tax Cases 155 appears to have been largely accepted in this country. This Court in Assam Bengal Cement Company Limited v. CIT...
...capital expenditure according to the test laid down by Viscount Cave, L.C., in Atherton v. British Insulated and Helsby Cables Limited(1) referred to in the judgment of this Court...for the benefit of its business and the immunity thus obtained by the managed company may well be regarded as the acquisition of an asset of enduring value by means of a capital outlay which will be a..., the appellant firm was appointed managing agent of a limited company for a period of thirty years from November 9, 1933. Clause 2 of the agreement provided for the remuneration of the managing agent...
...said test itself is the test of a prudent businessman. This test has been laid down in Atherton v. British Insulated and Helsby Cables Limited, [1925] 10 TC 155 (HL...business was a permissible deduction under section 36(1)(iii) of the Act and the test of commercial expediency applied for permitting deductions under section 37 applied to such claim for deduction. The...expected could not be more than 4 per cent. The assessee belongs to one of the largest groups of M/s. Hero Cycles (P) Limited and is assisted by a number of senior counsel. The assessee's conduct of...
...India and abroad, which has been invariably applied, has been set out in Atherton v. British Insulated and Helsby Cables Limited, [1925] 10 TC 155 at 191 (HL...discipline as conceived by the ITO on the assessee. He could do business in his own way and in his best interest and this is what the assessee did here.8. The well-known principle, both in...Mills Federation is a business expenditure and should be allowed while computing the income of the assessee?”2. The assessee is a limited company running a textile mill at Coimbatore. The...
...consideration in a very large number of cases. In the case of British Insulated and Helsby Cables, Limited v. Atherton various tests were recapitulated from decisions in previous ...’, ‘gains’ and ‘capital’ are to be construed according to their ordinary signification in commerce or accountancy. The question, what is capital expenditure, has been subject-matter of debate and...Limited, instalments paid by a tenant to the landlord towards the monopoly value fixed by the licensing, justices were held to be capital payment by the court of appeal. This payment represents the...
...459, whether asset or advantage acquired by the assesses was for the enduring benefit of the trade Atherten (H.M. Inspector of Taxes) v. British Insulated and Helsby Cables ...view of Lord Cave in Atherton (H.M. Inspector of Taxes) v. British Insulated and Helsby Cables, Limited 10 TC 155 and their own decision in Abdul Kayowm's case observed as follows...earning on of a business City of London Contract Corporation, Limited, v. Styles (Surveyor of Taxes) 2 TC 239 whether the assessee was granted any interest in lard Mohan Lal Hargovind of...
...different one.We shall now refer to a case which has been cited before us. In the British Insulated and Helsby Cables, Limited v. Atherton 10 Tax. Cas. 155...summary of the terms of the trust deed created by the British Insulated and Helsby Cables. After setting out the important provisions of the deed he concludes as follows:-"The trust deed contains many...British India for the investment of Trust Funds or partly by one or partly by the other.The noticeable feature of this trust deed is that there is no obligation on the Corporation...
...nature. Lord Cave's famous dictum in British Insulated and Helsby Cables, Limited v. Atherton, 1926 Appeal Cases 205(8) that expenditure is attributable to capita...Rs. 1,09,191 to Brotherhoods for conversion of the measurements and calculations in these drawings from the British to the metric system. The calculations in the drawings were originally set out in...pointed therein.39. Learned counsel for the revenue contended that by the conversion from the British system to the metric system, the value of the asset had been...
...the case of British Insulated and Helsby Cables, Limited v. Atherton (1926) AC 205 at p. 213 (C). “A sum of money”, said the learned Lord,“expende...expenditure incurred for the purpose of its business. That contention does not appear to me to be correct and I would dispose of it by referring to the oft-quoted pronouncement of Viscount Cave made in...
...principle enunciated by Vicount Cave in British Insulated and Helsby Cables, Limited v. Atherton. An advantage is to be considered to be an enduring benefit of a trade if the bene....and though it is not possible to lay down any satisfactory definition to cover all cases [Atherton v. British Insulated and Helsby Cables, Ltd. per Pollock M.R], ...of distinction: Anglo-Persian Oil Company, Limited v. Dale:What is capital and what is attributable to revenue account……. is a puzzling question to many accountants...
...rights add to and alter the nature of this capital asset, viz., the trade mark.
The leading authority on this branch of the law is British Insulated and Helsby Cables ...."
"At the end of the year 1925, however, all these authorities were considered by the house of Lords in British insulated and Helsby Cables v...relates to goods in respect of which a registered mark or transmitted.
These sections, Mr. Setalvad submits, give new rights which did not exist before and he contends that these new...
...of Taxes) v. Vickers Limited ( [19151 6 T.C. 671), Atherton v. British Insulated and Helsby Cables, Ltd. ([1925] 10 T.C. 1.55), Usher's case ( [1915] 6 T.C. 399), John Smith & Son v. Moore (H. M...Atherton v. British Insulated and Helsby Cables Ltd. ([1926] 10 T.C. 155). If what is got rid of by a lump sum payment is an annual business expense chargeable against revenue, the lump sum payment.... in Atherton's case (2). Atherton v. British Insulated and Helsby Cables Ltd. (2), laid down what has almost universally been accepted as the test for determining what is capital...
...British Insulated andHelsby Cables Limited v. Atherton [1926] A.C. 205 at page 213 when hesaid:-But when an...Hallstroms Proprietary Limited v. Federal Commissioner of Taxation(1946)72 C.L.R. 634 and page 648, where he said that the answer to.... is adopted was described by Richardson J.in Commissionerof Inland Revenue v. Thomas Borthwick and Sons (Australasia) Limited(1992...
...Lords in Atherton V. British Insulated and Helsby Cables, Limited [1925] 10 Tax Cas. 155, He particularly placed reliance on certain observations in the speech of Viscount Cave, L.C;, at page 192 ...."It is clear that in the case before their Lordships of the Privy Council the expenditure had been incurred for acquiring the concern and not for running the concern and that being as it was...stipulated agency remuneration and as regards the obligation to pay out of that remuneration 12½ per cent. to F.E. Dinshaw Limited and 12½ per cent, to Richard Tilden Smith's administrator. In the...
...profit and loss account. There is no material to hold that this is capital expenditure. In view of this finding of fact, the decision of the House of Lords in British Insulated and Helsby Cables, ...of the Payment of Bonus Act comes in the way of the contention of the learned counsel. No attack has been made against the correctness of the statements and particulars given in this regard in the..., read with the Payment of Bonus Ordinance, 1975 as against the bonus of 9. 4 per cent declared by the Management of the N. G. E. F. Limited for the company's accounting year 1974-75 ? (2) If not, at...
...limited number of returns.”In the British Insulated and Helsby Cables Ltd. their Lordships held that a new asset of lasting value was acquired inasmuch as there was lasting advantag...observations, of Lord Cave in Atherton v. British Insulated and Helsby Cables, Ltd.(1), which are as follows:“An expenditure to be in the nature of a capital expenditure.... In the case before the House of Lords the company, British Insulated and Helsby Cables Ltd., had contributed a sum of 31,784 £ to a pension fund to enable the elder members of the existing staff being...
...., (1969) 72 ITR 603; Atherton v. British Insulated and Helsby Cables Ltd. 10 TC 155; Robert Addic and Sons...
...to as they might help to arrive at a correct decision of the controversy between the parties. One celebrated test is that laid down by Lord Cave, L.C, in Atherton v. British Insulated and...Helsby Cables Ltd. (1925) 10 TC 155, (1925) 1 KB 421 TC at p. 192 (HL), where the learned Law Lord stated...in Groz Beckert Saboo Limited v. Commissioner Of Income Tax (1986) 160 ITR 743...
...invariably applied, has been set out in Atherton v. British Insulated & Helsby Cables Limited [1925] 10 TC 155 at 191 (HL) as follows :" …….a sum of mone...assessee. He could do business in his own way and in his best interest and this is what the assessee did here.The well-known principle, both in India and abroad, which has been...the Indian Cotton Mills Federation is a business expenditure and should bar allowed while computing the income of the assessee ? "The assessee is a limited company running a textile...
...expenditure. One of the standard tests now in use was laid down in the case of Atherton v. British Insulated and Helsby Cables Ltd. (1925) 10 TC 155, (1925) 1 KB...Sujata V. Manohar, J.— The assessee is a limited company carrying on the business of sale of motor parts. Its head office is at Madras. It has a branch at...