...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..., 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.... Some of the shareholders and directors of the company having felt that the scale of remuneration paid to the managing agent was extraordinarily excessive and unusual, negotiations were started for a...

...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...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...non-cumulative preference shares and no dividend has been declared by Hero Investments P. Limited for the year under consideration. It is held that the case of McDowell and Co. Ltd. v...

...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...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..., 1961:“Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the sum of Rs. 34,100 paid by the assessee to the Indian Cotton...

...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 ...acquisition of assets which are not of lasting value and are likely to get exhausted or consumed in the process of the return or a very limited number of returns.Coming to the facts of the...question was 1943-1944 and the financial year was 1942-1943. The assessee was a registered firm, Messrs Jagat Bus Service, Saharanpur. It carries on the business of running motor cars, buses and...

...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 a...1. The Income-Tax Appellate Tribunal (Delhi Bench 'A') (hereinafter referred to as the Tribunal) has drawn up the statement of the case and referred the following question of law to this...

...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...Corporation, it is provided that, in respect of employees, who are divided into two classes, an amount equal to 8 1/3 per cent. of the salary in the case of Class I and 5 per cent, in the case of Class...

...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...facts and in the circumstances of the case, the amount of Rs. 1,09,191 paid by the assessee to Brotherhood Limited represented expenditure of a capital nature ?4. If...amount of Rs. 1,09,191.2. The assessee is a public limited company manufacturing turbines and other machinery. The four assessment years with which we are concerned are...

...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...seasons of the year. The Club does not own any horses, nor does it employ any jockeys. It only holds race meetings. At those meetings, horses are run by persons who own them and they are ridden by jockeys...who are employed by the owners. The Club has thus no direct concern with horses or jockeys. Nevertheless, it is important to the Club that jockeys of the requisite skill and experience; should be...

...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 ...changes in the law are given in the report, pp. 26 et seq. In effect, a position had been reached, owing largely to the growth of limited companies and the practice of operating through subsidiaries...

...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...

...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 ...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...Limited and to Richard Tilden Smith's administrator 12½ per cent. thereof each, or 25 per cent. in all. The assessment of the appellants' income for tax purposes for the fiscal year to March 31, 1934, was...

...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, ...Kaleswarar Mills Limited v. Sakthivelu and others reported in 12 F. J. R. 279, where it is held that where the Industrial Tribunal has ascertained the real dispute between the parties and has..., 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...

...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...

...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...

...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...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...Act, 1961 :"Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the sum of Rs. 34,100 paid by the assessee to...

...noticed that the principle evolved by the House of Lords in Atherton v. British Insulated & Helsby Cables Ltd. (1925) 10 TC 155, has been approved and applied by the S...?”3. The Respondent/Assessee, a Private Limited Company is carrying on business of real estate development and construction. It had filed its Return of Income for the Assessment year 2009-10....14. Learned counsel for the Assessee has placed strong reliance on the judgment rendered by the Supreme Court in S.A Builders Limited v. Commissioner of Income Tax (Appeals) Chandigarh and Hero...

..." includes expenditure voluntarily incurred for commercial expediency, and it is immaterial if a third party also benefits thereby. 21.Thus, in Atherton .vs. British Insulated & Helsby .... 2. The assessee is a public limited company carrying on the business of manufacture and sale of beer and liquor. In other words, the assessee is in the line of brewery business. The...assessee company in furtherance of its business started the business of establishment of resorts by incorporating the company under the name and style "UB Resorts Limited". There is a direct nexus...

...that the payment of Rs. 15,000 to Mrs. Hartly is an expenditure coming within section 5(j) of the Act. In Atherton v. British Insulated & Helsby Cables Limited 1925 10 Tax Cas. 155.... The assessee is the Teekoy Rubbers (India) Limited, Palai. The assessment year concerned is 1960-61; and the accounting period, the twelve months ended on March 31, 1960. The question referred is...:“Whether, on the facts and in the circumstances, the following gratuity payments made by the applicant-company are allowable:(a) Gratuity of Rs; 15,000 paid to the widow of...