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2011 (10) TMI 194 - AT - Income TaxFBT - Audio Music system, Television set, watches etc... to be treated as "Sales Promotion and Publicity" Expenses and taxed at 20% or be treated as "Gift" and taxed at 50% - Held - Gift is anything without consideration but in the present case various items were given in terms of trade scheme depending upon sales targets achieved by stockiest/ dealers. CBDT circular which are not in confirmity with statute cannot be relied upon. A specific provision has been made in regard to sales promotion and publicity expenses then it will override the general provision relating to gift. Therefore, expenditure on sales promotion including publicity would fall within the scope of the specific provision in clause (D) and not clause (O). We therefore, hold that the expenditure on gifts could not be treated as trade scheme or for promotion of company's product as per clause O of sub-section 2 of section 115WB. Appeal was allowed for statistical purpose.
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