TMI Blog2020 (6) TMI 340X X X X Extracts X X X X X X X X Extracts X X X X ..... or the Appellant : Ms. Parmita M. Biswas, CIT DR For the Respondent : Sh. Salil Aggarwal, Adv And Sh. Satish Gupta, Adv ORDER PER SUCHITRA KAMBLE, JM This appeal is filed by the Revenue against the order dated 13/6/2017 passed by CIT(A)-37, New Delhi for Assessment Year 2013-14. 2. The grounds of appeal are as under:- 1. Whether on facts and in circumstances of the case, the Ld. CIT(A) is legally justified in deleting the disallowance of expenditure of ₹ 11,41,12,337/- incurred on advertisement and sales promotion of product, brand promotion, development of market and customer relations made by the Assessing Officer (the AO) being capital in nature, by ignoring a fact that the expenditure was incurred on d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tising and sales promotion expenses is treated as capital in nature. The Assessing Officer further held that the nature of these expenses is not depreciable and thus, disallowed the depreciation claim on this expense. 4. Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) allowed the appeal of the assessee. 5. The Ld. DR relied upon the Assessment Order and submitted that the Assessing Officer rightly disallowed the claim of the assessee as these expenses incurred in the initial stage of the commencement of the business of the assessee and it is going to give enduring and long term benefits to the assessee. Thus, it is capital in nature. The Ld. DR further submitted that the depreciation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wed by AO Appeal is pending before CIT(A) N.A N.A 5 2012-13 128604197 Disallowed by AO Allowed by Ld. CIT(A) Departmental Appeal dismissed by Hon ble ITAT before ITAT No appeal preferred by Department in High Court 6 2013-14 114112337 Disallowed by AO Allowed by Ld. CIT(A) Impugned Appeal N.A Thus, the Ld. AR submitted that the issue is decided in favour of the assessee at the appellate stage by the Tribunal and the Hon ble High Court. Therefore, the Ld. AR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eant to create an asset i.e. brand of an enduring nature and thus, fell in the capital stream. The CIT(A) disagreed and set aside the AO s decision. The ITAT affirmed that judgment. Learned counsel relied upon the judgment in Empire Jute Co. Ltd. vs. Commissioner of Income Tax, (1980) 124 ITR 1 (SC) to say that the ratio of that judgment fairly implies to lead to conclusion that the high degree of expenditure in this case and disallowed by the AO, actually meant creation of an asset or resulted in an enduring capital advantage to the assessee. This Court is of the opinion that the concurrent findings on the question urged, are justified. As to the nature of advertising expenditure, the pointed decision of the Court in Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X
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