TMI Blog2009 (2) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... s in respect of an ongoing business and there is no enduring benefit it can be treated as revenue expenditure - Since expenditure was in respect of promoting ongoing products of the assessee, they are held as by way of revenue expenditure - 789 of 2008 with 1280 of 2005 - - - Dated:- 9-2-2009 - F.I. REBELLO and R.S.MOHITE, JJ. Mr. Suresh Kumar for the Appellant. Ms. Shobna Jagtiani with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner of Income Tax Vs. Patel International Films Ltd., 102 ITR 219. 2. The Respondent assessee has incurred expenditure on film production by way of advertisement for the marketing of products manufactured by them. It was their submission that these expenses are purely of revenue nature and they derive no enduring benefit to the company. They only will help the company to make the custo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o hold that no capital or right or benefit of enduring nature had been created or acquired by the assessee by production of the advertisement film. The Tribunal noted that the assessee to keep mass interest in its products has to continuously strive to keep on advertising its products in ever increasingly novel ways and methods, through the media and as such the expenditure incurred on the product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee-company was a capital asset to be used for the purpose of advertisement of the business that the assessee-company was going to carry on in future and, therefore, the expenditure will have to be regarded as a capital expenditure and not revenue expenditure." It would, thus be clear that the machinery purchased was not in respect of an on going business of the assessee, but in respect of the bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of business which is yet to commence then the same cannot be treated as revenue expenditure as expenditure is on a product yet to be marketed. Considering the above, in our opinion the judgment in Patel International Films Ltd. (supra) is clearly distinguishable. The C.I.T. (A) and the Tribunal on the facts of this case were clearly within their jurisdiction in holding that the exp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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