TMI Blog1979 (3) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... ublic limited company and carries on business of manufacture and sale of beer, Indian made foreign liquor, malt, food articles and soft drinks, and has its business branches in various parts of the country. For the furtherance of its business, the assessee advertises some of its goods by installing neon-signs. For the assessment year 1968-69, the assessee had claimed the deduction of the advertisement expenditure amounting to Rs. 37,005 and for the assessment year 1969-70, it has claimed a deduction of similar nature for the amount of Rs. 29,036. These deductions have been claimed under sub-s. (3) of s. 37 of the IT. Act. It transpires that with regard to the assessment for the prior years the assessee was given deduction only for the expen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e facts and in the circumstances of the case, the Appellate Tribunal was right in law in disallowing the expenditure of Rs. 37,005 and Rs. 29,036 for the assessment years 1968-69 and 1969-70, respectively, representing the cost and installation charges of neon-signs put up for advertising the products of the company at different places in various towns in India, including those at the dealers' premises ? " It is not in dispute that the expenditure in question is incurred by the assessee on advertisement. In fact, the assessee itself has claimed this expenditure as the one incurred on advertisement and the department has also treated the same as such. The Tribunal has rejected the deduction on the ground that the same cannot be allowed be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... obvious from the provisions of sub-s. (3) quoted above that it contemplates an altogether separate and distinct head of deduction, namely, expenditure on advertisement. It is further clear that this deduction on account of expenditure on advertisement is admissible " notwithstanding anything contained in sub-section (1) ". The use of the non obstante clause in sub-s. (3) clearly excludes the considerations which are contemplated by sub-s. (1) of s. 37. It, therefore, follows that if once it is found that a particular deduction can be claimed as on account of expenditure on advertisement the said deduction squarely falls within sub-s. (3) and that being so the question whether the said expenditure is of capital nature or of revenue nature fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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