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2012 (3) TMI 458 - AT - Income TaxAddition being 25% of advertising and marketing expenses, made by A.O. treating them in the nature of brand building -Held that:- The expenses are incurred wholly and exclusively for the business of the assessee and is not a capital expenditure nor a personal expense. No reasoning or basis has been given by the A.O. to disallow 25% of the expenses claimed as if the expenditure is capital in nature then depreciation should have been allowed and if the expense is being treated as deferred revenue expenditure then it is contrary to the settled legal position. In the facts as they stand the expenses incurred for brand building exercise of Spice brand has rightly been allowed as revenue expenditure by the CIT(A) relying upon the order of the Tribunal in a group companies case namely ITO vs. Spice Communications Ltd.[.................], we are fully in concurrence with the finding of the Coordinate Bench as advertisement etc. cannot be said to be a capital asset.
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