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2011 (6) TMI 326 - AT - Income TaxDisallowance - Advertisement and publicity expenses - section 40A(2) of the Act - the assessee incurred the expenditure as per the agreement entered into with the foreign principals and earning of income therefrom is subject to the condition of incurring expenditure on advertisement and thus it has to be considered as amount spent wholly and exclusively for the purpose of business - held that:- the Apex Court in the case of Sassoon J. David & Co. Ltd. & Co. Ltd. v. CIT [1989 -TMI - 23844 - BOMBAY High Court], merely because a third party is benefited by virtue of such expenditure, it cannot take the case out of the purview of section 37(1) of the Act - Assessing Officer has not disputed the fact that subscription fees/distribution revenue is not fixed but variable and depends upon the popularity and viewer-ship of the channels in which event it has to be assumed that the expenditure on advertisement is intimately connected to the revenue earned by the assessee - Decided in favour of assessee.
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