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2013 (2) TMI 474 - HC - Income TaxExpenditure incurred on hired space on hoardings – Whether expenditure incurred on hired space on hoardings would come under section 37(3A) read with sub-section (3B), despite the fact that rentals are allowance under section 30 of the Act ?– Assessee claimed deduction of (i) expenditure incurred on hired space on hoardings, and (ii) expenditure incurred on statutory advertisement like printing of technical data sheets, printing of stationery, etc., under the general head of advertisement and publicity. – Held that:- If the assessee is a tenant in occupation of a premises for the business or profession, the rent paid for such premises and the cost of repairs incurred, if any, shall be allowed to be deducted. Crucial words in section 30 are "use of the premises for the purpose of business or profession". By no stretch of imagination, it can be inferred that the hire charges paid for advertisement hoardings would also come within the ambit of use of the premises for the purpose of business. Section 30 has nothing to do with advertisement, publicity or sales pro-motion. Giving very plain meaning of the language in section 30, it has to be construed as dealing with the deduction of rent, rates, taxes, repairs and insurance paid for the premises used for the business or profession either as a tenant or otherwise as a tenant. It does not take within its fold expenditure incurred for advertisement or publicity. If section 30 is interpreted as also allowing deduction of the hire charges for the space for the purpose of advertisement, it would amount to supplying casus omissus. The expenditure under the head expenditure incurred on hired space does not come within the purview of publicity, advertisement or sales promotion. Section 37(3A) read with sub-section (3B) is very specific that it is only the expenditure incurred for advertisement, publicity and sales promotion which are to be given ordinary meaning. Mere hiring a on hoardings cannot be treated as expenditure for advertisement or publicity or sales promotion - In favour of the Revenue
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