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2015 (2) TMI 817 - HC - Income TaxSample distribution expenses - Tribunal allowing deduction of expenses in terms of section 37(1) - Held that:- The Commissioner of Income-tax (Appeals) and the Tribunal had recorded a finding that the assessee-company was an export trading house and had distributed carpets and shawls as samples during the year. It was further noticed that these items were exported by the assessee in the subsequent assessment years 2005-06 and 2006-07. The samples distributed were not extraneous to the business of the assessee. Furthermore, the samples were given to the foreign agents in person during their business exploratory visit in India and the same would fall under the expenditure laid out or expended wholly and exclusively for the purpose of such business. Thus the Commissioner of Income-tax (Appeals) and the Tribunal were right in allowing deduction on account of expenditure on free sample distribution by the assessee. - Decided in favour of the assessee.
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