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2015 (6) TMI 250 - HC - Income TaxDisallowance of management fee - CIT(A) allowed the claim - Held that:- As to whether the expenditure was wholly laid out for the business purpose and was driven by commercial expediency cannot be viewed from a narrow lens of revenue officer's perspective. The element of business activity or expenditure cannot be subjected to objective reasonable standard as the AO sought to impose upon it. To that extent, the CIT(Appeals) decision, in the considered view of this Court cannot be faulted. Since the ITAT reconsidered these aspects, no question of law arises - Decided against revenue. Disallowance of advertising expenditure - CIT(A) allowed the claim - Held that:- AO allowed depreciation only to the tune of 25% and disallowed ₹ 21,56,211/-. The CIT(A) took note of the judgment of the Supreme Court on how capital expenditure had to be treated (Empire Jute Co. Ltd. V. CIT on 124 ITR 1, K.T.M.T.M. Abdul Kayoom V. CIT (1980 (5) TMI 1 - SUPREME Court). On this ground, the ITAT was of the opinion that the relief as claimed was warranted. So the ITAT too confirmed these findings. No substantial question of law is made out. - Decided against revenue.
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