Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 1881 - AT - Income TaxCapitalization towards cost of advertisement film library - capitalization of such revenue expenditure in the balance sheet and its consequent amortization over a period - claim of deferred revenue expenditure made by the assessee - HELD THAT:- The assessee in the business of sky teleshopping, it is but natural that it will develop programmes for Television to market its products. The expenses as incurred, therefore, are clearly for the development of marketing products, to be sold through television programmes. The preparation of account as per Companies Act envisages the concept of deferred revenue expenditure but as per IncomeTax Act, expenditure is either in revenue field or in the capital field. The fact, that the assessee offered back the amount amortized in the computation of income in order to claim a total deduction u/s 37(1) of the I T Act 1961 is acceptable as the expenditure is, in respect of an ongoing business and so the decision of Jurisdictional High Court in the case of CIT vs Geoffrey Manner & Company Ltd [2009 (2) TMI 13 - BOMBAY HIGH COURT] is binding. The above judgment, as noted, has held that the expenditure incurred by the assessee, on production of film by way of advertisement for promoting and marketing of products manufactured by it in respect of ongoing business is allowable as revenue expenditure. - Decided against revenue Disallowance towards input Service Tax - as per CIT-A expenditure has been claimed only once and that in the year it has incurred. The addition made by the Assessing Officer is, therefore, deleted - HELD THAT:- CIT(A) appreciated the factual aspect and gave a finding on facts, which in our opinion does not deserve to be disturbed. We, therefore, sustain the view of the CIT(A), thereby, rejecting the ground of appeal, as raised by the department.
|