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2018 (12) TMI 755 - ITAT DELHIDisallowance of business expenditure on publicity - nexus with business - Held that:- The expenses were incurred during the period January, 2007 to March, 2007 towards the promotion of Times of India, Kannad Edition launched in 2007 and the expenses were accounted for in the month of March, 2007. A.O. in the remand report did not doubt the genuineness of the expenses incurred by the assessee. Further, the authorities below found that it is capital in nature because it provides enduring benefit to the assessee. This question is answered in the case of CIT vs. Berger Paints (India) Ltd.,[2002 (2) TMI 97 - CALCUTTA HIGH COURT] in favour of the assessee. Considering the nature of business of assessee and that expenses in question were incurred for earning business income, therefore, it was not capital in nature and would not provide any enduring benefit to the assessee. The assessee submitted before A.O. that income on this account has been accounted for during the year itself. The submissions of assessee has not been disputed by the authorities below. Therefore, on the same Head when income is offered for taxation and expenses are incurred to earn the income, therefore, such expenses were clearly revenue in nature. The authorities below have failed to point-out as to which capital have been generated out of incurring these expenses. - Decided in favour of assessee.
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