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2019 (6) TMI 471 - AT - Income TaxDisallowance of amortised expense of loaner set - revenue or capital expenditure - HELD THAT:- A decided in assessee's own case [2017 (4) TMI 293 - ITAT DELHI] treating loaner sets expenditure as capital expenditure was not in accordance with law and therefore, directed to be deleted. Disallowance of 50% of advertisement and sales promotion expenses - HELD THAT:- A decided in assessee's own case [2017 (4) TMI 293 - ITAT DELHI] once the genuineness of the expenditure is not in dispute, the commercial expediency cannot be rejected on the ground of suspicion. No material was led by the revenue to allege that the expenditure incurred in the course of business is not an eligible expenditure. We accept the contention of the Ld. counsel that it is not possible to get receipt of keychains either from the doctors or distributors distributed for the purpose of development of the business of the assessee. The entire action of the authorities below is based on suspicion and therefore found untenable Disallowance of 4/5th of the recruitment and training expenses - HELD THAT:- No asset was created by incurring expenditure on recruitment and training and, therefore, there was no reason for treating this expenditure as capital expenditure. The finding of the Assessing Officer has not been found by the Ld. CIT-A in accordance with accounting principles. He also found the disallowance made by the Assessing Officer against the principle of consistency. Disallowance of conference expense - HELD THAT:- Expenditures have been incurred towards convention expenses, education support expenses, seminar sponsorship fees, symposium/ workshop expenses. We find that this issue, on similar factual matrix is covered by the order of the Tribunal for AY 2011-12. The Tribunal has concluded the matter in assessee’s favor by following the judgment of this Tribunal rendered in India Medtronics Pvt. Ltd [2018 (1) TMI 1033 - ITAT MUMBAI]. Since nothing on record suggest any change in nature of expenditure, respectfully following the binding judicial pronouncements, we delete the impugned additions. This ground stands allowed. TP Adjustment - Advertisement, Marketing and Promotion ('AMP') expenses - HELD THAT:- We concur with the submissions that this issue is covered in assessee’s favor by the order of Tribunal for AY 2009-10 wherein held that in the absence of any agreement, these transactions would not constitute international transaction. This decision has subsequently been followed in AY 2011-12. Facts & circumstances being pari-materia the same, respectfully following the consistent view of the Tribunal, we hold that in the absence of any agreement between the assessee and its AEs, these transactions could not be termed as international transactions and accordingly, could not be subject to determination of ALP. By deleting impugned additions, this ground stands allowed. Allowable business expenditure u/s 37(1) - expenditure towards purchase of gift card of Reliance Digital Retail Ltd. - HELD THAT:- We are of the opinion that additions could not be made on mere allegations or presumptions. No doubt, the onus was on assessee to prove that the aforesaid expenditure fulfills the conditions as envisaged by Section 37(1). It appears that no details, in this regard, has been submitted by the assessee and no record has been maintained to show as to whom these cards were issued. Nevertheless, keeping in view the principal of natural justice, we remit this matter back to the file of Ld. AO for re-adjudication with a direction to the assessee to substantiate his stand, in this regard. This ground stand allowed for statistical purposes. The appeal stands partly allowed.
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