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2022 (8) TMI 1288 - AT - Income TaxNature of expenditure - advertisement and business promotion expenses - revenue or capital expenditure - HELD THAT:- Hon’ble Supreme Court in the case of Empire Jute Company [1980 (5) TMI 1 - SUPREME COURT] deleted the disallowance holding that the expenses incurred by the assessee towards advertisement and business promotion are not in the nature of capita We almost identical issue came up for consideration before the co-ordinate bench of the Tribunal in the case of Addl. CIT Vs. M/s. Jasper Infotech Pvt. Ltd. [2021 (12) TMI 443 - ITAT DELHI] wherein the co-ordinate bench considered whether the CIT (Appeals) is right in deleting the disallowance of 50% of expenses incurred on advertisement, publicity and business promotion incurred on brand building of e-commerce portal ‘Snapdeal’ considering the same as revenue expenditure and not capital expenditure We hold that the ld. CIT (Appeals) had rightly held that the expenditure incurred by the assessee on advertisement and business promotion are in the nature of revenue and not capital expenditure. Ground raised by the Revenue is rejected.
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