2022 (11) TMI 626 - HC - Income Tax
Disallowance of AMP expenditure u/s 37(1) - Revenue expenditure or capital expenditure - advertising and promotion of liquor in India - HELD THAT:- We are not persuaded by the contention of the learned counsel for the Revenue that the AMP expenditure incurred by the Assessee is capital in nature, the said contention is vague and unsubstantiated from the record. Revenue itself has treated the AMP expenditure incurred by the Assessee in the previous assessment years as a revenue expenditure.
ITAT while adjudicating the appeals of the Assessee for AY 2009-10 and 2010-11 has held that the AMP expenditure incurred by the Assesee was in the nature of bonafide business expenditure in furtherance of its legitimate business interests. Revenue has not assailed the said findings of ITAT in the appeals filed for the said assessment years. It is therefore, evident that Revenue’s contention that the AMP expenditure should be treated as capital expenditure is without any legal basis.