Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (3) TMI 87 - AT - Income TaxNature of expenses - advertising expenses - Revenue or capital expenditure - whether the above expenses were revenue in nature in view of the fact that these expenses would essentially lead to establishment and promotion of “Livpure” brand in India? - HELD THAT:- There is no denial to the fact that these expenses have been incurred to increase the awareness and popularity of the “Livpure” brand and to enhance the profit and revenue for the Assessee in long run. Thus these expenses have given enduring benefit to the Assessee and cannot be said to have incurred on “revenue account” wholly and exclusively for the purposes of Assessee’s business. We observe that there are so many heads of expenses which the Assessee has claimed to have been incurred. AO though gone into the legality/status of the expenditures but without bifurcating different heads of the expenditures treated all the expenditures as “capital in nature” and therefore in our view determination qua nature of different head of expenditures has not been done properly and in real sense. Assessee also did not file proper details/heads of the expenditures incurred and in lump sum claimed the said expenditure as “revenue in nature”. Hence, we are inclined to remand the instant case to the file of the Assessing Officer for decision afresh, suffice to say, by affording reasonable opportunity of being heard to the Assessee. Assessee is also directed to produce the bifurcated details and documents in relation to the expenses incurred on account of advertising and publicity expenses as claimed. Further, the primary onus would be upon the Assessee to establish the nature of the expenses before the Assessing Officer. Appeal filed by the Assessee stands allowed for statistical purposes.
|