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2017 (4) TMI 341 - AT - Income TaxExpenses on brand building - whether is of capital in nature and accordingly not allowable as revenue expenditure? - Held that:- First ground is covered by the decision of the Co-ordinate Bench of the Tribunal in assessee’s own case for previous AY 2009-10 held that expenditure incurred on brand building was revenue in nature. Thus, under these facts and circumstances of this case and in view of the clear position of law as discussed above, we hold these expenses are revenue expenses and direct the Assessing Officer to treat the same as such and allow the same and, therefore, we delete the disallowance made by the Assessing Officer. Addition under section 14A read rule 8D - Held that:- We direct the AO to delete the disallowance on account of interest under rule 8D(2)(ii) in toto and so far as the disallowance under rule 8D(2)(iii) is concerned, the investments made in the sister concerns are of strategic nature are also required to be excluded while calculating the disallowance under rule 8D(2)(iii) of the Rules. We, therefore, direct the AO to rework the disallowance under rule 8D(2)(iii) after excluding strategic investments and accordingly the ground raised by the assessee is allowed. Additional depreciation allowed Interest was payable under section 234B - Held that:- It was nobody's case that the assessee had committed a default in payment of advance tax when it actually paid it, the assessee could not be held liable to pay interest under section 234B. Insofar as the observations in the order of the Tribunal, that the assessee should have anticipated the events that took place in March, 1992, were concerned, they had no substance. It was rightly submitted that it was not possible for the assessee to anticipate the events that were to take place in the next financial year and pay advance tax on the basis of those anticipated events. It was to be held that in the facts and circumstances of the case it is not justified in law in holding that the interest was payable under section 234B
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