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2018 (2) TMI 1083 - AT - Income TaxAllowability of expenditure in advertisement - nature of expenditure - revenue or capital expenditure - Held that:- When the assessee incurred expenditure in the course of earning profit, whether mere facilitating the assessee in carrying out trading operations or the business in a more effective manner, then the expenditure is only on the revenue account. A mere incidental benefit or enduring benefit or commercial advantage cannot result in disallowing the claim of the assessee. In the case before us, the assessee incurred expenditure in making advertisement in respect of the products made by it and sale of the same. While making advertisement, the assessee has to necessarily display the brand. Even though there is incidental increase in value of brand by way of advertisement made by the assessee, the real benefit is only to carry out the business in an effective and profitable manner. The expenditure incurred by the assessee is in the course of earning of profit without touching the capital asset. In view of the above, this Tribunal is of the considered opinion that the expenditure incurred by the assessee is only revenue in nature. See Alembic Chemical Works Company Limited [1989 (3) TMI 5 - SUPREME Court] - Decided against revenue.
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