Disallowance of expenditure on advertisements in souvenirs - Income Tax - 203/1976

Disallowance of expenditure on advertisements in souvenirs Circular No. 203 Dated 16/7/1976 To All Commissioners of Income-tax. Sir, Subject: Disallowance of expenditure on advertisements in souvenirs Reference is invited to Board's Circular No.200 See page 50 supra. dated the 28th June, 1976, by which it was clarified that no distinction need be drawn between expenditure on advertisements in souvenirs and other types of advertisements. 2. A question has been raised as to whether an assessee can resort to publicity in more than one souvenir published by the same institution/organisation. Souvenira are one of the recognised media of publicity. A businessman can advertise in more than one newspaper or magazine and also in more than one issue of the same newspaper or magazine. Expenditure on such advertisements will qualify for deduction under section 37(3) of the Income-tax Act, 1961, read with ruld 6B of the Income-tax Rules,1962. Similarly, if advertisements have been released in more than one souvenir published by the same organisation, deduction in respect of such publicity will be admissible provided the aforesaid conditions are satisfied. Yours faithfully, (Sd.) T.P. Jhunjhunwala, SECRETARY, CENTRAL BOARD OF DIRECT TAXES.