9911796707
TMI Blog2012 (7) TMI 541X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 crores. The return of income was filed declaring original income at Rs.49,08,100/- on 02.12.2003. The assessment was completed u/s 143(3) on 22.03.2005 at an income of Rs.52,44,787/-. A notice u/s 148 was issued on 29.03.2010 and the reassessment u/s 143(3)/147 was completed on 30.08.2010. In this assessment, an addition of Rs.35,45,581/- was made on account of not allowing as revenue expenditure of the purchase of tin plates for advertisement and publicity debited in the profit and loss account. The assessee filed appeal against this addition and also challenged the reopening proceedings before the CIT (A). The CIT (A) uphold the reassessment but granted relief to the assessee on merits of addition by holding as under :- "5.1 I have ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al material printed on it. It is argued that considering the sales all over India, the tin plates are printed in different languages and given to dealers of concerned states for pasting on the rickshaws. It is argued that the life span of a tin plates is less than one year and that is why it is given to the dealers every year. It is argued that since the tin plates are already given to the dealers for advertisements, the same are no longer the property of the company and hence cannot be treated as capital asset. The Id. AR has relied upon the decision in the case of CIT v. Liberty Group Marketing Division 315 ITR 125 (P & H) where in the context of neon sign and glow sign boards under similar facts it was held by the Hon'ble High Court that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hrough its dealers all over India. The perusal of the paper book available on record shows that individual cost of each plate comes around Rs.17.05. This fact is evident from the copy of the bills available on record. These tin plates are printed in various languages at various places and the same were for advertisement and these plates were fixed on the rickshaws at various places. These plates were for advertisement and publicity of the product manufactured by assessee and sold through the network of dealers all over India. The turnover of the company during the relevant period was around Rs.200 crores. The authorized dealers were located in various parts of India. These tin plates were distributed to various dealers. They have placed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer has asked justification for the admissibility of the expenditure including the tin plates expenditure. However, in the reply to this query, it is placed at page 2 & 3 of the paper book, nothing has been stated with regard to the tin plates expenditure. Further there is nothing mentioned in the assessment order itself about this expenditure. The record shows that the reassessment proceedings have been initiated by getting the necessary approval from the Commissioner, Delhi-V, New Delhi after recording the reasons which were supplied to the assessee for filing the objection. Therefore, in our considered view, the Assessing Officer while finalizing the initial assessment has not applied his mind. No discussion has been made about this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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