TMI Blog2015 (2) TMI 732X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount of repairs and maintenance out of ₹ 2.94 cores is capital expenditure. This itself would be indication of application of mind by the Assessing Officer while passing the impugned order. The fact that the assessment order itself does not contain any discussion with regard to the balance amount of expenditure of ₹ 1.76 crores i.e. ₹ 2.94 crores less ₹ 17.98 lakhs claimed as revenue expenditure would not by itself indicate non application of mind to this issue by the Assessing Officer in view of specific queries made during the assessment proceedings and the Respondent-assessee's response to it. In fact this Court in the case of Idea Cellular Ltd. Vs. Deputy Commissioner of Income Tax & Ors., [2008 (2) TMI 146 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny itself has admitted that the expenditure was incurred for the creation of a brand 'Nirvana' that is an intangible asset ? (3) Whether on the facts and in the circumstances of the case and in law, the Tribunal erred in coming to the finding that the said expenditure was related to the conduct of the business whereas the expenditure in question related to the building up of the brand which was of a permanent character and not of routine revenue nature ? 3. The question nos.2 and 3 framed by the Revenue are mere facets of the issue raised in question no.1. 4. The respondent - assessee is in the business of manufacturing and export of jewellery. During the course of assessment proceedings, the respondent - assessee had clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #39;s submissions and held that the Assessing Officer had erred in allowing the expenditure incurred as miscellaneous expenses for creation of brand Nirvana as revenue expenditure. 6. In the appeal before the Tribunal, the respondent - assessee pointed out that letters dated 8.8.2008 and 24.11.2008 were issued by the Assessing Officer during the assessment proceedings seeking details in respect of the expenditure incurred for building brand Nirvana. The same was responded to by the respondent-assessee submitting the entire details. On examining the details submitted, the Assessing Officer held that an amount of ₹ 17.98 lakhs out of ₹ 2.94 crores alone was on account of capital expenditure. The Tribunal in the impugned order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of ₹ 17.98 lakhs incurred on account of repairs and maintenance out of ₹ 2.94 cores is capital expenditure. This itself would be indication of application of mind by the Assessing Officer while passing the impugned order. The fact that the assessment order itself does not contain any discussion with regard to the balance amount of expenditure of ₹ 1.76 crores i.e. ₹ 2.94 crores less ₹ 17.98 lakhs claimed as revenue expenditure would not by itself indicate non application of mind to this issue by the Assessing Officer in view of specific queries made during the assessment proceedings and the Respondent-assessee's response to it. In fact this Court in the case of Idea Cellular Ltd. Vs. Deputy Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
