TMI Blog2015 (6) TMI 840X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee - CIT(A) deleted the disallowance - Held that:- There was no infirmity in the order of the CIT(A), who relied on the ratios laid down by the Hon’ble Supreme Court in the cases of Empire Jute Co. Ltd. vs CIT [1980 (5) TMI 1 - SUPREME Court] and Alembic Chemicals Works Company Ltd. vs CIT, [1989 (3) TMI 5 - SUPREME Court] - Decided in favour of assessee. - ITA No. : 2356/Del/2010,ITA No. : 4903/Del/2010 - - - Dated:- 13-2-2015 - Shri R.C. Sharma And Shri Vivek Varma JJ. For the Appellant : Shri Pavan Kumar Beerla For the Respondent : Shri J D Mistry Shri Nitesh Joshi ORDER PER VIVEK VARMA, JM: The appeals are field by the department against the orders of CIT(A)-X, Delhi, dated 18.02.2010 30.08.2010 res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 20.11.2014. 5. Since the issues in both the captioned appeals are common, we are disposing off the appeals through this common and consolidated order for the sake of convenience and brevity. Asst. Year 2005-06 : 6. We proceed with appeal for assessment year 2005-06, being the lead year. 7. The assessee is a company and is in the business of sales and distribution of vaccines imported from other countries, primarily from France. 8. In the course of assessment proceedings, the AO treated expenses incurred on advertisement at ₹ 7,96,873/- as capital in nature being 30% of ₹ 26,56,245/- as it would give enduring benefit to the assessee. 9. The assessee took the issue before the CIT(A), who after going through the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital or revenue a judicial fetish. The Supreme Court also observed that the once for all payment test is also inconclusive. What is relevant is the purpose of the outlay and its intended object and effect, considered in a commonsense way having regard to the business realities. The Supreme Court also noted that in a given case, the test of enduring benefit might break down. 2.9 The allegation of the Ld. AO that such expenditure results into brand building of the Appellant Company and its parent company is also of no consequence as it is merely a theoretical argument as held by various recent judicial pronouncements. 2.10 Moreover, the Ld. AO has failed to point out as to why the figure of 30 percent of expenditure has been treated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sr.No. Particulars Amount 1 Laptop Battery 17,290 2 Laptop Battery 22,754 3 USB Port 8,100 4 USB Port 12,150 5 Backup Tape Drive 99,600 6 Network Switch 109,200 7 1150 HP Laser Jet Printer 17,000 8 1150 HP Laser Jet Printer 17,000 9 T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reover, the legislature could not have intended to provide a higher rate of depreciation only for a monitor and a central processing unit (CPU) without allowing the higher rate of depreciation on the peripheral equipments which forms part of a wholesome computer system. Without these peripheral equipments, a computer system would become a dumb device and would not be of any use for a prudent person. 4.7 It has also been stated that the issue has been settled by the Hon'ble Delhi Tribunal in the case of Expeditors International India (P) Ltd. vs Addl. CIT 118 TTJ 652, wherein it has been held that the peripherals such as printers, scanners, NT server, etc. form integral part of the computer and the same, therefore, are eligible for de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tain. As a result, the ground of appeal, as filed by the department is rejected. 25. Ground no. 3 is general in nature. 26. As a result, the appeal as filed by the department is dismissed. Asst. Year 2006-07 : 27. The issue is identical to ground no. 1 in ITA No. 2356/Del/2010. 28. In the year under consideration, the AO allowed ₹ 48,46,934/- i.e. 25% of ₹ 1,93,86,935/- (i.e. ₹ 1,96,21,862 - ₹ 2,34,927), whereby he arrived at the figure of ₹ 1,45,40,201/-. 29. In the preceding year, we have held that advertisement expenses are revenue in nature by following the decisions of Hon ble Supreme Court in the cases of Empire Jute Co. Ltd. (supra) and Alembic Chemical Work Co. Ltd. (supra). 30. Since the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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