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TMI Blog2015 (11) TMI 1193X X X X Extracts X X X X X X X X Extracts X X X X ..... has erred in deleting the addition made on account of advertisement expenses being capital in nature Rs. 13,06,184/-. 2. On the facts and circumstances of the case, the Ld. CIT(A) has erred in deleting the addition made on account of recruitment and training expense being capital in nature Rs. 6,60,826/-." 2. Facts necessary for the disposal of these appeals are stated in brief. The assessee is engaged in the business of retail trading of mobile handsets and other electronic items and their accessories and also carrying repair works. For the year under consideration, the assessee declared loss of Rs. 38.42 crores whereas AO computed the loss at Rs. 38.22 crores wherein he made the following disallowances: (i) 25% of advertisement and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... could have resulted in any intangible asset. Every expenditure incurred by a business concern, if incurred for the purpose of business, is bound to result in either direct or indirect benefit immediately or after some time and merely because assessee may be benefited after sometime, it cannot be termed as capital expenditure. The impugned expenditure was incurred by the assessee to make the customers aware of the existence of such product and incentive schemes applicable on purchase thereof. The carry bags, in all probability, will be thrown away after sometime and hence, there is no question of any enduring benefit coming therefrom to the company. Reliance was placed upon several case law, including that of Hon'ble Delhi High Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... does not survive and accordingly, the claim of depreciation thereon was rejected. 7. With regard to recruitment and training expenditure, the case of the AO is that the assessee gets benefit of enduring nature as it enhances the manpower capital of the assessee. The assessee relied upon several case law, apart from the facts on record, to submit that under no stretch of imagination the expenditure incurred on recruitment and training can be said to have given the assessee benefit of enduring nature and if at all it is to be treated as capital in nature, there should have been allowance of depreciation @ 25%. 8. Here also, Ld. CIT(A) followed his own decision in the assessee's own case for the immediately preceding year i.e. Assessment Yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Financial Ltd. 20 Taxman.com 462, Spice Communications Lt. 35 SOT 78, Pepsico India Holdings (P) Ltd. 21 Taxman.com 165. It is submitted that under identical facts and circumstances Delhi Bench of Tribunal as well as Hon'ble Delhi High Court have taken a view that the expenditure incurred by the assessee on advertisement having been treated partly as revenue in nature balance 25% should not have been treated as deferred revenue expenditure and it is allowable in the year in which it was incurred. In the light of decision of ITAT in assessee's own case as well as decision of Hon'ble Jurisdictional High Court, we have no alternative except to hold that the order passed by Ld. CIT(A) is in accordance with law being in consonance with the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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