TMI Blog2015 (12) TMI 908X X X X Extracts X X X X X X X X Extracts X X X X ..... of Kedarnath Jute Manufacturing Co. Ltd.(1971 (8) TMI 10 - SUPREME Court) which was reiterated in case of Taparia Tools Ltd. (2015 (3) TMI 853 - SUPREME COURT ) as well. - Decided against revenue - Tax Appeal No. 876 of 2015 - - - Dated:- 30-11-2015 - Akil Kureshi And Mohinder Pal, JJ. For the Appellant : Mrs Mauna M Bhatt, Adv ORDER ( Per : Honourable Mr. Justice Akil Kureshi ) 1. Revenue has challenged the judgement of Income Tax Appellate Tribunal dated 24.4.2015 presenting the following question for our consideration : Whether the Appellate Tribunal has substantially erred in law in upholding the CIT(A)'s order deleting the disallowance/additions of deleted revenue expenditure? 2. Brief facts are that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e expenditure in a given year would prevent the correct picture of profitability of the assessee to emerge. Expenses on sales promotion publicity leads to creation of sales network, development of goodwill among the customers and therefore the benefits accruing out of such expenses are clearly available to the assessee over the period of time. Similarly, stores set up expenses given enduring benefit in the sense that their value essentially go into the stores so setup and can be taken to be yielding benefits over the life of the stores. The fact that the assessee itself is writing off the expenses over various years clearly shows that the assessee is aware of the fact that such expenses yield long term benefit and are essentially pertaini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o referring to Kedarnath Jute Manufacturing Co. Ltd. v. Commissioner of Income Tax reported in (1971) 82 ITR 363(SC). 5. We do not see any question of law arising. This Court in case of Core Healthcare Ltd.(supra), held that advertisement expenses to create brand image is revenue in nature. Following observations were made : 14. In relation to the first item, namely, advertisement expenses, it is not in dispute that the expenditure of ₹ 70 lakhs and odd was incurred on a special advertisement campaign. However, that by itself would not be sufficient to determine as to whether the expenditure in question is on revenue account or capital account. The approach of Commissioner (Appeals) that the expenditure in question was treated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lay down that the nature of advantage has to be considered in a commercial sense and the test of enduring benefit is not a certain or conclusive test and cannot be applied blindly and mechanically without regard to the particular facts and circumstances of a given case. The expression asset or advantage of an enduring nature has been evolved to emphasise the element of a sufficient degree of durability appropriate to the context. The idea of once for all payment and enduring benefit are not to be treated as something akin to statutory conditions. 16. Applying the aforesaid settled legal position to the facts of the case, it is not possible to agree with appellantRevenue that the advertisement expenses incurred by respondent assessee a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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