2016 (5) TMI 33

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..... quently, the appeals are admitted as far as this question is concerned and the question is answered in the negative i.e. in favour of the Revenue and against the Assessee. The impugned order of the ITAT to that extent is set aside. Expenditure incurred on brand creation - Held that:- Spread of the brand expenses over a period of five years was actually in the nature of deferred revenue expendit .....

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..... TA Nos. 5178/Del/2010 and 1846/Del/2012 for the Assessment Years ( AYs ) 2006-07 and 2008-09. 4. The two broad issues urged by the Revenue are: (i) Whether the ITAT erred in accepting the case of the Assessee that making a provision for breakage in transit amounts to provisioning for contingent liability? (ii) Whether the ITAT was justified in holding that the expenditure incurred on bran .....

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..... e Tax (Appeals) restricting the brand expenses to only 1/5th for the relevant AYs. The Assessing Officer ( AO ) held that the brand expenses were incurred for enhancing the image of the brand and thus created an asset of enduring value. Accordingly the expenditure was treated as capital in nature and disallowed. 7. The ITAT accepted the plea of the Assessee that the said expenditure incurred in .....

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