TMI Blog2013 (7) TMI 1088X X X X Extracts X X X X X X X X Extracts X X X X ..... mstances of the case and in law, the learned CIT(A) erred in restricting the disallowance u/s 14A at ` 5 lakhs without giving any basis. 2. On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in deleting the disallowance of ` 44,78,696 out of the total expenses of ` 55,98,370 on television commercials without appreciating the facts that the said expenditure has enduring benefits to the assessee. 2. The Assessing Officer has applied Rule 8D for making disallowance under section 14A, as per the working given at Page 2 of the assessment order. The learned Commissioner (Appeals) held that in view of the judgment of Hon'ble Jurisdictional High Court in Godrej Boyce Mfg. Co. Ltd. v/s DCIT, (2010), 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sequently, following the same, we restore the issue to the file of the Assessing Officer, who shall, on some reasonable basis, work out the disallowance, if any, after calling for the records from the assessee. The ground no.1 is, thus, treated as allowed for statistical purposes. 6. In ground no.2, the Revenue has challenged the deletion of disallowance of ` 44,78,696, out of the total expenditure of ` 55,98,370, on television commercial. 7. The Assessing Officer noted that the assessee has incurred advertisement expenses of ` 55,98,370, on production of TV commercial. He held that such commercials have enduring benefit and, hence, is a capital expenditure. Accordingly, 20% of such expenditure was allowed in this year and the balance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n to advertise the product and services provided by the assessee. These expenditures are only revenue in nature. The case law relied upon by the assessee before the learned Commissioner (Appeals) in Core Healthcare Ltd., 308 ITR 263 (Guj.) and Geoffrey Manners, 180 Taxman 87, also supports the same view that the expenditure incurred on film production by way of advertisement or marketing of products is allowable as revenue expenditure. Thus, we do not find any reason to deviate from the conclusion drawn by the learned Commissioner (Appeals) and, hence, decline to interfere in the matter as such. Accordingly, ground no.2, raised by the Revenue is dismissed. 11. In the result, Revenue s appeal is treated as partly allowed for statistical p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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