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TMI Blog2020 (4) TMI 826X X X X Extracts X X X X X X X X Extracts X X X X ..... d of by this common order. 2. The present appeals i.e. MAIT No.140/2007 and MAIT No.142/2007 have arisen out of the orders dated 30.03.2007 passed by the Income Tax Appellate Tribunal, Indore (for brevity "the Tribunal") in ITA No.615/IND/2005 (assessment year 2001-02) and ITA No.73/IND/2006 (assessment year 2002-03) respectively. 3. For the sake of brevity, the facts are taken from MAIT No.140/2007. The appeal was admitted on 30.11.2007 for determination of the following substantial question of law:- "(i) Whether in the facts and circumstances of the case the Income Tax Appellate Tribunal was justified in law in deleting the addition of Rs. 5,32,75,978/- made by the Assessing Officer on account of deferred Revenue expenditure?" 4. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee preferred an appeal before the learned Commissioner of Income (Appeals-I), Bhopal [for short "the CIT(A)]. The CIT(A) vide order dated 18.05.2005 (Annexure A-2) partly allowed the appeal of the assessee deleting the addition of remaining amount of Rs. 5,32,75,978/-. Dissatisfied with that order, the Revenue approached the Tribunal. The Tribunal by order dated 30.03.2007 (Annexure A-3) affirmed the decision of the CIT(A) and dismissed the appeal of the Revenue. Hence, the present appeal by the Revenue. 5. Learned counsel for the appellant submitted that the deduction in question was pertaining to the expenses incurred in advertisement, publicity and sales promotion etc. of the business which would be giving continuing benefit to the busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as such, it has to be allowed in the year under consideration in which it was incurred wholly and exclusively for the purpose of business. Learned counsel could not point out any perversity or illegality in the findings recorded by the Tribunal and therefore, no interference is called for on that ground raised by the appellant in these appeals. 9. Examining the case law relied upon by the learned counsel for the appellant, the question before the Supreme Court in Madras Industrial Investment Corporation (supra) was as to whether the discount on debentures could be treated as an expenditure and the entire amount of discount was to be allowed in the year related to the year of issue itself. The Supreme Court held that although while issuing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a High Court in Commissioner of Income Tax vs. M/s Glen Appliances Pvt. Ltd., ITA No.858/2010 decided on 2nd May, 2011. The Bench also considered the judgment of the Supreme Court in Madras Industrial Investment Corporation (supra) and held in favour of the assessee as under:- "6. We are unable to accept the submission of the learned counsel. The Tribunal while accepting the plea of the assessee had held that the expenses incurred by the assessee on the aforesaid activities were revenue in nature and the entire amount was admissible in the year in which it was incurred. The finding recorded is as under:- "We have considered the facts of the case and rival submissions. The finding of the AO that even if the claim of the assessee that c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the order, we hold that the expenditure is revenue in nature and, therefore, it has to be allowed in full in this year." 8. Learned counsel for the revenue was unable to point out any irregularity or illegality in the aforesaid finding recorded by the Tribunal which may warrant interference by this Court. Accordingly, no substantial question of law arises in these appeals. The appeals being devoid of merit are dismissed." 11. In view of the foregoing reasons coupled with the fact that the learned counsel for the Revenue has failed to point out any illegality or perversity in the findings recorded by the learned Tribunal warranting any interference, the substantial question of law is answered in favour of the assessee and against the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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