Tax Tribunal: Revenue appeal dismissed for A.Y. 2013-14, CO dismissed, assessee appeal allowed for A.Y. 2014-15

The Tribunal dismissed the revenue's appeal for A.Y. 2013-14, dismissed the CO of the assessee for the same year, and allowed the assessee's appeal for A.Y. 2014-15. The orders were pronounced on 30/07/2021.

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Issues involved:
1. Disallowance of Brand Image expenses
2. Disallowance under section 14A of the Income Tax Act, 1961
3. Provision towards commission disallowance
4. Additional depreciation claim under Plant and Machinery
5. Deduction claims under sections 35AC and 80G

Issue 1: Disallowance of Brand Image expenses:
In ITA No. 4553/Del/2017 for A.Y. 2013-14, the revenue raised grounds against the CIT(A)'s decision to restrict the addition of Brand Image expenses. The revenue contested the reduction of the addition made by the AO, disallowing expenses under various heads. The CIT(A) examined the bills and disallowed expenses pertaining to the assessment year 2012-13. The Tribunal found no rebuttal by the revenue and declined to interfere with the CIT(A)'s order.

Issue 2: Disallowance under section 14A of the Income Tax Act, 1961:
In ITA No. 4553/Del/2017, the AO disallowed an amount under section 14A based on the investment shown in the balance sheet, despite no exempt income earned by the assessee. The CIT(A) upheld the assessee's claim, and the Tribunal declined to interfere with the order, as no exempt income was earned and claimed by the assessee.

Issue 3: Provision towards commission disallowance:
The AO disallowed a commission payment holding it was a provision, but the CIT(A) found it was a payment for services rendered. The Tribunal upheld the CIT(A)'s decision, noting the payment was an ascertained liability for services rendered, and TDS was deducted. No contrary material was presented, leading to the Tribunal declining to interfere with the order.

Issue 4: Additional depreciation claim under Plant and Machinery:
The matter was referred back to the AO for re-computation, considering the judgment of the Supreme Court and amended provisions. Both parties agreed to refer the issue to the AO for examination on factual and legal aspects.

Issue 5: Deduction claims under sections 35AC and 80G:
Both parties agreed to refer the matter to the AO for examination, and the AO was directed to take a decision in accordance with the provisions of the Act.

In conclusion, the Tribunal dismissed the revenue's appeal for A.Y. 2013-14, dismissed the CO of the assessee for the same year, and allowed the assessee's appeal for A.Y. 2014-15. The orders were pronounced in the open court on 30/07/2021.

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