2010 (11) TMI 674

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.... filed by the Revenue is directed against the order of the Commissioner of Income-tax(Appeals)-II Hyderabad dated 13.1.2010 for the assessment year 2006-07.   2. Effective grounds of the Revenue in this appeal read as follows-   "1.....   2. The CIT(A) erred in holding that the assessee is not liable to deduct tax on the advertisement expenditure of Rs.2,91,20,349/-.  ....

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....prises Limited for the marketing of its products. As per clause 12 of the said agreement, M/s. Prayag Enterprises shall distribute all compliments, gift articles, cash incentives on behalf of the assessee to its retailers. M/s. Prayag Enterprises Limited purchased pre-printed T-shirts from M/s. Seshachalam Textiles Ltd. and supplied the same to the assessee by raising debit notes on various occasi....

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....the issue involved in this appeal is covered in favour of the assessee by the decision of the Delhi High Court in the case of CIT V/s. Dabur India Ltd. (283 ITR 197)(Del). 5. We have heard both sides and perused the orders of the lower authorities and other material available on record. It is evident from the impugned orders of the lower authorities that the expenditure of Rs.2,91,20,349 disall....

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....no material on record to show assessee has provided for any specifications with regard to the T-shirts to M/s. Seshachalam Textiles Ltd. or M/s. Prayag Enterprises Ltd. for supplying specified T-shirts. The assessee admittedly has not supplied any raw material like, yarn, thread or ink for making the T-shirts. In these circumstances, we agree with the CIT(A) that the predominant object underlying ....