TaxTMI 
TaxTMI 
2011 (4) TMI 786
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....on of Rs.1,03,78,657/- made by the AO on account of recruitment and training expenses; 2. Ld. Commissioner of Income-tax (Appeals) erred, in law and on the facts and circumstances of the case, in deleting the addition of Rs.60,06,344/- made by the AO on account of sales promotion expenses; 3. Ld. Commissioner of Income-tax (Appeals) erred, in law and on the facts and circumstances of the case, in deleting the addition of Rs.1,12,61,787/- made by the AO on account of depreciation on computers." 3. The first issue for consideration relates to deleting the addition of Rs.1,03,78,657/- made by the assessing officer on account of recruitment and training expenses. The assessing officer while completing the assessmen....
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....mitted that training and recruitment expenses are revenue in nature. On the other hand, the ld. CIT - DR supported the order of the assessing officer. 6. We have heard both the parties and perused the material available on record. In assessment year 2004-05 the ld. CIT (A) has deleted the addition by holding that the expenditure incurred on recruitment and training was revenue in nature. The Department has not filed any appeal before the ITAT challenging the deletion of the addition on recruitment and training. Further, the assessing officer had not doubted the genuineness of the expenses incurred on recruitment and training of of employees. Such expenditure was incurred in the ordinary course of business and no capital asset has ....
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.... books of account over a period of five years, it must be allowed in its entirety in the year in which it was incurred if it was the revenue expenditure and if it was wholly and exclusively incurred for the purposes of its business. In the present case, there is no dispute that the expenditure in question incurred by the taxpayer company on training of its employees was wholly and exclusively incurred for the purpose of its business. As regards the nature of the said expenditure, the submission of the taxpayer company before the authorities below as well as before us has been that the said expenditure was incurred for the purpose of imparting training to its employees in order to increase their efficiency in day-to-day working and there is ....
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....t on this issue is, therefore, reversed and the Assessing Officer is directed to allow the said expenditure in full." 7. Since the issue is squarely covered by the decision of the ITAT in the case of Sony India (P.) Ltd. vs. DCIT (supra), we do not find any infirmity in the order passed by the ld. CIT (Appeals) deleting the addition. 8. The next issue for consideration relates to deleting the addition of Rs.60,06,344/- made by the Assessing Officer on account of sales promotion expenses. The assessee in the return of income claimed expenditure of Rs.90,09,516/- on account of advertisement and sales promotion. The AO disallowed 2/3rd of the expenses on the ground that advertisement and sales promotion expenses have result....
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....0 per cent. 12. Before us the ld. AR of the assessee submitted that the ITAT, Delhi Bench G, New Delhi, in assessee's own case for AY 2004-05 in ITA. No. 427 (Del) of 2008 dated 08th October, 2010 has confirmed the order of the ld. CIT (A) allowing 60% of depreciation on computers. On the other hand, the ld. CIT - DR supported the order of the AO. 13.1 We have heard both the parties. ITAT, Delhi Bench - G, New Delhi, in assessee's own case for AY 2004-05 has confirmed the order of the ld. CIT (A) by observing as under:- "22. We have heard the rival submissions and have gone through the material available on record. We find that the dispute is regarding rate of depreciation to be allowed on computers. The AO has....