2012 (7) TMI 541
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.... crores. The return of income was filed declaring original income at Rs.49,08,100/- on 02.12.2003. The assessment was completed u/s 143(3) on 22.03.2005 at an income of Rs.52,44,787/-. A notice u/s 148 was issued on 29.03.2010 and the reassessment u/s 143(3)/147 was completed on 30.08.2010. In this assessment, an addition of Rs.35,45,581/- was made on account of not allowing as revenue expenditure of the purchase of tin plates for advertisement and publicity debited in the profit and loss account. The assessee filed appeal against this addition and also challenged the reopening proceedings before the CIT (A). The CIT (A) uphold the reassessment but granted relief to the assessee on merits of addition by holding as under :- "5.1 I have car....
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....l material printed on it. It is argued that considering the sales all over India, the tin plates are printed in different languages and given to dealers of concerned states for pasting on the rickshaws. It is argued that the life span of a tin plates is less than one year and that is why it is given to the dealers every year. It is argued that since the tin plates are already given to the dealers for advertisements, the same are no longer the property of the company and hence cannot be treated as capital asset. The Id. AR has relied upon the decision in the case of CIT v. Liberty Group Marketing Division 315 ITR 125 (P & H) where in the context of neon sign and glow sign boards under similar facts it was held by the Hon'ble High Court that ....
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....rough its dealers all over India. The perusal of the paper book available on record shows that individual cost of each plate comes around Rs.17.05. This fact is evident from the copy of the bills available on record. These tin plates are printed in various languages at various places and the same were for advertisement and these plates were fixed on the rickshaws at various places. These plates were for advertisement and publicity of the product manufactured by assessee and sold through the network of dealers all over India. The turnover of the company during the relevant period was around Rs.200 crores. The authorized dealers were located in various parts of India. These tin plates were distributed to various dealers. They have placed them....