2014 (9) TMI 732

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....available on record. On a careful consideration of the peculiar facts and circumstances of the case and legal decision on the issue involved, we are of the view that there is no infirmity in the order of the CIT(A). A perusal of the assessment order shows that no basis for concluding that 25% of the expenditure on account of advertisement and marketing expenses should be disallowed has been set out which is a fact which prevailed with the CIT(A) to upset the finding in the assessment order as having based on no facts the admitted position is that this was the first year of operation of the assessee wherein w.e.f 9.4.2009 the assessee substituted the word 'hot spot' for the word 'spice'. As such the assessee undertook schemes....

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....asset. We find support from the judgement of the Jurisdictional High Court in the case of CIT vs. Salora International Ltd. 308 ITR 199 Delhi wherein considering the advertising expenditure of approximately Rs. 3.08 crores the conclusion of the Tribunal namely that there was direct nexus between advertisement expenditure and the business of the assessee and that the assessee had to incur such expenditure to meet the competition in the Indian market for selling its products in India was upheld. In the facts of the present case also it is imperative that unless the assessee made its products known to the market its business would suffer. The judgement of Apex Court in Empire Jute Mills 124 ITR 1 (8. C.) which has considered that there could b....

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....e finding in the impugned order is confirmed the C.O. filed by the assessee is infructuous and is dismissed as such. " 2. The learned senior standing counsel states that she does not have any instructions and cannot state whether the revenue has preferred an appeal against the findings recorded by the Tribunal in the respondent- assessee's own case for the Assessment Year 2008-09. 3. We have examined the aforesaid reasoning given by the Tribunal and find the same to be meritorious and deserves affirmation. The respondent-assessee was engaged in the service of trading of mobile handsets, its accessories and mobile repairing. For the purpose of business, it had incurred expenditure of Rs. 11,51,40,004/ on advertisement. The Assessing Office....