2015 (2) TMI 732

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.... "(1) Whether, on the facts and in the circumstances of the case and in law, the Tribunal is justified in quashing the order under Section 263 of the Income Tax Act,1961 as undoubtedly, the expenditure of Rs. 2.94 crores was incurred to create the brand "Nirvana" - an intangible asset ? (2) Whether on the facts and in the circumstances of the case and in law, the Tribunal erred in taking the view that the expenditure incurred by the assessee did not result in any kind of addition or augmentation of any profit making asset, when the assessee company itself has admitted that the expenditure was incurred for the creation of a brand 'Nirvana' that is an intangible asset ? (3) Whether on the facts and in the circu....

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....l nature and disallowed the same by an order passed under Section 143(3) of the Act. 5. The Commissioner of Income Tax issued a show cause notice under Section 263 of the Act to the respondent seeking to revise the assessment order dated 24.12.2008. This is on the ground that the entire miscellaneous expenditure of Rs. 2.94 crores for creation of brand "Nirvana" was a capital expenditure. The respondentassessee pointed out to above facts as transpired before the Assessing Officer. However, the Commissioner of Income Tax rejected the petitioner's submissions and held that the Assessing Officer had erred in allowing the expenditure incurred as miscellaneous expenses for creation of brand "Nirvana" as revenue expenditure. 6. In the a....

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....s not to be treated as capital in nature. In view of the above it is submitted that the impugned order is unsustainable. 8. We find that the impugned order of the Tribunal does record the fact that specific queries were made during the Assessment proceedings with regard to details of expenditure claimed under the head "miscellaneous expenses" aggregating to Rs. 2.94 crores. The respondent-assessee had responded to the same and on consideration of response of the respondent-assessee, the Assessing Officer held that of an amount of Rs. 17.98 lakhs incurred on account of repairs and maintenance out of Rs. 2.94 cores is capital expenditure. This itself would be indication of application of mind by the Assessing Officer while passing the impu....