TaxTMI 
TaxTMI 
2015 (6) TMI 840
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....and publicity. 2. Ld. Commissioner of Income Tax (Appeals) erred, in law and on facts and circumstances of the case, in deleting the addition of Rs. 1,45,980/- made by the AO on account of depreciation on computer peripherals and accessories. 3. The appellant craves to amend modify, alter, add or forego any ground of appeal at any time before or during the hearing of this appeal". ITA No. 4903/Mum/2010 : 1. "On the facts and in the circumstances of the case the Ld. CIT (A) erred in law as well as on merits in deleting the addition of Rs. 1,45,40,201/- made by AO on account of Advertisement and business promotion expenses being capital in nature. 2. The appellant craves to amend, modify, alter, add or forego any ground of appeal ....
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.... course of business of the Appellant Company. The fact that such expenditure is revenue in nature is supported by numerous judgments as relied upon by the Appellant Company. 2.6 The cases referred by the Ld. AC are in reference to the treatment of an expenditure which provides enduring benefit to assessee. The appellant has pointed out that it has been time and again held by various Hon'ble Tribunals including the jurisdictional Hon'ble Delhi Tribunal that expenditure incurred on advertisement and sales promotion does not ensure any enduring benefit to a company. 2.7 The appellant has relied on the observations of the Hon'ble Supreme Court in the cases of Empire Jute Company Ltd (Supra) and Alembic Chemical Works Company L....
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....f the expenditure incurred on advertisement made by the Ld. AO is deleted". 10. The CIT(A) reversed the order of the AO and accordingly gave relief to the assessee by deleting the disallowance of Rs. 7,96,873/-. 11. Against this order of the CIT(A), the department is in appeal before the ITAT. 12. Before us, the DR relied on the order of the AO, whereas, the AR relied on the order of the CIT(A). 13. After hearing both the parties and on going through the details and various case laws referred before us in the APB, we are of the opinion that there was no infirmity in the order of the CIT(A), who relied on the ratios laid down by the Hon'ble Supreme Court in the cases of Empire Jute Co. Ltd. vs CIT reported in 124 ITR 01 and Alembic ....
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....he Act defines computer system which reads as under: "computer system' means a device or collection of devices including input and output support devices and excluding calculators which are not programmable and capable of being used in conjunction with external files, or more of which contain computer programmes, electronic instructions, input data and output data, that performs functions including, but not limited to, logic, arithmetic, data storage and retrieval, communication and control" 4.6 It is clear from the above definition that a computer system includes its input and output devices. Moreover, the legislature could not have intended to provide a higher rate of depreciation only for a monitor and a central processing unit....
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....20. The CIT(A), then deleted the addition as made by the AO. 21. Against this order of the CIT(A) on the issue, the department is in appeal before the ITAT. 22. Before us the DR relied on the order of the AO, whereas the AR relied on the order of the CIT(A). 23. We have heard the arguments and have gone through the order of the revenue authorities and we find that the order of the CIT(A) is reasonable and as per the inference drawn from the provision of the Act and decided case laws. 24. We, therefore do not find and any reason to deviate from the well reasoned order of the CIT(A), which we sustain. As a result, the ground of appeal, as filed by the department is rejected. 25. Ground no. 3 is general in nature. 26. As a re....