2012 (9) TMI 942

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ue in both the appeals reads as under:- "The ld. CIT(A) has erred in law in deleting the addition made by the Assessing Officer on account of Advertisement Expenses as the assessee has claimed advertisement of "Rasna" products and the same brand is being used by other concerns of the assessee group. Hence the assessing officer has rightly disallowed advertisement expenses. The action of A.O. should have been upheld." 3. We are deciding this issue by taking the facts of ITA No.1706/Ahd/2010, A.Y. 2007-08. The A.O. has dealt the issue as under:- "During the course of assessment proceedings, it was noticed that the assessee has claimed the advertisement expenses of Rs. 1,18,80,923/-. On perusal of the earlier assessment year's order, ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ng to Rs. 36364340/-, and for F.Y. 05-06 relevant to A.Y. 06-07 under consideration it has incurred advertisement and sales promotion expenses amounting to Rs. 30077136/-, for F.YM. 2006-07 relevant to A.Y. 2007-08 it has incurred advertisement of Rs. 8334373/- therefore, the erroneous and socalled basis of disallowance by the Dept. disappears and by the reasoning of the Dept. itself the advertisement expenditure for the year becomes fully allowable. During the assessment year 2006-07 year Rasna Pvt. Ltd. has incurred advertisement and sales promotion expenditure of Rs. 12.49 crores which was Rs. 19.17 crores in A.Y. 05-06, for A.Y.2007-08 the Rasna Pvt. Ltd., incurred advertisement expenses of Rs. 671.43 lakhs this will show that the as....