2013 (7) TMI 1088

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....1. On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in restricting the disallowance u/s 14A at ` 5 lakhs without giving any basis. 2. On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in deleting the disallowance of ` 44,78,696 out of the total expenses of ` 55,98,370 on television commercials without appreciating the facts that the said expenditure has enduring benefits to the assessee." 2. The Assessing Officer has applied Rule 8D for making disallowance under section 14A, as per the working given at Page-2 of the assessment order. The learned Commissioner (Appeals) held that in view of the judgment of Hon'ble Jurisdictional High Court in Godrej & Boyce Mfg.....

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.... Assessing Officer. Consequently, following the same, we restore the issue to the file of the Assessing Officer, who shall, on some reasonable basis, work out the disallowance, if any, after calling for the records from the assessee. The ground no.1 is, thus, treated as allowed for statistical purposes. 6. In ground no.2, the Revenue has challenged the deletion of disallowance of ` 44,78,696, out of the total expenditure of ` 55,98,370, on television commercial. 7. The Assessing Officer noted that the assessee has incurred advertisement expenses of ` 55,98,370, on production of TV commercial. He held that such commercials have enduring benefit and, hence, is a capital expenditure. Accordingly, 20% of such expenditure was allowed in this y....