TaxTMI 
TaxTMI 
2018 (12) TMI 755
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....tion. The A.O. in the assessment order noted that from the details furnished by the assessee, it has been found that the assessee has claimed selling and distribution expenses of Rs. 28,35,880/-. The month wise details of these expenses were called for and from the same it was found that the assessee has claimed Rs. 14,62,540/-, in the month of March. However, in other months the 'selling and distribution' expense was very less. The details are noted in the impugned order. It was, therefore, noted that assessee has claimed huge expense in the Month of March, 2007. The explanation of assessee was called for in which the assessee explained that the selling and distribution expenses were incurred during the period January 2007 to March 20....
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....essee has incurred huge expenditure of the publicity of Times of India Kannad Edition and hence, it is clear that the expenses was incurred to establish and launch a New Edition of the News Paper. It was, therefore, held to be capital in nature. The A.O. accordingly, disallowed an amount of Rs. 13,37,691/- after excluding the average of selling and distribution expenses. 3. The assessee submitted before Ld. CIT(A) that promotion of Bennett Coalman & Co. Ltd. (BCCL)'s publications is an inherent part of the assessee's business. It was also contended that the expenditure does not constitute capital expenditure. In the course of appeal, the assessee filed an application for admission of additional evidence consisting of letter of the Company ....
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....al.) in which the question of law answered by the Hon'ble Calcutta High Court was (i) "Whether, in the facts and circumstances of the case, the Tribunal was justified in law in allowing a sum of Rs. 8,29,723/- as revenue expenditure." The Learned Counsel for the Assessee submitted that the Hon'ble Calcutta High Court "answered the question in favour of the assessee". The relevant findings of the Hon'ble Calcutta High Court are as under : "It is also the settled law that an advertisement expense of the nature in question here cannot compulsorily be made to be treated by the assessee as a long-term capital expenditure. On the other hand, advertisement expenses are normally to be treated as revenue expenditure since the memory of the purcha....