TaxTMI 
TaxTMI 
2019 (6) TMI 288
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....erative expenses made by the Assessing Officer. Ground No. 2 relates to the deletion of addition of Rs. 66,39,950/- treated by the Assessing Officer as expenditure on advertisement, the assessee is building a brand image of the parent company and hence capital in nature. 3. Briefly stated, the facts of the case are that the assessee is engaged in trading of high-end kitchen appliances, cooling and coffee machines and laundry and floor care appliances. The return for the year under consideration was E-filed on 27.09.2010 declaring loss of Rs. 7.83 crores. The return was selected for scrutiny assessment and, accordingly, statutory notices were issued and served upon the assessee. 4. During the course of scrutiny assessment proceedings, ....
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....er concluded by holding that the expenditure is for future and of enduring nature. Accordingly, he disallowed the expenditure amounting to Rs. 66,39,950/-. 8. The assessee strongly agitated the matter before the ld. CIT(A). 9. After considering the facts and submissions, the ld. CIT(A) called for remand report from the Assessing Officer. The Assessing Officer, in his remand report, conceded that the company has commenced its business operations during F.Y. 2009-10 and the first two purchase orders from Ms Navin Electrotech Pvt Ltd and M/s Dhawal International Electronic Pvt Ltd have been received during the previous year 2008-09. Considering the facts of the case in the light of the remand report, the ld. CIT(A) deleted the addition o....
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....this expenditure. We may also add here that in the Income- tax laws, there is no concept of deferred revenue expenditure. Once the assessee claims the deduction for whole amount of such expenditure, even in the year in which it is incurred, and the expenditure fulfils the test laid down under section 37 of the Act, it has to be allowed. Only in exceptional cases, the nature mentioned in Madras Industrial Corporation (supra), the expenditure can be allowed to be spread over that too when the assessee chooses to do so. (The decision has been subsequently affirmed by Supreme court.) Considering the facts & circumstances of the case & various judicial pronouncements in the matter, the addition made by the Assessing Officer is deleted."....
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....of customer orders received from Dawar International Electronics Pvt. Ltd. 2-1-2009 and 22-1-2009 Date of various purchase orders raised on Miele and Cie KG 18-3-2009 18-5-2009 and 14-7-2009 Date of agreement with R and P Management Communications Pvt. Ltd. 1-8-2009 Date of invoice raised by Miele and Cie KG pursuant to purchase order dated 18 March, 2009 5-8-2009 Date of import of products for demonstration purposes from Miele and Cie KG 19-8-2009 Date of receipt of consignment from Miele and Cie KG against invoice dated 5 August, 2009 22-9-2009 Distribution of product catalogues/informa....