TaxTMI 
TaxTMI 
TaxTMI 
2019 (6) TMI 471
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.... as against returned income of Rs. 190.29 Lacs e-filed by the assessee on 28/11/2011. 3. The Ld. Authorised Representative for the assessee [AR], Shri M.P.Lohia, at the outset, submitted that all the issues under appeal are covered by the earlier orders of the Tribunal in assessee's own case which is evident from the fact that early hearing was granted to the assessee vide order sheet entry dated 27/07/2018. The said facts were confronted to Ld. CIT-DR who could not rebut the same. The details for Tribunal's order, for ease of reference, could be tabulated in the following manner: - No. ITA No. Order Dated AYs 1. ITA Nos.6005,6006,5807/Del/2013 31/03/2017 2007-08 & 2008-09 2. ITA Nos. 1855, 979/Del/2014 16/06/2017 2009-10 3. ITA Nos. 1784,1857/Del/2016 13/04/2018 2011-12 In the above background, our ground wise adjudication is as follows. 4.1 Ground No.1 is general in nature. Ground No.1.1 and 1.2 read as under: - Part I-Corporate Tax Adjustments On the facts and in the circumstances of the case and in law the learned AO on fact and in law has: Disallowance of amortised expense of loaner set amounting to Rs. 8,15,92,059/- 1.1. erred in disallo....
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....he same in terms of our above directions. The grounds of appeal stand allowed. 5.1 The next Ground reads as under: - "Disallowance of 50% of advertisement and sales promotion expenses amounting to Rs. 9,08,930/- 1.3 erred in disallowing 1/2 of the advertisement and sales promotion expenses incurred for the purpose of business amounting to Rs. 9,08,930/- by holding that such expense are enduring in nature and in nature of deferred revenue expenditure; and 1.4 Without prejudice to the above, erred in not allowing amount disallowed in the earlier year." On perusal of Profit & Loss Account, it transpired that assessee debited advertisement and sales promotion expenditure for Rs. 18.17 Lacs. The Ld. opined that the same were incurred to enhance the profitability. Therefore, 50% of this expenditure i.e. Rs. 9.08 Lacs was deferred to subsequent year. The Ld. DRP, following directions in AYs 2008-09 to 2011-12, upheld the same. 5.2 We find that this issue is covered by the cited order of Tribunal for AYs 2007-08 & 2008-09, wherein the matter has been concluded in the following manner: - 5.3 Having considered the rival submissions and perused the relevant material on record, we ....
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....ssue that fall for our consideration is as under: - Disallowance of 4/5th of the recruitment and training expenses amounting to Rs. 44,76,295 "1.5 erred in disallowing 4/5lh of the recruitment and training expenditure amounting to Rs. 44,76,295 by holding that such expenditure are enduring in nature and in the nature of deferred revenue expenditure to be amortized over a period of 5 years." The assessee incurred an expenditure of Rs. 55.95 Lacs towards staff recruitment and training. The Ld. AO treating the same as enduring benefit, allowed only 1/5th of the same and disallowed the balance expenditure to be appropriated in the next 4 years. The Ld. DRP, following directions in AYs 2008-09 to 2011-12, upheld the same. 6.2 We find that this issue is covered by the order of Tribunal for AY 2008- 09, wherein the matter has been concluded in the following manner: - 16.2 The Ld. CIT-A has clearly held that no asset was created by incurring expenditure on recruitment and training and, therefore, there was no reason for treating this expenditure as capital expenditure. The finding of the Assessing Officer has not been found by the Ld. CIT-A in accordance with accounting principles.....
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....)(ia). The Ld. DRP, following directions in AYs 2008-09 to 2011-12, upheld the same. 7.2 The perusal of details of these expenditures, as tabulated on page no. 107 of the paper-book, would reveal that these expenditures have been incurred towards convention expenses, education support expenses, seminar sponsorship fees, symposium/ workshop expenses. We find that this issue, on similar factual matrix is covered by the order of the Tribunal for AY 2011-12. The Tribunal has concluded the matter in assessee's favor by following the judgment of this Tribunal rendered in India Medtronics Pvt. Ltd. [ITA 1600/Mum/2015 dated 17/10/2018]. The Ld. AR has further drawn our attention to the fact that similar factual matrix is also covered by the subsequent decision of Hon'ble Rajasthan High Court rendered in Dr. Anil Gupta [ITA No.286 of 2018], Mumbai Tribunal in Aristo Pharmaceuticals Pvt. Ltd. [ITA No. 5553 &6129 of 2014 26/07/2018] & Pune Tribunal in Emcure Pharmaceuticals Ltd. [ITA No. 1532 of 2015 29/01/2018]. Since nothing on record suggest any change in nature of expenditure, respectfully following the binding judicial pronouncements, we delete the impugned additions. This ground stand....
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...., in the opinion of Ld. TPO, has developed marketing intangibles in the form of distribution and dealer network, network with hospitals, customer bases etc. Therefore, the assessee was required to be compensated suitably for the same. The expenses incurred by the assessee under this head amounted to Rs. 14.86 Crores which worked out to be 10.62 % of gross sales. In the above background, Ld. TPO proceeded to determine the ALP of the same. 9.3 The assessee agitated the same by submitting that the AMP expenses were paid to third parties in India and there was no arrangement / agreement, whatsoever, between the assessee and its AE for undertaking any brand building activity and therefore, mere incurring of aforesaid expenditures would not constitute international transaction. These expenses were stated to have been incurred by the assessee for its own benefit and it was submitted that no services have been rendered to its AE. However, disregarding the same, Ld. TPO proceeded to compute the Arm's Length Price of the same by adopting Bright Line Test. The mean average of 3 comparable selected by Ld. TPO worked out to 5.94% and applying the same to gross sales, excess expenditure incurr....