TaxTMI 
TaxTMI 
2019 (9) TMI 1673
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....03/2014 was passed by the Assessing Officer ("AO", for short) U/s 153A read with Section 143(3) of Income Tax Act, 1961 ("I.T.", for short) wherein total income was assessed at Rs. 32,05,34,260/- (rounded off). In the aforesaid Assessment Order dated 28/03/2014 in additional amounting to Rs. 3,64,42,407/- was made U/s 69C of I.T. Act, (unexplained expenditure) by treating expenditure on advertisement amounting to aforesaid sum of Rs. 3,64,42,407/- has not genuine. The relevant portion of the Assessment Order dated 28/03/2014 is reproduced as under: "Unexplained advertisement expenses: 4. During the search it was observed that the group has booked substantial expenses under the head of advertisement expenses. Some of the expenses do not appear to be genuine/justified. In the proceeding of post search investigation, vide questionnaire dated 16.04.2012, the assessee was asked to provide the details of advertisement expenses. The assessee submitted the details of advertisement expenses of M/s Varun Beverages Ltd., vide its submission dated 20.06.2012. As per the details submitted, there are number of parties to whom advertisement expenses have been booked, bu....
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....er Section 133(6) of I.T. Act. Aggrieved, the Assessee filed appeal before learned Commissioner of Income Tax (Appeals). Vide impugned appellate order dated 14/11/2014, the Ld. CIT(A) deleted the aforesaid additions amounting to Rs. 3,64,42,407/-. Revenue has filed this present appeal in Income Tax Appellate Tribunal ("ITAT", for short) against the aforesaid impugned appellate order dated 14/11/2014 of the Ld. CIT(A). In the course of appellate proceedings in ITAT, the following particulars were filed from the assessee's side: * Content of the Paper Book 1. Assessment Order under Section 153A read with Section 143(3) of Income Tax Act, 1961 dated 28/03/2014 passed by the Assistant Commissioner of Income Tax, Central Circle-12, New Delhi. 2. Acknowledgement of Return of Income filed under section 139 and 153A of the Income Tax Act, 1961 of the assessee. 3. Questionnaire dated 23/10/2013 issued by the learned assessing officer during the course of assessment proceedings. 4. Reply submitted by the assessee in respect of advertisement expenses claimed in profit & loss account for the assessment year 2006-07 to 2012-13 5. Additional ....
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....Counsel for the Assessee contended that the issue in dispute in the present appeal is squarely covered in favour of the Assessee by the aforesaid orders dated 06/04/2018 and 23.04.2018 of Co-ordinate Benches of ITAT, Delhi. (D) On the other side, the learned Commissioner of Income Tax (Departmental Representative) ["Ld. CIT(DR)", for short] relied on the order of the Assessing Officer. However, he did not dispute the contention of the Ld. Counsel for assessee that the issue in dispute in the present appeal is covered in favour of the assessee by aforesaid orders dated 06/04/2018 and 23/04/2018. The Ld. CIT(DR) also did not bring out any facts and circumstances to our attention to distinguish the present appeal before us from the facts and circumstances of the aforesaid appeals in which similar addition on account of Advertisement Expenses were deleted by Co-ordinate Benches of ITAT, Delhi vide aforesaid orders dated 06/04/2018 and 23/04/2018 in similar facts and circumstances. (E) We have heard both sides. We have perused the materials available on record. We have considered the judicial precedents brought to our attention or referred to in the records. It is not in dis....
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....ty expenses and justification with documentary evidences for its allowability. The assessee submitted the party wise details of advertisement expenses claimed in the profit and loss account. However the ld Assessing Officer disallowed the expenditure of Rs. 19189959/- on the basis of non receipt of confirmation. According to assessee the conformation have been received only in respect of 2 parties amounting to Rs. 11,83,92,676/-. Further, according to the ld AO, the assessee did not file complete details in respect of those parties. Further in one of the cases the notice under section 133(6) was also not complied with. The assessee aggrieved with the order of the ld Assessing Officer preferred an appeal before the Ld. CIT (A). He deleted the disallowance relying on order for the Assessment Year 2010-11. He noted that the assessee submitted the complete details before the Ld. assessing officer however the Ld. AO allowed the expenditure which were confirmed by parties under section 133(6) of the Act and disallowed the balance sum where no confirmation was received. 24. The Ld. CIT DR vehemently supported the order of the Ld. assessing officer. She submitted that the assessee....
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....re in respect of 'Advertisement expenses' claimed to have been incurred in respect of two parties, namely, M/s Ramendra Enterprises and M/s Yum Restaurants Marketing Pvt. Ltd., to both of whom notices were issued u/s 133(6) but remained uncomplied with. Apart from issuing such notices, the Assessing Officer did not conduct any further inquiry. He simply proceeded to make the addition without ascertaining the genuineness or otherwise of these transactions. His inference of non-genuineness of the transactions was based simply on non-compliance by these two parties, whose complete particulars were with him. In case of non-compliance, the AO ought to have deputed Inspector or got the enquiry conducted by any other means before jumping to the conclusion of the non-genuineness of the transactions. It is further pertinent to note that additions were made in similar way in other years of the assessee company. Such an issue came up for consideration before the Tribunal in assessee's own case for the assessment years 2009- 10 and 2011-12. Vide order dated 06.04.2018, the Tribunal, in ITA No.860 and 862/Del/2015 and C.O. Nos.293 and 294/Del/2015, has upheld the deletion of similar ad....