2009 (2) TMI 13

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....ai and Mr. Ravi Ratesar i/b. D.M. Harish & Co., for the Respondent. JUDGMENT The judgment of the court was delivered by F.I. REBELLO, J. - These Appeals are in respect of assessment years 2001-2002 and 1996-97. The common question of law which would arise in both these Appeals reads as under:- "Whether on the facts and circumstances of the case and in law the Hon'ble Tribunal was right....

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....existence of its products, including improvement, if any, in the market which may or may not result in sales. The Assessment Officer disallowed the expenditure by holding that it is capital in nature. In Appeal preferred by the Assessee before the C.I.T. (A), the C.I.T. (A) was pleased to hold that considering that these are films in the form of advertisement whose life term cannot be ascertained ....

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....tisement film was in the nature of revenue expenditure. 3. The only ground based on which the Revenue has approached this Court is as pointed out earlier that the Tribunal ignored the ratio of the judgment in Patel International Films Ltd. We may point out, that on facts there the assessee company was in the business of processing and printing movie films in a processing and printing laboratory....

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....s going to be carried out in the future. In the instant case as the facts bear out, the advertisement was in respect of an ongoing business of the assessee herein. 4. A similar issue had come up for consideration before the Division Bench of the High Court of Punjab & Haryana in Commissioner of Income Tax vs. Liberty Group Marketing Division, 2008 (8) DTR Judgments, 28. In that case the assesse....