TaxTMI 
TaxTMI 
2023 (4) TMI 740
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.... New Delhi (hereinafter referred as the Ld. AO). The Revenue is in appeal against order dated 27/03/2015 & 26/03/2015 for A.Y. 2006-07 to 2007-08 of Ld. CIT(A)-4, New Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. 'FAA') arising out of an appeal before it against the order dated 24.11.2009 & 27.12.2010 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as 'the Act') by the DCIT, Circle-12(1), New Delhi (hereinafter referred as the Ld. AO). 2. The facts in brief are that the assessee company is a manufacturer and trader of non alcoholic beverages and filed returns for respective years, which were processed u/s 143(2) of the Act. Additions were made and based on the grounds of appeal, it can be observed that primarily six issues are raised by assessee, which are common in following appeals, so, for convenience same are adjudicated by this common order. First issue is disallowance of non compete fee which is common for A.Y 2004- 05, 2005-06, 2006-07 and 2007-08. Second issue, is the disallowance of depreciation claimed on acquisition of distributors list which is common in AY 2004-05, 2005-06, 2006-07 and 2007-08. ....
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....le Delhi High Court. Subsequently, the appeals for 2001- 02 and 2003-04 have been admitted on the same substantial question of law by Hon'ble Delhi High Court. 5.1.2 That being the states of facts of the legacy issue, the propriety requires to follow the rules of consistency as there is nothing to differ. Thus, the issue is decided against the assessee. Consequently, the grounds in that regard raised in the respective A.Y. stand dismissed. 6. Issue no. 2; In regard to disallowance of depreciation claimed on acquisition of distributors list it comes up that assessee had appointed M/s. S.R.Mineral Water Pvt. Ltd. as its distributor in Chennai which was earlier distributor of competing product from which it had built a large customer base in Chennai. Assessee had forgone a substantial amount due from S. R Mineral, which was by way of deposits collected on behalf of assessee. This amount as forgone by the assessee was considered as consideration for acquisition of rights to access to the customer data base available with the said distributor. Assessee considered it as a capital expenditure towards acquisition of intangible asset being customer data bank and claimed depreciation. ....
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...., the processing charges were claimed during the relevant previous years and the same have been disallowed on adhoc basis on the basis of non-sustenance of same on the basis of notices issued to the concerned parties. The claim of the assessee is that there is novariations in the details of processing charges furnished during the course of assessment proceedings with the amount debited in the books of accounts. The amounts were made through banking channels. It also comes up that in assessment years 2006-07 to 2009-10 the Ld. CIT(A) has deleted the adhoc disallowance not being supported by any adverse evidence. However, in assessee's own case for assessment year 2003-04, the Tribunal has restored the issue to the files of ld. AO with the direction to the assessee to file the requisite details and reconcile the differences between the amounts appearing in the books of accounts and the balance appearing in the accounts of third parties and thereafter it is for the Assessing Officer to decide the issue as per facts and law. 7.1 On behalf of the assessee, however, it is submitted that the assessee cannot be prejudiced for non-appearance of the parties providing processing services a....
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.... 'Marketing Expenses'. Ld. CIT(A) has allowed the claim of Sign board as revenue expenditure, however, treated the Ice-Boxes as part of plant and machinery and allowed depreciation in assessee's own case for A.Y. 2002-03. The Tribunal has disallowed expenses hold the same to be capital in nature. 9.1 On behalf of the assessee it is submitted that there is no enduring benefit to the assessee and the purpose of expenditure is to increase the sales at the outlets / vendors therefore, the expenditures were incurred for the purpose of business promotion and advertisement. It is submitted the Ice-boxes do not have as life and scrapped soon. 9.2 The issue is dealt by Co-ordinate Bench, in the case of assessee for A.Y. 2002-03 by co-ordinate Bench with following relevant findings :- "21. We are of the considered opinion that the touchstone applied by Hon'ble Delhi High Court in the case of M/s. Pepsico India Holdings (P) Ltd. (supra) referring the decision of Hon'ble Apex Court in the case of Assam Bengal Cement (Supra) it was held that if the expenditure is made for acquiring or bringing into existence an asset or advertisement for the enduring benefit of the business. It i....