2012 (9) TMI 942 - AT - Income Tax

Summary

Issues involved: Revenue's appeal against the orders of ld. CIT(A)-XV I, Ahmedabad dated 25.03.2010 and 28.04.2011 regarding deletion of addition made on account of Advertisement Expenses.

Issue 1 - Advertisement Expenses Disallowance:
The Assessing Officer (A.O.) disallowed 30% of the advertisement expenses claimed by the assessee, totaling to Rs. 35,64,277, based on earlier assessment orders. The assessee argued that the expenses were fully allowable as they were for the business needs and interest over the brand. The A.O. initiated penalty proceedings u/s 271(1)(c) for furnishing inaccurate particulars of income. However, the ld. CIT(A) deleted the addition citing previous appellate orders in favor of the appellant for similar issues in earlier assessment years.

Issue 2 - Judicial Precedent and Decision:
The ld. CIT(A) and the parties agreed that the issue was already decided in favor of the assessee by the Hon'ble ITAT, Ahmedabad Bench in the appellant's own case for the Asst. Years 2004-05, 2005-06, and 2006-07. Consequently, the Revenue's appeals for both years were dismissed, upholding the decision in favor of the assessee.

In conclusion, the appeals by Revenue were dismissed based on the precedent set by earlier appellate orders and the decision of the Hon'ble ITAT, Ahmedabad Bench.