2011 (4) TMI 17

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..... hus, merely because the Commissioner has mainly been influenced that by the fact that there may be other view possible, the Commissioner could not have exercised his power under Section 263 of the Act on that basis alone If the Assessing Officer has adopted one of the views then as held by the Apex Court decision in the case of Mallabar industrial Co. Ltd. (2000 -TMI - 5786 - SUPREME Court), provisions of Section 263 are not attracted.
MR. JUSTICE A.K. SIKRI, MR. JUSTICE M.L. MEHTA, JJ. Mr.Kamal Sawhney, Sr. Standing Counsel. For Applicant A.K. SIKRI, J. (ORAL) * 1. The issue involved in both the appeals is common, which pertains to two assessment years. The Assessing Officer had passed assessment orders, which inter alia allowed de .....

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..... 3.1 The issue regarding the nature and purpose of service charges and its allowability as revenue expenditure has not been examined properly by the Assessing Officer. The assessee's reply shows that service charges are paid for advisory and support services which appear to give an enduring benefit to the assessee. The Assessing Officer is directed to re-examine the details of the service charges and decide the issue in accordance with law specifically determining whether advantage of enduring nature brining longterm benefits to the assessee is created by incurring the expenditure." 3.2 Regarding advertisement, publicity and sales promotion expenses also, it is found that although details were submitted before the Assessing Officer which has .....

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..... t basis alone. In these circumstances, the Income Tax Appellate Tribunal rightly set aside the orders of the CIT(A) in the following manner: "We have carefully considered the submissions. We find that as rightly pointed out by the ld. Counsel of the assessee, information on all the issues and the details were submitted before the Assessing Officer by way of submissions by the assessee, pursuant to the notice under Section 143(2) of the Act. Admittedly, after perusal of these details, the Assessing Officer did not find that the expenditure were capital in nature. Hence he did not make any disallowance in the assessment order on account of capital expenditure in this regard. Now the ld. CIT's conclusion is that these expenditures might have .....

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