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TMI Blog2012 (7) TMI 541X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee to the query is also silent on the issue, thus it is clear from the records that the assessment order was passed without any application of mind and such non-application of mind is clear from the order of the assessment itself - no fault in the order of CIT (A) in upholding the reopening of the assessment proceedings - ITA No.2845/Del./2011 - - - Dated:- 22-6-2011 - SHRI RAJPAL YADAV, AND SHRI B.C. MEENA, JJ. REVENUE BY : Shri Sanjay Pandey, CIT DR ORDER PER B.C. MEENA, ACCOUNTANT MEMBER : This appeal filed by the revenue emanates from the order of the CIT (Appeals)-XVIII, New Delhi dated 18.02.2011 for the Assessment Year 2003-04. The assessee has also filed the cross objection. 2. The assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and tubes are sold all over India and the turnover of the company for the year under consideration was Rs.220 crores. It is argued that the expenditure on purchase of tin plates at Rs.35,45,581/- is a part of the total expenditure of Rs.2,39,84,109/- under the head advertisement and publicity against the above total turnover of Rs.220 crores on sales all over India. It is argued that the during the year the appellant has sold a total number of 6.37 crore tyres and tubes all over the country. It is further argued that the tin plates purchased are in the size of 65 cm. x 15 cm and are pasted on the back side of rickshaws carrying the company's name and the product name. The actual tin plate with the above advertisement was also shown by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as made by the AO in such years. Under the facts and circumstances as discussed above and following the case law (supra). I am of the firm opinion that the expenditure for purchase of the above tin plates is clearly a revenue expenditure allowable u/s 37 of the Act. The impugned disallowance of Rs.35,45,581/- is, therefore, deleted. 3. The only ground taken by the revenue is against the deletion of addition of Rs.35,45,381/- made by the Assessing Officer. The assessee has filed cross objection against the sustenance of the reassessment proceedings. 4. None attended on behalf of the assessee. 5. We have heard the ld. DR. After hearing, the appeal and cross objection are decided as under. As far as the revenue s appeal against the dele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt was treated as revenue expenditure allowable u/s 37 of the Act. In our considered view, this expenditure on the tin plates used for the advertisement by placing on the rickshaws at various places at all over India was a revenue expenditure. Similar expenditure was treated as revenue in preceding and succeeding assessments by revenue authorities. Although the principles of res judicata is not applicable to the income-tax proceedings, however, in the past and subsequent years, such expenditure has been treated as revenue in nature and without any cogent reason, the revenue should not have disturbed the same. Therefore, we find no fault in the order of the CIT (A) in granting the relief. 6. As far as the cross objection of the assessee, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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