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TMI Blog2012 (11) TMI 541X X X X Extracts X X X X X X X X Extracts X X X X ..... well as the cross objections for hearing. Accordingly they were heard on 24-07-2012 to dispose of the second ground of appeal as also the cross objection. 2. The first ground raised by the Revenue in the appeal relating to disallowance u/s 14A and invoking the provisions of Rule 8D has already been decided by the Tribunal vide order dated 15-06-2012 and the same will stand. 3. Coming to the next ground of appeal relating to the disallowance of expenditure on advertisement, the brief facts are that the assessee had incurred an amount of Rs. 8,37,35,020/- during the previous year relevant to the assessment year 2007-08. During the course of assessment proceedings, the AO on examination of the Balance Sheet found that Rs. 8,37,35,020/- was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e current year, the same ought to be allowed in the current year. The learned counsel for the assessee further submitted that the expenditure incurred with respect of product launch, sales promotion and advertisement is revenue expenditure in the course of business ought to be allowed in the year in which it was incurred. It cannot be spread over the next two years on the ground that the amount spent is a large amount. He relied on the following decisions : i) CIT v. Jai Parabolic Springs Ltd, 306 ITR 42 (Del), ii) CIT v. Mangal Tirth Estates Ltd, 303 ITR 366 (Mad), iii) DCIT v. Core Health Care Ltd, 308 ITR 263 (Guj.), iv) DCIT v. M/s. Godrej Tea Ltd, 4 ITR (Trib) 649 (Mum) v) Guruji Entertainment Network v. ACIT (ITAT -Del). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned CIT(A) by following various decisions of the jurisdictional High Court, allowed the claim of the assessee. 7. In the case of Ashima Syntex Ltd. (supra), the Special Bench of the Tribunal has considered various decisions. The Special Bench considered the very same issue and held that so far as corporate advertisement expenses, exhibition expenses, public relation expenses, cultural programme expenses, quota expenses and sales promotion expenses were concerned, since said expenses did not result in creation of any tangible or intangible asset and, moreover, there was no evidence regarding accrual of any specific revenue in years under consideration or subsequently over a defined period with incurring of said expenditure, those expenses c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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