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TMI Blog2014 (5) TMI 626X X X X Extracts X X X X X X X X Extracts X X X X ..... Allowability of expenses incurred on CNBC expansion project – Revenue expenses OR capital expenses – Held that:- The findings of the CIT (A) and Tribunal are concurrent - no advantage of enduring nature has accrued to the assessee - On account of the expanded work and enhanced capacity, the assessee had incurred expenses towards the salaries of professionals and hire charges also towards media professional charges – the nature of the expenditure required it to be treated as one falling u/s 37(1) of the Act, compelled by business purposes and not resulting in any enduring advantage requiring to be treated in the capital stream – Decided against Revenue. - ITA 135/2007, ITA 437/2007, ITA 447/2007 - - - Dated:- 30-4-2014 - S. Ravindra Bhat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ended expansion of the existing business arrangement was not disputed by the Revenue, however, the expenditure for an amount of Rs.57,32,689/- incurred in respect of various items i.e. salary, Media professional charges, equipment hire charges and production expenses were disputed by the revenue. The Assessing Officer disallowed the said expenditure and held that this expenditure resulted in a capital advantage of an enduring nature. The CIT (Appeals) set aside the findings of the Assessing Officer and ITAT also rejected the Revenue's Appeal. In this regard, the findings of the ITAT are as follows:- We have considered the facts of the case and rival submissions. Section 37(1) permits the deduction of expenditure, which is not person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urring the expenditure, which may lead to the inference that there was any stock-in-trade or that any benefit of enduring nature was obtained. It is a matter of fact that the formats and designs tend to become obsolete very fast in the present fast changing environment. Therefore, it is held that the assessee did not derive any benefit of enduring nature and the expenditure was incurred in the course of the business. Thus, it is held that the ld. CIT(A) was right in allowing the deduction of the expenditure. It is contended by the Revenue that though this expenditure would result in the increase of potential Revenue, nevertheless, the fact remains that such benefit was to accrue in the succeeding year. Therefore, as far as this year was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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