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TMI Blog2011 (8) TMI 1058X X X X Extracts X X X X X X X X Extracts X X X X ..... MBAY HIGH COURT] . The case of Patel Engineering was also referred to and discussed in CIT v Geoffrey Manners. The undermentioned observations of the Bombay High Court in CIT v Geoffrey Manners, with which we are in complete agreement and which distinguish the case of Patel International, would be suffice to arrive at the conclusion that the appellant being engaged in the business of stock broking and share transactions, the expenditure incurred on ad films by way of advertisements for promotion and marketing of its products, being on the ongoing business, would be of revenue in nature and thus allowable as revenue expenditure - Revenue Appeal dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... e @ 60% on computer peripherals like printers, scanners etc stating that the depreciation @ 60% was allowable only in the case of computers and computer software and was not applicable on computer peripherals. He accordingly disallowed the deduction of ₹ 341,313/- on this count. The assessee preferred an appeal before the CIT(A) which was allowed on both the counts. Consequently, CIT(A) deleted all the additions made by AO. Aggrieved with the order of CIT(A), the revenue preferred an appeal before ITAT which came to be dismissed vide impugned order dated 29th November 2010. The revenue is in appeal before us against the said order of the Tribunal. 2. Vide our order dated 11th July, 2011, we have at the previous stage held that as far ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to and discussed in CIT v Geoffrey Manners (supra). The undermentioned observations of the Bombay High Court in CIT v Geoffrey Manners (supra) with which we are in complete agreement and which distinguish the case of Patel International (supra), would be suffice to arrive at the conclusion that the appellant being engaged in the business of stock broking and share transactions, the expenditure incurred on ad films by way of advertisements for promotion and marketing of its products, being on the ongoing business, would be of revenue in nature and thus allowable as revenue expenditure. 5. In CIT v Geoffrey Manners (supra) in paras 3, 4 and 5, it was observed as under: "The only ground based on which the Revenue has approached this Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sign boards as also T.V. films. The expenditure was held to be revenue in nature. 5. In our opinion the correct test to be applied in such a case would be, that if the expenditure is in respect of an ongoing business of the assessee and there is no enduring benefit it can be treated as revenue expenditure. If, however, and if it is in respect of business which is yet to commence then the same cannot be treated as revenue expenditure as expenditure is on a product yet to be marketed. Considering the above, in our opinion the judgment in Patel International Film Ltd. (supra) is clearly distinguishable. The CIT(A) and the Tribunal on the facts of this case were clearly within their jurisdiction in holding that the expenditure was by way of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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