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TMI Blog2015 (7) TMI 440X X X X Extracts X X X X X X X X Extracts X X X X ..... of the details of the expenses, we notice that these were expenses incurred in the normal course of business and does not partake the character of the capital expenditure. Primarily the Income tax authorities have disallowed 75% of the total advertisement expenses for the reason that the benefit of these expenses would have spilled over to the next year. These advertisement expenses are recurring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- in respect of advertisement expenses. 3. The assessee is a company, engaged in the business of trading in computers. The return of income was filed by the assessee on 08.10.2010 declaring total income of ₹ 75,17,679/-. The assessment was completed u/s 143(3) of the Act vide order dt. 04.01.2013 computing the total income at ₹ 83,24,802/-. The AO disallowed deduction of ₹ 8, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h of March. Clearly the impact of advertisement was spilling over to the next financial year as well and is of enduring nature. The expenditure was onetime expense with the intention of long term benefits spilling over next financial year. The case laws relied upon by the appellant are distinguishable on facts. In view of this the disallowance of advertisement expenses is found to be in order. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dvertisement expenses are recurring expenses incurred for sales promotion. There is no enduring benefit by incurring these expenses. Hence we hold that the disallowance of ₹ 8,07,123/- is not justified on the facts of the case. Accordingly we direct the AO to allow as a business deduction ₹ 8,07,123/-. It is ordered accordingly. 8. In the result the appeal filed by the assessee is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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