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TMI Blog2012 (9) TMI 942X X X X Extracts X X X X X X X X Extracts X X X X ..... w in deleting the addition made by the Assessing Officer on account of Advertisement Expenses as the assessee has claimed advertisement of Rasna products and the same brand is being used by other concerns of the assessee group. Hence the assessing officer has rightly disallowed advertisement expenses. The action of A.O. should have been upheld. 3. We are deciding this issue by taking the facts of ITA No.1706/Ahd/2010, A.Y. 2007-08. The A.O. has dealt the issue as under:- During the course of assessment proceedings, it was noticed that the assessee has claimed the advertisement expenses of ₹ 1,18,80,923/-. On perusal of the earlier assessment year s order, it is noticed that disallowance has been made out of advertisement exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 under consideration it has incurred advertisement and sales promotion expenses amounting to ₹ 30077136/-, for F.YM. 2006-07 relevant to A.Y. 2007-08 it has incurred advertisement of ₹ 8334373/- therefore, the erroneous and socalled basis of disallowance by the Dept. disappears and by the reasoning of the Dept. itself the advertisement expenditure for the year becomes fully allowable. During the assessment year 2006-07 year Rasna Pvt. Ltd. has incurred advertisement and sales promotion expenditure of ₹ 12.49 crores which was ₹ 19.17 crores in A.Y. 05-06, for A.Y.2007-08 the Rasna Pvt. Ltd., incurred advertisement expenses of ₹ 671.43 lakhs this will show that the assessee has incurred advertisement expendit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to other manufacturer). The disallowance comes to ₹ 35,64,277/-. Penalty proceedings u/s 271(1)(c) are initiated separately for furnishing inaccurate particulars of income. 4. Ld. CIT(A) has deleted this addition by observing as under:- Shri P F Jain, CA attended and submitted before me on 25- 3-2010 that both the grounds are covered by my appellate order dt 31-3-2009 for A Y 2006-07. In earlier assessment year i.e. A.Y. 2004-05 to A.Y. 2005-06, this issue has been decided by me in favour of the appellant vide appellate order No.CIT(A)- XVI/DCIT.10/059/07-08 and No.CIT(A)-XVI/DCIT.10/0220/06- 07 dt. 28-01-2009 and 31-3-2009 respectively. Since the facts are identical, this ground is decided in favour of the appellant. 5. At ..... X X X X Extracts X X X X X X X X Extracts X X X X
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