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TMI Blog2015 (11) TMI 1193X X X X Extracts X X X X X X X X Extracts X X X X ..... tment and training expense - revenue v/s capital expenditure - CIT(A) delted the addition - Held that:- The expenditure incurred by the assessee on advertisement having been treated partly as revenue in nature balance 25% should not have been treated as deferred revenue expenditure and it is allowable in the year in which it was incurred. In the light of decision of ITAT in assessee’s own case we have no alternative except to hold that the order passed by Ld. CIT(A) is in accordance with law being in consonance with the view taken by ITAT in assessee’s own case for the earlier year. We, therefore, dismiss the appeal filed by revenue. - I.T.A. No. 4283/Del/2013, C.O. No.172/Del/2014 - - - Dated:- 2-7-2015 - SHRI D. MANMOHAN, HON BLE VICE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. The assessee contended before Ld. CIT(A) that it was engaged in the retail trading of multi-brand mobile handsets. During the year under consideration, it incurred an aggregate expenditure of ₹ 52,24,737/- on account of advertisement and marketing expenditure consisting of expenses on customer incentive scheme of ₹ 10,41,617/- and display through carry bags of ₹ 41,83,120/- and details of expenditure were submitted before the AO. It was contended that it pertains to brand building and it does not give the assessee any enduring benefit. It was therefore, contended that the entire expenditure is allowable as revenue in nature. It was also contended that the AO erred in holding that part of expenditure w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure, for launch of a new product, is allowable as deduction. Attention of Ld. CIT(A) was also invited to several decisions of other Hon'ble High Courts / ITAT wherein it was held that expenditure incurred on advertisement and marketing cannot even be treated as deferred revenue expenditure even if the assessee has treated the same in that fashion in its books of accounts. It was mainly contended that 75% of expenditure having been allowed as revenue expenditure there is no dispute about the fact that the advertisement expenditure was revenue in nature in which event disallowance of 25% out of revenue expenditure is not permissible and in this regard, relied upon the decision of ITAT, Delhi Bench in the case of associate company i.e. Spi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction as revenue in nature in its entirety in the 1st year. Consequently, the assessee is not entitled to claim benefit of depreciation on such expenditure. 9. Aggrieved by the order o Ld. CIT(A), revenue is in appeal contending, inter alia, that the advertisement expenditure and recruitment and training expenditure gives the assessee enduring benefit and hence, the Ld. CIT(A) ought to have treated the same as capital in nature. By way of cross objection, assessee contended that in the event of treating this expenditure as capital in nature, then assessee should be allowed benefit of depreciation @ 25%. 10. At the time of hearing Ld. counsel for the assessee placed before us a copy of order of ITAT G Bench, New Delhi in the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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