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TMI Blog2013 (8) TMI 931X X X X Extracts X X X X X X X X Extracts X X X X ..... ment & Training Expenses - Held that:- Identical issue was raised before the Delhi Bench of the Tribunal in the case of Sapient Corporation Ltd Vs. DCIT (2011 (5) TMI 499 - ITAT, DELHI ), wherein after discussing the case in detail, the Tribunal has held that the expenditure incurred on account of recruitment and training expenses cannot be said to be capital expenditure. The issue is thus covered in favour of the assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... Handsets, its accessories and mobile repairing. The assessee claimed the amount of ₹ 7,71,04,765/- on account of advertisement expenses. The assessee was required to furnish the details of such expenses and also to explain as to why not the same may be disallowed and added to total income being incurred for business of enduring nature. The A.O did not agree with the explanation of the assessee that the word "Spice" has been substituted in place of the word "Hot spots " in the name of the assessee company w.e.f. 19/3/2009, hence no such expenses can be said to be related to brand building exercise of "Spice Brand". The A.O held that most of the expenses are made for making brand value whether in the form of schemes of sales, promotion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tisement and sales promotion, assessee had not acquired any fixed capital asset but these expenditures were incurred for earning better profits for facilitating assessee's operation of providing cellular mobile services. The action of the Ld. CIT (A) has been upheld with this finding that the Ld. CIT(A) had rightly allowed assessee's claim in respect of expenditure so incurred. Similar view has been expressed on the issue under almost similar facts in the remaining decisions in the case of ITO Vs. Spice Distribution Ltd (Supra) and Sapient Corporation Pvt. Ltd Vs. DCIT (Supra). The Ld. CIT (A) while deleting the addition in the present case has followed the decision of the Tribunal in the case of Spice Communications Ltd (Supra) and has als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incurred by it do not give benefit of enduring nature, hence, it is not capital in nature. The A.O accordingly disallowed the claimed expenses of ₹ 67,00,746/-as capital in nature. The Ld. CIT (A) has, however, deleted the disallowance accepting the submission of the assessee that it had incurred certain expenses on training and recruitment for its employees in the normal course of its business. It was submitted that an employee appointed today is at liberty to leave the company just after serving it for few days of his appointment. The expenses were incurred by the assessee company to smoothly carry out its day to day business activities with the support of its employees in the normal course of its business. It does not give any end ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Ld. CIT(A) has rightly decided the issue in favour of the assessee with direction to delete the addition in question. The same is upheld. The Ground No-2 is accordingly rejected. 9. Consequently, appeal is dismissed. C.O No- 42/Del/2012 10. IN C.O No- 42/Del/2012, the assessee has objected the action of the Ld. CIT(A) in not adjudicating the alternative grounds raised before him whereby the assessee had questioned the action of the A.O in not allowing depreciation @ 25% on creation of intangible assets on brand building by advertisement and enduring benefit created due to recruitment and training of employees. These objections have become infructuous due to dismissal of the appeal preferred by the revenue against the deletion o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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