2016 (5) TMI 33

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..... by the decision of this Court in Seagram Distilleries Pvt. Ltd. v. CIT (2015 (10) TMI 491 - DELHI HIGH COURT). Consequently, the appeals are admitted as far as this question is concerned and the question is answered in the negative i.e. in favour of the Revenue and against the Assessee. The impugned order of the ITAT to that extent is set aside. Expenditure incurred on brand creation - Held that:- .....

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..... e Tribunal ('ITAT') in ITA Nos. 5178/Del/2010 and 1846/Del/2012 for the Assessment Years ('AYs') 2006-07 and 2008-09. 4. The two broad issues urged by the Revenue are: (i) Whether the ITAT erred in accepting the case of the Assessee that making a provision for breakage in transit amounts to provisioning for contingent liability? (ii) Whether the ITAT was justified in holding that the expendit .....

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..... ssioner of Income Tax (Appeals) restricting the brand expenses to only 1/5th for the relevant AYs. The Assessing Officer ('AO') held that the brand expenses were incurred for enhancing the image of the brand and thus created an asset of enduring value. Accordingly the expenditure was treated as capital in nature and disallowed. 7. The ITAT accepted the plea of the Assessee that the said expenditu .....

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