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TMI Blog2016 (11) TMI 258X X X X Extracts X X X X X X X X Extracts X X X X ..... en examined. The impugned order further records that identical issue which arose for consideration before the Tribunal in the earlier Assessment Years and similar addition made by the Assessing Officer on account of commission was deleted. These orders of the Tribunal were accepted by the Revenue as no question of law on this issue was raised by the Revenue alluding to the fact that no appeal to the High Court was filed by the Revenue on this issue. Expenditure on advertisement on television - Held that:- The expenditure on corporate advertisement films is in respect of ongoing business. The expenditure for advertisement of a brand or corporate name of an existing ongoing business is in the nature of maintaining the brand and/or corporat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or Counsel, a/w. Mr. Madhur Agrawal, i/b. Mr. Atul Jasani, for the Respondent ORDER P. C. This appeal under Section 260A of the Income Tax Act, 1961 ( the Act ) challenges the order dated 29 October 2013 passed by the Income Tax Appellate Tribunal ( Tribunal ). 2. The impugned order relates to Assessment Year 2006-07. 3. The Revenue has urged the following questions of law for our consideration : (A) Whether on the facts and in the circumstances of the case and in law the Tribunal is justified in deleting the addition made by the Assessing Officer on account of guarantee commission chargeable to its Associate Enterprises? (B) Whether on the facts and in the circumstances of the case and in law the Tribunal was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Bank to determine 3% as the ALP of the commission is not appropriate. This for the reason that the financial year to which the data obtained from HSBC Bank and Allahabad Bank are not indicated. Moreover, the circumstances in which the guarantee was given coupled with the terms and conditions of charging 3% commission by the two Banks not known. Besides, internal comparable available at almost the same rate of commission was not even examined. The impugned order further records that identical issue which arose for consideration before the Tribunal in the earlier Assessment Years and similar addition made by the Assessing Officer on account of commission was deleted. These orders of the Tribunal were accepted by the Revenue as no question o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the expenditure is revenue in nature, even if the same is incurred for promotion of a corporate brand, as it facilitates the business of the Assessee and results in increased sales and profitability. The impugned order further holds that the enduring benefit, if any, on account of brand building would not be in the capital field. (d) Mr. Malhotra, learned Counsel for the Revenue, urges that an expenditure incurred to create/improve a brand would be on capital account. This is in view of the enduring benefit available to the Respondent-Assessee in relation to its brand. It is particularly submitted that amounts received on sale of brand is on capital account and not taxed as Revenue receipts. As also, amount paid to purchase a brand is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the expenditure. If the expenditure consists of merely facilitating the assessee to carry on business more profitably leaving the fixed capital untouched, it would be on revenue account. The entire expenditure, the Court observed, has to be looked at from a businessman's point of view. In the present facts, the expenditure on account of corporate advertisement is to essentially maintain the corporate image and not create a corporate image. Further, the impugned order holds on facts that the corporate advertisement expenditure facilitates the business having a direct impact on sales and profitability of the Respondent-Assessee. (f) In the above circumstances, the view taken by the impugned order that corporate advertisement enhan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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