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TMI Blog2017 (5) TMI 1043X X X X Extracts X X X X X X X X Extracts X X X X ..... hese appeals are common in nature, these appeals are clubbed together, heard together, disposed off by this common order for the sake of convenience. First, we take up appeal (ITA No.1404/Mds./13) 2. The first ground in its appeal is with regard to reopening of assessment, and non-issuance of notice u/s.143(2) of the Act before completion of assessment. 2.1 The brief facts of the issue are that the assessee filed return of income for assessment year 2005-06 on 30.10.2005 admitting the income of Rs. 5,09,160/-. The return of income was processed u/s.143(1) of the Act on 14.09.2006. Later on verification of records and materials, it was seen from the schedule 26 & P&L account, under "Administrative and selling expenses" that the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .CIT(A) after quashing the re-assessment order went on deciding the merit of the additions and deleted the additions also. Against this, the Revenue is in appeal before us. 3. We have heard both the parties and perused the material on record. Regarding re-opening of assessment, ld.D.R submitted that there was no original assessment and the return was process u/s.143(1) of the Act. The assessment was re-opened after recording reasons for re-opening the assessment and also by issuing the notice u/s.148 of the Act, sicn ethe assessee has not filed any return of income in response to notice u/s.148 of the Act. There is no question of issuing of notice u/s.143(2) of the Act. In our opinion, considering the escaped income to the assessment where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditions for allowance specified in section 36(1)(vii) and (2) were not fulfilled. Accordingly, in our opinion, re-opening is valid in law. Regarding nonissue of notice u/s.143(2) of the Act where was no return filed by the assessee in response to notice u/s.148 of the Act and the return was not pending for assessment, there is no question of issuing of notice u/s.143(2) of the Act. Being so, we are of the opinion that the nonissue of notice u/s.143(2) of the Act does not make the assessment bad in law. Accordingly, in our opinion, the ground regarding reopening of assessment and non issue of notice u/s.143(2) by Revenue is allowed. 4. The next common ground in all these appeals is with regard to disallowance of advertisement expenses, made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose of business must be determined on a consideration of all the facts and circumstances, and by the application of principles of commercial trading. The question must be viewed in the larger context of business necessity or expediency. If the outgoing or expenditure is so related to the carrying on or conduct of the business, that it may be regarded as an integral part of the profit-making process and not for acquisition of an asset or a right of a permanent character, the possession of which is a condition of the carrying on of the business, the expenditure may be regarded as revenue expenditure. Any liability incurred for the business of obtaining a loan would be revenue expenditure. Ordinarily, revenue expenditure which is incurred whol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penditure was allowable in full. This ground of the Revenue is rejected." In view of the above Order of Tribunal in assessee's own case, we are inclined to decide the case in favour of the assessee. Accordingly, the ground raised by the Revenue in all these appeals stand dismissed. 6. The next common ground in ITA No.310/Mds./13 & ITA No.1164/Mds./16 for assessment year 2009-10 & 2011-12 respectively is with regard to disallowance u/s.40(a)(ia) of the Act with reference to non-deduction of TDS on interest paid bythe assessee on the loan availed from the MBFC. 7. Similar issue came for consideration before the Hon'ble supreme Court in M/s.Palam Gas Agencies Vs. CIT in C.A. No.5517/2-17 dated 3/5/2017 wherein held that the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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