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TMI Blog2006 (11) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... business. We are in agreement with the Tribunal s finding that the expenses incurred by the assessee for sponsoring the trophy had the ingredient of advertisement of its business and, consequently, the assessee s claim to deduction as expenses wholly and exclusively incurred for the purpose of its business is justified. It will be profitable to notice here that the Tribunal itself has confirmed disallowance of deductions in respect of a benefit match in the assessment order of the previous year in which neither the name of the assessee was published in the brochure issued on the eve of the benefit match nor was it established by any evidence that such expenditure was in the nature of business advertisement. Thus, the distinction reflects th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, even though the assessee is not engaged in the business of cars on hire ? (3) Whether, on the facts and circumstances of the case, the Income-tax Appellate Tribunal was legally justified in holding that the assessee is entitled for higher rate of depreciation on Indian cars even though the assessee is not engaged in the business of running the cars on hire ?" 4. So far as questions Nos. 2 and 3 are concerned, it is common ground between the parties that these questions stand concluded in favour of the assessee and against the Revenue by a judgment of this court in CIT v. Lake Palace Hotels and Motels P. Ltd. reported in [2006] 286 ITR 589 in the present assessee\qs own case for different assessment years. The claim relates to de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see' s name provides enough advertisement value in promoting the business of the assessee. 7. We are of the opinion that the conclusion reached by the Tribunal in considering the sponsorship of the polo club tournament by holding Mewar OMS Polo Trophy by way of advertisement expenses to promote the business of the assessee was a finding correctly reached by the Tribunal. The fact is now so much well established in the commercial world that a judicial notice can be taken thereof that all major tournaments world over are sponsored by one or the other business houses purely to further their business interest. This is an activity of business promotion through advertisement which the sponsoring of the tournaments carries with it. 8. If any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 10. We are in agreement with the Tribunal\qs finding that the expenses incurred by the assessee for sponsoring the trophy had the ingredient of advertisement of its business and, consequently, the assessee\qs claim to deduction as expenses wholly and exclusively incurred for the purpose of its business is justified. 11. It will be profitable to notice here that the Tribunal itself has confirmed disallowance of deductions in respect of a benefit match in the assessment order of the previous year in which neither the name of the assessee was published in the brochure issued on the eve of the benefit match nor was it established by any evidence that such expenditure was in the nature of business advertisement. Thus, the distinction reflect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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