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TMI Blog2018 (12) TMI 755X X X X Extracts X X X X X X X X Extracts X X X X ..... ered in the case of CIT vs. Berger Paints (India) Ltd.,[2002 (2) TMI 97 - CALCUTTA HIGH COURT] in favour of the assessee. Considering the nature of business of assessee and that expenses in question were incurred for earning business income, therefore, it was not capital in nature and would not provide any enduring benefit to the assessee. The assessee submitted before A.O. that income on this account has been accounted for during the year itself. The submissions of assessee has not been disputed by the authorities below. Therefore, on the same Head when income is offered for taxation and expenses are incurred to earn the income, therefore, such expenses were clearly revenue in nature. The authorities below have failed to point-out as to wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounted for in the Month of March, 2007. It is further submitted that income on this account has been accounted for during the year itself. The A.O, therefore, noted that the above amount includes the expenses related to promotion and 'publicity' of 'Times of India Kannad' Edition. As is clear from the nature of business of the assessee, that from 01.04.2006 onwards, the assessee has remained only distributor of Times India News Paper and now it is no more responsible for rendering/providing services to Bennett Coalman & Co. in the form of marketing and advertising. Therefore, the claim of 'promotional' and 'publicity' expense of Times of India 'Kannad' Edition are not incurred 'wholly and exclusively', for the purpose of the busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted his remand report which is reproduced in the appellate order in which the A.O. stated that at most, the letter filed by the assessee-company proves the genuineness of the expenses. But, it would not supports the argument of the assessee that the expense is revenue in nature. The letter supports the finding of the AO because it is a new product and assessee-company was entrusted with the responsibility of advertisement before launching the product. Therefore, A.O. opposed to the request of the assessee. The Ld. CIT(A) noted that huge expenses have been debited in the month of March, 2007 on account of expenses towards promotion of Times of India, Kannada edition. The assessee failed to controvert the findings of the A.O. The expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... once for all in any single particular year." 4.1. Learned Counsel for the Assessee, therefore, submitted that the addition may be deleted. 5. The Ld. D.R. on the other hand, relied upon the Orders of the authorities below. 6. We have considered the rival submissions and perused the material available on record. It is an admitted fact that assessee-company is engaged in the business of publishing its weekly news paper Financial Times as well as distribution of news papers and other publications. The A.O. examined the expenditure incurred by assessee on account of selling and distribution expenses because huge expenses of ₹ 14,62,540/- were incurred in the month of March, 2007. The assessee however explained that the expenses were i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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