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TMI Blog2020 (7) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... mes particular amount of time during the given period for broadcasting and advertising then it will be entitled to the consumption incentive. During the year, assessee has passed on this consumption incentive of ₹ 34059992/-. Learned CIT (A) has held that this is the expenditure in the nature of incentive to the advertiser and the assessee has also shown income against this expenditure. Before the Learned CIT-A the assessee demonstrated by producing the copies of the deals of some of the parties and shown that it is not an asset or liability but actual expenditure. In view of this, he held that assessee is eligible for deduction of the above expenditure. Disallowance on account of software expenses - revenue or capital expenditur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,960/- 3. Consumption Debtors ₹ 1,70,86,924/- 4. Leave Encashment ₹ 1,02,21,533/- 2.1 Aggrieved, the assessee approached the Ld. First appellate Authority who gave partial relief to the assessee by deleting the additions pertaining to consumption debtors amounting to ₹ 1,70,86,924/- and software expenses amounting to ₹ 1,32,960/-. Now aggrieved, the department is in appeal before the ITAT and has raised the following grounds of appeal:- 1. That the Ld. CIT (A) has erred on facts and law on relying the order of his predecessors and by treating the liability as ascertained liability without appreciating the fact that the assessee has itself shown the amount as provision for discount not debited to accounts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... favour by dismissing the grounds raised by the department. 6.1 As far as ground No. 1 of the captioned department s appeal is concerned, it is seen that the relevant observations of the ITAT are contained in Para 30 of the order and the same is being reproduced hereunder for ready reference:- 30. We have carefully considered the rival contention and found that the claim of the assessee is that company has given discount to its debtors based on consumption of Airtime during the current year. It filed its detail of the credit balance of the debt. From the details of credit balance of debtors, the learned assessing officer enquired about the details of the consumption debtor of ₹ 34,000,000/- which was explained by the assessee, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appeal of the AO. 6.2 Accordingly, in view of the order of the coordinate bench of the Tribunal, as aforesaid, in assessee s own case, we dismiss ground No. 1 of the department s appeal. 6.3 As far as ground No. 2 is concerned, this issue has been adjudicated by the ITAT in paragraph 27 of the ITAT s order as aforementioned. The same is reproduced hereunder for ready reference:- 27. Ground number 3 of the appeal is with respect to the disallowance deleted of ₹ 427172/- on account of software expenses by treating it as a capital expenditure. During the year, assessee has claimed the software expenses of ₹ 1067931/- and debited is to profit and loss account as expenditure, however, the learned Assessing Officer was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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