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TMI Blog2021 (3) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... same has been returned back by the postal department with the noting "left". Hence, the bench has directed the revenue to serve the notice. Ld. CIT(DR), vide his letter dated 4.3.2021, has reported to the Tribunal that the notice has been served upon the assessee. Under these circumstances, we are constrained to proceed to dispose of these appeals ex-parte, without the presence of the assessee. 3. Since common issues are urged in these appeals, both the appeals were heard together and are being disposed of by this common order for the sake of convenience. 4. We heard Ld. D.R. and perused the record. The assessee is engaged in the business of manufacture and sale of wines. 5. The first common issue urged in both the years relate to disal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O. noticed that the assessee has incurred huge amount of expenses on these advertisement expenses. In assessment year 2011-12, the turnover of the assessee was Rs. 14.91 crores while the advertisement expenses were Rs. 7.09 crores, which worked out to 50% of the sales. In assessment year 2012-13, the advertisement expenses incurred by the assessee worked out to 40% of the turnover. The A.O. took the view that the assessee has not proved the nexus between advertisement expenses incurred by it and the commercial expediency in incurring the same. Accordingly, he took the view that a portion of advertisement expenses needs to be disallowed. Accordingly, he disallowed 25% of the advertisement expenses incurred by the assessee in both the years u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... making estimated disallowance. Under these set of facts, we are of the view that the A.O. was not justified in disallowing part of advertisement expenditure on estimated basis and the Ld. CIT(A) was not justified in confirming the same. Accordingly, we set aside the order passed by Ld. CIT(A) on this issue in both the years under consideration and direct the A.O. to delete the disallowance in both the years under consideration. 10. The assessee has urged one more issue in assessment year 2013-14, which relates to disallowance of business promotion expenses. We heard Ld. D.R. on this issue and perused the record. The A.O. noticed that the business promotion expenses of Rs. 13.07 lakhs incurred by the assessee was in the nature of capital ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the table (referred above), since the A.O. himself has accepted the same as revenue in nature. With regard to remaining amount of Rs. 7,82,046/-, the Ld. CIT(A) took the view that 25% of the same may be treated as capital in nature. However, he sustained addition of Rs. 5,86,535/- out of the above said amount of Rs. 7,82,046/- and deleted the balance amount of Rs. 1,95,571/-. Aggrieved the assessee has filed this appeal before us. 13. We heard Ld. D.R. and perused the record. The Ld. CIT(A) has discussed about the details of expenditure of Rs. 7,82,046/- as under: "6.4 A perusal of the details of the business promotion expenses shows that it includes expenditure on purchase of bottle stand for display, expenditure on display and testin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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