9911796707
TMI Blog2007 (9) TMI 244X X X X Extracts X X X X X X X X Extracts X X X X ..... JUDGMENT 1. In pursuance of the order dated August 30, 1997, passed by this court in MCC No. 679/93 the Income-tax Appellate Tribunal, Indore Bench, Indore (in short "the Tribunal"), has drawn up a statement of facts. Be it noted that while this court called the statement of facts the following question of law was framed: "Whether, on the facts and in the circumstances of the case the learned Tribunal was justified in law in holding that the presentation articles worth Rs. 5,31,675 distributed by the assessee are disallowable under section 37(3), read with rule 6B(1)(a)?" 2. The facts which are essential to be stated are that the assessee who was engaged in the trading of breweries incurred an expenditure of Rs. 2,09,040 on 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal has recorded its finding as under: "We have heard the rival parties and gone through the relevant record as also details of the scheme launched by the assessee-company for promotion of its sales. We are in agreement with the learned Commissioner of Income-tax (Appeals) that rule 6B is not applicable with regard to the expenditure disallowed under the marketing assistance as also under the head 'Publicity material'. As regards the expenditure disallowed under trade promotional expenses, we are again in agreement with the learned Commissioner of Income-tax (Appeals) that the expenditure was incurred under a specific scheme; in that boosting of the assessee's sales. We, therefore, endorse the finding of the Commissioner of Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e promotion expenses the articles have been given conditionally and presentation of the articles neither bear the name of the company nor its logo and hence, it cannot be treated as meant for advertisement. Therefore, we are inclined to think that rule 6B would not be attracted and hence, it would come within the trade promotion and not advertisement. We may also clarify that there is no material brought on record that consumer gifts and free gifts were given. What has been given, as the factual matrix would show, are the briefcases on achieving the target and no presentation was carried out. It was given under a definite scheme for promotion of sales and the items were to be presented by the assessee only on attaining some specific targets ..... X X X X Extracts X X X X X X X X Extracts X X X X
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