9911796707
TMI Blog2025 (1) TMI 1471X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income Tax Act, 1961 [hereinafter referred to as "the Act"] for the Assessment Years 2016- 17 & 2017-18. 2. The issues except ground no.3 in A.Y. 2016-17 being common and being related to the same assessee from different assessment years the respective appeals of the assessee have heard together and a common order is being passed hereunder. 3. We shall first take up the A.Y. 2016-17 for adjudication purposes. ITA No. 1819/Del/2024 (Revenue's appeal) for A.Y. 2016-17: 4. Brief facts of the case are that the appellant company is engaged in the business of broadcasting of news channels and FM radio. The assessee electronically filed original return of income for A.Y. 2016-17 on 30.11.2016 declaring income of Rs. 1,43,55,33,550/- which w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of advertisement and sales promotion expenses. Learned CIT(A) erred in deleting the addition of Rs. 82,33,577/- on account of disallowance of expenses of Consumption debtors. Learned CIT(A) erred in directing the AO for making verification of the claim of assessee of Leave Encashment amounting to Rs. 77,71,211/-. Learned CIT(A) has erred in deleting the addition on account of Disallowance of 50% of software expenses amounting to Rs. 16,84,803/-. 8. Learned Authorized Representative for the respondent/assessee submitted that learned CIT(A) had directed the learned AO to verify and give relief regarding rental income. The learned AO without rejecting books of accounts had erred in making additions regarding Misc. Expenses. Ground Nos. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or rejecting the claim. Genunity of expenses not doubted and expenses being incurred wholly and exclusively for purposes of business are not disputed by the revenue. So assessee deserves relief. As such learned CIT(A) rightly deleted the addition of Rs. 1,19,33,625/-. 12. Learned CIT(A) deleted the addition of Rs. 1,06,42,710/- on account of disallowance of advertisement and sales promotion expenses on being 1% of total expenditure on the head. Learned CIT(A) appreciated that learned AO did not find any discrepancies in the books of accounts. The books of accounts were not rejected. In the case of assessee's own case, learned CIT(A) for A.Ys. 2011-12 & 2012-13 had decided the issue in favour of the assessee. So the contention of learned AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act amount of the expenditure to treat such expenditure as capital in nature. Relying on judgments of learned CIT(A) and ITAT in appellant's own case, the view taken by learned CIT(A) is meritorious. 17. In view of above material facts and circumstances, the arguments of learned Authorized Representative of department of Revenue being devoid of merit are untenable. The grounds of appeals are dismissed. 18. In the result, appeal in ITA No.1819/Del/2024 filed by the department is dismissed. ITA No.1820/Del/2024 for A.Y. 2017-18 19. As the facts and circumstances except ground no.3 of the above mentioned appeal is admittedly mutatis mutandis similar to the discussed and disposed of in ITA No.1819/Del/2024 hereinabove, we hold accordingly a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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