GKB LENS PVT. LTD.,KOLKATA vs. D.C.I.T., CIRCLE - 5(1), KOLKATA

ITA 2308/KOL/2026Status: DisposedITAT Kolkata16 September 2026AY 2022-20236 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that advertisement and sales promotion expenses are recurring in nature and are necessary for sustaining business in a competitive market. It noted that similar expenses were allowed in previous years by the revenue.

What were the facts?

The assessee claimed advertisement and sales promotion expenses of ₹3,22,29,000/-. The AO disallowed these expenses, treating them as capital expenditure, and allowed depreciation. The CIT(A) upheld the AO's decision.

What were the issues?

Whether advertisement and sales promotion expenses are revenue or capital in nature, and whether the revenue can take a different stand in the current assessment year compared to previous years.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, KOLKATA

For Appellant: Shri Soumitra Choudhary &
For Respondent: Shri B.S. Anand, DR
Hearing: 03.09.2026Pronounced: 16.09.2026

Per Rajesh Kumar, AM:

This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 26.05.2026 for the AY 2022-23. 2. The only issue raised in ground nos. 7 to 10 is against the confirmation of addition of ₹2,41,71,750/- by ld. CIT(A) as made by the AO after disallowing the total expenditure on advertisement, publicity and sales promotion of ₹3,22,29,000/- by capitalizing the same and allowing depreciation of ₹80,57,250/- thereon @ 25%. GKB Lens Pvt. ltd; A.Y. 2022-23

3.

The facts in brief are that the assessee is engaged in the business of trading of optical frames, lens

The order continues below.

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