ACIT, NEW DELHI vs. M/S SPICE RETAIL LTD., NEW DELHI

Briefly stated facts are that the assessee is a company engaged in the business of retail trading of mobile handsets, its accessories and mobile repairing. For the assessment year 2011-12, the assessee filed the return of income on 28/09/2011 declaring a total loss of Rs. 8,89,27,185/- against which the Ld. AO completed the assessment at a loss of Rs.6,60,06,514/-by making certain disallowances, on account of advertisement and marketing expenses and training and recruitment charges. In the appeal preferred by the assessee, Ld. CIT (A) deleted these additions stating that these issues are fully covered in favour of the assessee in their own case by the Tribunal, for the assessment year 2008-09 by way of order dated 30/08/2013 in and for the assessment year 2009-10 by order dated 01.02.2016 in ITA No. 4933/Del/2012, as such, while respectfully following the same, the additions made for this assessment year shall also be deleted. Hence, the revenue is in this appeal before us.

Ld. DR vehemently relied on the assessment order; whereas the Ld. AR submitted that since the Ld. CIT(A) gave relief to the assessee while relying upon the decision of the Tribunal for earlier years, no interference could be made with such an order.

We have perused the impugned order. Ld. CIT(A) recorded a finding that the issues involved in this matter for this assessment year were fully covered by the decisions of the Tribunal for the assessment years 2008-09 and 2009-10 wherein the relief was granted to the assessee on the ground that the Ld. AO did not allow the depreciation on the part of the expenditure incurred far advertisement and marketing, if it all the Ld. AO had to treat a part of such as such expenditure as capital nature. So also it was held by the Tribunal that the Recruitment and Training Expenses incurred by the assessee are allowable as revenue expenditure.

In the result, appeal of the revenue is dismissed.