ITAT Bangalore Judgments — October 2018

The Tribunal held that advertisement expenses related to corporate brand identity and logo design are general expenses and should be allowed as revenue expenditure. However, legal and professional charges for liaisoning work on a specific project must be capitalized.

The Tribunal held that while the assessee admitted receipt of professional income, making the additional grounds regarding the survey statement inadmissible, a deduction for expenses incurred in earning this income should be allowed. The Tribunal allowed 25% of the gross receipts as expenses.

The Tribunal held that while the assessee admitted receipt of professional income, making the additional grounds regarding the survey statement inadmissible, a deduction for expenses incurred in earning this income should be allowed. The Tribunal allowed 25% of the gross receipts as expenses.

The Tribunal held that while the assessee admitted receipt of professional income, making the additional grounds regarding the survey statement inadmissible, a deduction for expenses incurred in earning this income should be allowed. The Tribunal allowed 25% of the gross receipts as expenses.

The Tribunal held that the revenue authorities were not justified in rejecting the assessee's explanation regarding the source of cash deposits. Following the Karnataka High Court's decision, the Tribunal stated that past withdrawals from a bank account cannot be disbelieved solely on the grounds of improbability.

The Tribunal found that the assessee did not get a proper opportunity of being heard before the CIT(A) due to the absence of his erstwhile CA. Therefore, the order of the CIT(A) was set aside.

The Tribunal held that the business of the assessee was set up during the relevant previous year, based on earning commission income, directors' travel for business exploration, and taking premises on lease for manufacturing. Therefore, the revenue expenses should be allowed as deductions.

The Tribunal held that the CIT(Exemptions) erred by assuming the assessee was a trust with a trust deed, when the assessee is an authority incorporated under a State Act. The matter was remanded to the CIT(Exemptions) for fresh consideration.

The Tribunal dismissed the Revenue's appeal as not maintainable, following CBDT Circular No. 3/2018 which mandates not filing appeals with a tax effect below Rs. 20 lakhs. The assessee's cross-objection was also dismissed as not pressed.