CIT v. Citi Financial Consumer Finance Ltd.

Swaro vs. Ki India Pvt. Ltd., New Delhi

In the result, all the appeals of the assessee and the Revenue are allowed for statistical purpose

Bench: Shri Pramod Kumar & Shri K. Narasimha Chary

…through the record in the light of the above submissions, and found that in ITA No.5621 and 5494/Del/2014 for the Assessment Year 2004-05 while following the decision of the Hon’ble Delhi High Court in the case of CIT vs Citi Financial Consumer Fin Ltd (2011) 335 ITR 29 (Delhi), it was held that the entire expenditure on publicity and advertisement is allowable fully in the year in which it is incurred and a similar view is adopted for the Assessment Year 2002-03, 2004-05 in ITA No. 5622 and 5497/Del/2014. The same view is taken by the Tribunal in ITA 4080/Del/2013 and 1287/Del/2015 for the Assessment Years 2006-…

ACIT, New Delhi vs. M/S. Swarovski India Pvt. Ltd., Gurgaon

In the result, all the appeals of the assessee and the Revenue are allowed for statistical purpose

Bench: Shri Pramod Kumar & Shri K. Narasimha Chary

…through the record in the light of the above submissions, and found that in ITA No.5621 and 5494/Del/2014 for the Assessment Year 2004-05 while following the decision of the Hon’ble Delhi High Court in the case of CIT vs Citi Financial Consumer Fin Ltd (2011) 335 ITR 29 (Delhi), it was held that the entire expenditure on publicity and advertisement is allowable fully in the year in which it is incurred and a similar view is adopted for the Assessment Year 2002-03, 2004-05 in ITA No. 5622 and 5497/Del/2014. The same view is taken by the Tribunal in ITA 4080/Del/2013 and 1287/Del/2015 for the Assessment Years 2006-…

Biotrobnik Medical Devices India P.Ltd, New Delhi vs. DCIT, Circle-3(1), New Del;Hui

The appeal is allowed

Bench: Shri Kuldip Singh & Shri Prashant Maharishibiotrobnik Medical Devices India Vs. Dcit, P. Ltd, Circle-3(1), Unit No. 805-807, 8Th Floor, New Delhi Commercial Complex, Dlf Tower-B, Jasola, New Delhi Pan: Aadcb1386Q (Appellant) (Respondent)

…ading over of the revenue expenditure, which is not disputed over the years. It was further held that the claim of the assessee is squarely covered by the various decisions relied upon by the learned CIT – A such as CIT vs. city financial consumer finance Ltd 335 ITR 29, Amar raja Batteries Limited vs. ACIT 91 ITD 280 et cetera. Even otherwise, it is not the claim of the lower authorities that the assessee has incurred the advertisement and sales promotion expenditure not for the purposes of the business of such expenditure are in genuine. The only claim of the learned assessing officer is that the assessee has i…

Prabhatam Advertising Pvt. Ltd., Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…s covered by the decision of the Tribunal in assessee’s own case for the Assessment Year 2011-12 in ITA No.1439/Del/2015, wherein this Tribunal following the decision of Hon'ble Delhi High Court in the case of Citi Financial Consumer Finance Ltd., reported in 335 ITR 29 (Del.) have deleted the same addition. 11. Learned Department Representative on the other hand strongly relied upon the order of the ld. CIT(A). 12. From the perusal of the impugned order, it is seen that assessee has incurred expenditure of Rs.1,62,39,484/- on construction of Bus Queue Shelter on BOT basis. The entire expenditure has been claim…

M/S. Biotronik Medical Devices India Pvt. Ltd., New Delhi vs. ITO, New Delhi

In the result, the appeal of the assessee is allowed partly

Bench: Smt. Diva Singh & Shri O.P. Kantassessment Year: 2009-10

…peal, inter alia, observing that there is no concept of deferred revenue expenditure. He observed that the genuineness of the expenditure has no-where being disputed by A.O. He relied on following decisions: " CIT Vs Citi Financial Consumer Fin. Ltd. (201 1) 335 ITR 29 (Del) " Amar Raja Batteries Ltd. Vs ACIT (2004) 91 ITD 280 (Hyd.) " JCIT Vs Modi Olivetti Ltd. (2005) 4 SOT 859 (Delhi) " ACIT Vs Medicamen Biotech Ltd. (2005) 1 SOT 347 (Delhi) " Hero Honda Motors Ltd. Vs JCIT (2005) 3 SOT 572 (Delhi) " Charak Pharmaceuticals Vs JCIT (2005) 4 SOT 393 (Mumbai) " CIT Vs Industrial Finance Corporation of India (2209…

ACIT, New Delhi vs. M/S. Prabhatam Advertising Pvt. Ltd., New Delhi

In the result, the appeal of the Revenue is dismissed

…r under consideration and disallowed balance amount of Rs.96,14,068/-. 4.3 Before the Ld. CIT(A), the assessee made detailed submission and relied upon the decision of the Hon’ble Delhi High Court in the case of City Financial Consumer Finance Ltd reported in 335 ITR 29 (Del) and others decisions. The Ld. CIT(A) after considering the submission of the assessee, deleted the disallowance of Rs.96,14,068/-. 4.4 Before us, the Ld. DR relied on the order of the Assessing Officer. On the contrary, the Ld. Counsel of the assessee relied on the finding of the Ld. CIT(A) on the issue in dispute. 4.5 We have heard the riva…

DCIT, New Delhi vs. M/S. Delhi International Airport Pvt. Ltd., New Delhi

In the result appeal of the revenue in ITA No

Bench: Shri Amit Shukla & Shri Prashant Maharishiassessment Year: 2007-08 Acit, Vs. M/S. Delhi International Airport Pvt. Ltd. Circle 10(1) Udaan Bhawan, Terminal 1B, New Delhi Indira Gandhi International Airport, New Delhi. Pan No. Aaccd3570F (Appellant) (Respondent) Assessment Year: 2007-08 Dcit, Vs. M/S. Delhi International Airport Pvt. Ltd. Circle 10(1) Udaan Bhawan, Terminal 1B, New Delhi Indira Gandhi International Airport, New Delhi. Pan No. Aaccd3570F (Appellant) (Respondent) Co No. 226/Del/2011 (Arising Ita No.2720/Del/2011) Assessment Year: 2007-08

…e year in which it is incurred. Unlike in the instant case, where the claim for deduction has been made in the return of income, in that case, the claim was made for the first time before the appellate authorities. " CIT vs. Citi Financial Consumer Fin Ltd - 335 ITR 29 (Del HC) - Payment of advertisement expenses was claimed as revenue in nature. According to the AO, benefit accrued from the advertisement campaign over a period of several years, and 18 ACIT vs. Delhi International Airport Pvt. Ltd. DCIT vs. M/s.Delhi International Airport Pvt. Ltd. & M/s.Delhi International Airport Pvt.Ltd. vs.ACIT therefore,…

ACIT, New Delhi vs. M/S Delhi International Airport Pvt. Ltd., New Delhi

In the result appeal of the revenue in ITA No

Bench: Shri Amit Shukla & Shri Prashant Maharishiassessment Year: 2007-08 Acit, Vs. M/S. Delhi International Airport Pvt. Ltd. Circle 10(1) Udaan Bhawan, Terminal 1B, New Delhi Indira Gandhi International Airport, New Delhi. Pan No. Aaccd3570F (Appellant) (Respondent) Assessment Year: 2007-08 Dcit, Vs. M/S. Delhi International Airport Pvt. Ltd. Circle 10(1) Udaan Bhawan, Terminal 1B, New Delhi Indira Gandhi International Airport, New Delhi. Pan No. Aaccd3570F (Appellant) (Respondent) Co No. 226/Del/2011 (Arising Ita No.2720/Del/2011) Assessment Year: 2007-08

…e year in which it is incurred. Unlike in the instant case, where the claim for deduction has been made in the return of income, in that case, the claim was made for the first time before the appellate authorities. " CIT vs. Citi Financial Consumer Fin Ltd - 335 ITR 29 (Del HC) - Payment of advertisement expenses was claimed as revenue in nature. According to the AO, benefit accrued from the advertisement campaign over a period of several years, and 18 ACIT vs. Delhi International Airport Pvt. Ltd. DCIT vs. M/s.Delhi International Airport Pvt. Ltd. & M/s.Delhi International Airport Pvt.Ltd. vs.ACIT therefore,…

ACIT, New Delhi vs. M/S. Globus Spirits Ltd., New Delhi

Appeal is dismissed

Bench: Shri I. C. Sudhir & Shri O. P. Kant

…opment”. No new brand was purchased. The brand development expenses were incurred in the course of existing business of manufacturing and sale of liquor. He placed reliance on the following decisions :- (i) Empire Jute Company Vs. CIT 124 ITR 1 (SC); (ii) 335 ITR 29 (Del.); (iii) CIT Vs. Usha Iron & Ferro Metal Corporation Ltd. 296 ITR 140 (Del) (iv) CIT Vs. Salora International Ltd., 308 ITR 199 (Del); (v) CIT Vs. Liberty Group Marketing Division 315 ITR 125 (P & H); (vi) Sony India Pvt. Ltd. Vs. DCIT 315 ITR 150 (AT) (Del.) (VII) CIT Vs. Core Health Care Ltd. 308 ITR 263 (Guj.) 4.3 On perusal of…

ACIT, New Delhi vs. M/S. Hitz Fm Radio India Pvt. Ltd., Delhi

In the result, appeal of the department is dismissed

Bench: Sh. N. K. Saini, Am & Ms. Suchitra Kamble, Jm Ita No. 4407/Del/2014 : Asstt. Year : 2010-11 Acit, Vs Hitz Fm Radio India Pvt. Ltd., Circle-12(1), M-168, Lower Ground Floor, New Delhi Greater Kailash, Part-Ii, Delhi-110048 (Appellant) (Respondent) Pan No. Aaacch9041D Assessee By : Sh. Sanjiv Sapra, Fca & Sh. Amit, Fca Revenue By : Sh. Amit Lal, Sr. Dr Date Of Hearing : 08.05.2017 Date Of Pronouncement : 08.05.2017 Order Per N. K. Saini, Am: This Is An Appeal By The Department Against The Order Dated 29.05.2014 Of Ld. Cit(A)-Xv, New Delhi.

…ncludes expenses on hoardings, pamphlets, advertisement behind buses expenses relating to promotional events etc. The Hon’ble Delhi High Court in the case of CIT Vs. Casio India Ltd [2011] 335 ITR 196 (Del) and CIT Vs. CITI FINANCIAL CONSUMER FIN. LTD. [2011] 335 ITR 29 (Del) hold that the expenditure on publicity and advertisement is to be treated as Revenue in nature allowable fully in the year in which it was incurred. The assessee’s case is squarely covered by these judgments as well as the judgment of Gujrat High Court in case of DEPUTY COMMISSIONER OF INCOME-TAX v. CORE HEALTHCARE LTD. [2009] 308 ITR 263 (G…

DCIT, New Delhi vs. M/S. Mail Today Newspapers Pvt. Ltd., New Delhi

In the result appeal filed by the revenue stands dismissed

Bench: Sh. N. K. Saini & Smt. Beena A. Pillaidcit Mail Today Newspapers Pvt. Ltd. A Circle-6(1), F- 26, Connaught Place New Delhi Vs. New Delhi Gir/Pan: Aafcm1533J (Appellant) (Respondent)

…Alembic Chemical Works Co.Ltd versus CIT reported in 177 ITR 377; • Hon’ble Delhi High Court in the case of CIT vs. Casio India Ltd., Reported in 335 ITR 196; • Hon’ble Delhi High Court in the case of CIT versus Citi Financial consumer Fin. Ltd., Reported in 335 ITR 29; • Hon’ble Bombay High Court in the case of CIT versus Geoferry manners and company Ltd reported in 315 ITR 134; 10. We have perused submissions advanced by both sides in the light of record placed before us and decisions relied upon by them. 11. Ld. AO has already recorded that year under consideration is 3rd year of since its commencement. This…

M/S.. Synthes Medical Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, both the appeals for assessment years 2007-08 and 2008-09 filed by the assessee are partly allowed for statistical purposes and the appeal filed by the Revenue is dismissed

Bench: Sh. Sudhanshu Srivastava & Sh. O.P. Kant

…t was contended that the expenditure was revenue in nature as it was a case where the assessee adopted to amortize the revenue expenditure in accordance with the judgment in Taparia Tools Ltd. Vs. JCIT 372 ITR 605(SC) and CIT Vs. Citi Financial Consumer Ltd., 335 ITR 29 (Del). It was further submitted that computation of disallowance by the Assessing Officer is not correct and in this regard it was stated that the Revenue has not allowed depreciation on the estimated WDV of the instant year. Furthermore, it was also submitted that even the figures adopted by the Assessing Officer for computing the value of ‘loane…

M/S.. Synthes Medical Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, both the appeals for assessment years 2007-08 and 2008-09 filed by the assessee are partly allowed for statistical purposes and the appeal filed by the Revenue is dismissed

Bench: Sh. Sudhanshu Srivastava & Sh. O.P. Kant

…t was contended that the expenditure was revenue in nature as it was a case where the assessee adopted to amortize the revenue expenditure in accordance with the judgment in Taparia Tools Ltd. Vs. JCIT 372 ITR 605(SC) and CIT Vs. Citi Financial Consumer Ltd., 335 ITR 29 (Del). It was further submitted that computation of disallowance by the Assessing Officer is not correct and in this regard it was stated that the Revenue has not allowed depreciation on the estimated WDV of the instant year. Furthermore, it was also submitted that even the figures adopted by the Assessing Officer for computing the value of ‘loane…

DCIT, New Delhi vs. M/S. Synthes Medical Pvt. Ltd., New Delhi

In the result, both the appeals for assessment years 2007-08 and 2008-09 filed by the assessee are partly allowed for statistical purposes and the appeal filed by the Revenue is dismissed

Bench: Sh. Sudhanshu Srivastava & Sh. O.P. Kant

…t was contended that the expenditure was revenue in nature as it was a case where the assessee adopted to amortize the revenue expenditure in accordance with the judgment in Taparia Tools Ltd. Vs. JCIT 372 ITR 605(SC) and CIT Vs. Citi Financial Consumer Ltd., 335 ITR 29 (Del). It was further submitted that computation of disallowance by the Assessing Officer is not correct and in this regard it was stated that the Revenue has not allowed depreciation on the estimated WDV of the instant year. Furthermore, it was also submitted that even the figures adopted by the Assessing Officer for computing the value of ‘loane…

M/S. Swaro vs. Ki India Private Limited, New Delhi

In the result, the appeal of the assessee is partly allowed and that of

Bench: Shri R.S. Syal & Shri Kuldip Singhassessment Year : 2004-05

…. 14.2. After considering the rival submissions and perusing the relevant material on record, we find that this issue is no more res integra in view of the judgment of the Hon’ble jurisdictional High Court in CIT vs. Citi Financial Consumer Fin. Ltd. (2011) 335 ITR 29 (Del) in which it has been held that the entire expenditure on publicity and advertisement is allowable fully in the year in which it is incurred. We, therefore, uphold the impugned order on this score. Similar view has been taken by the Tribunal in the assessee’s own case for the A.Y. 2002- 03. It is however, made clear that no further deductio…

DCIT, New Delhi vs. M/S. Swaroski India Pvt. Ltd., New Delhi

In the result, the appeal of the assessee is partly allowed and that of

Bench: Shri R.S. Syal & Shri Kuldip Singhassessment Year : 2004-05

…. 14.2. After considering the rival submissions and perusing the relevant material on record, we find that this issue is no more res integra in view of the judgment of the Hon’ble jurisdictional High Court in CIT vs. Citi Financial Consumer Fin. Ltd. (2011) 335 ITR 29 (Del) in which it has been held that the entire expenditure on publicity and advertisement is allowable fully in the year in which it is incurred. We, therefore, uphold the impugned order on this score. Similar view has been taken by the Tribunal in the assessee’s own case for the A.Y. 2002- 03. It is however, made clear that no further deductio…

DCIT, New Delhi vs. M/S Spice Distribution Ltd., New Delhi

In the result, the Revenue’s Appeal and Assessee’s Cross

Bench: Shri H.S. Sidhu & Shri O.P. Kantassessment Year: 2010-11 Dcit, Vs. M/S Spice Distribution Ltd. Circle 9(1), Room No. 163, 60-D, Street No. C-5, Cr Building, New Delhi Sainik Farms, New Delhi - 62 (Pan: Aabch8481N) (Appellant) (Respondent) & Cross Objection No. 12/Del/2014 (In Ita No. 4281/Del/2013) Assessment Year: 2010-11 M/S Spice Distribution Ltd., Vs. Dcit, Circle 9(1), S Global Knowledge Park Room No. 163, Cr Bldg.,New Delhi 191 & 19B, Sector-125, Noida (Up) (Appellant) (Respondent) Department By : Smt. Anima Bernwal, Sr. Dr Respondent By : Sh. Ajay Vohra, Sr. Advocate & Sh. Rohit Garg, Advocate

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘G’ : NEW DELHI) BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER Assessment Year: 2010-11 DCIT, vs. M/S SPICE DISTRIBUTION LTD. CIRCLE 9(1), ROOM NO. 163, 60-D, STREET NO. C-5, CR BUILDING, NEW DELHI SAINIK FARMS, NEW DELHI - 62 (PAN: AABCH8481N) (APPELLANT) (RESPONDENT) AND CROSS OBJECTION NO. 12/Del/2014 (IN ITA NO. 4281/DEL/2013) Assessment Year: 2010-11 M/S SPICE DISTRIBUTION LTD., VS. DCIT, CIRCLE 9(1), S GLOBAL KNOWLEDGE PARK ROOM NO. 163, CR BLDG.,NEW DELHI 191 & 19B, SECTOR-125, NOIDA (UP) (APPELLANT) (RESPONDENT) Depa…

Ge Capital Services India vs. Addl CIT Range 2

In the result, the appeals of the assessee and Revenue are partly allowed for

Bench: Smt Diva Singh & Sh.L.P.Sahu

…ITAT in assessee’s own case in the said year considering the views taken not only by the Apex Court in the case of Taparia Tools Ltd. vs JCIT in Civil Appeal no.6946-6948 of 2004 (S.C) [copy filed in the Court] and CIT vs Citi Financial Consumer Finance Ltd. 335 ITR 29 also but also the Apex Court in Madras Industrial Investment Corporation Ltd. vs CIT 225 ITR 802 relied upon by the CIT(A) allowed the assessee’s appeal relying upon the following observation in the said judgement:- “Ordinarily, revenue expenditure which is incurred wholly and exclusively for the purpose of business must be allowed in its enti…

DCIT Circle 12 (1) vs. G.E. Capital Services India

In the result, the appeals of the assessee and Revenue are partly allowed for

Bench: Smt Diva Singh & Sh.L.P.Sahu

…ITAT in assessee’s own case in the said year considering the views taken not only by the Apex Court in the case of Taparia Tools Ltd. vs JCIT in Civil Appeal no.6946-6948 of 2004 (S.C) [copy filed in the Court] and CIT vs Citi Financial Consumer Finance Ltd. 335 ITR 29 also but also the Apex Court in Madras Industrial Investment Corporation Ltd. vs CIT 225 ITR 802 relied upon by the CIT(A) allowed the assessee’s appeal relying upon the following observation in the said judgement:- “Ordinarily, revenue expenditure which is incurred wholly and exclusively for the purpose of business must be allowed in its enti…