CIT v. Salora International Ltd.

Seagram Manufacturing (P) Ltd vs. Addl CIT Range-8

In the result, assessee’s appeals are partly allowed for statistical

Bench: Shri S.V. Mehrotra : & Shri Sudhanshu Srivastava :

…2014 (Delhi H.C.), 10. Sony India Pvt. Ltd. Vs. DCIT, [2008] 114 ITD 448 (Del.), 11. CIT Vs. Modi Revlon Pvt. Ltd., [2012] 26 taxmann.com 133 (Del.), 12. CIT Vs. Monto Motors Ltd., [2012] 19 taxmann.com 57 (Del.), 13. CIT Vs. Salora International Ltd., [2009] 308 ITR 199 (Del.) 10.2 On the other hand, learned DR placed reliance on the order of the Assessing Officer. 10.3 We have heard the rival submissions and perused the details of the expenditure incurred placed at pages no. 76 to 79 of the paper book. From the details, it is clear that the expenditure is incurred only towards sales promotion and on advertisem…

Seagram Manufacturing (P) Ltd vs. Addl CIT Range-8

In the result, assessee’s appeals are partly allowed for statistical

Bench: Shri S.V. Mehrotra : & Shri Sudhanshu Srivastava :

…2014 (Delhi H.C.), 10. Sony India Pvt. Ltd. Vs. DCIT, [2008] 114 ITD 448 (Del.), 11. CIT Vs. Modi Revlon Pvt. Ltd., [2012] 26 taxmann.com 133 (Del.), 12. CIT Vs. Monto Motors Ltd., [2012] 19 taxmann.com 57 (Del.), 13. CIT Vs. Salora International Ltd., [2009] 308 ITR 199 (Del.) 10.2 On the other hand, learned DR placed reliance on the order of the Assessing Officer. 10.3 We have heard the rival submissions and perused the details of the expenditure incurred placed at pages no. 76 to 79 of the paper book. From the details, it is clear that the expenditure is incurred only towards sales promotion and on advertisem…

DCIT Circle 8 (1) vs. Seagram Manufacturing (P) Ltd

In the result, assessee’s appeals are partly allowed for statistical

Bench: Shri S.V. Mehrotra : & Shri Sudhanshu Srivastava :

…2014 (Delhi H.C.), 10. Sony India Pvt. Ltd. Vs. DCIT, [2008] 114 ITD 448 (Del.), 11. CIT Vs. Modi Revlon Pvt. Ltd., [2012] 26 taxmann.com 133 (Del.), 12. CIT Vs. Monto Motors Ltd., [2012] 19 taxmann.com 57 (Del.), 13. CIT Vs. Salora International Ltd., [2009] 308 ITR 199 (Del.) 10.2 On the other hand, learned DR placed reliance on the order of the Assessing Officer. 10.3 We have heard the rival submissions and perused the details of the expenditure incurred placed at pages no. 76 to 79 of the paper book. From the details, it is clear that the expenditure is incurred only towards sales promotion and on advertisem…

DCIT Circle 8 (1) vs. Seagram Manufacturing (P) Ltd

In the result, assessee’s appeals are partly allowed for statistical

Bench: Shri S.V. Mehrotra : & Shri Sudhanshu Srivastava :

…2014 (Delhi H.C.), 10. Sony India Pvt. Ltd. Vs. DCIT, [2008] 114 ITD 448 (Del.), 11. CIT Vs. Modi Revlon Pvt. Ltd., [2012] 26 taxmann.com 133 (Del.), 12. CIT Vs. Monto Motors Ltd., [2012] 19 taxmann.com 57 (Del.), 13. CIT Vs. Salora International Ltd., [2009] 308 ITR 199 (Del.) 10.2 On the other hand, learned DR placed reliance on the order of the Assessing Officer. 10.3 We have heard the rival submissions and perused the details of the expenditure incurred placed at pages no. 76 to 79 of the paper book. From the details, it is clear that the expenditure is incurred only towards sales promotion and on advertisem…

DCIT, New Delhi vs. M/S. C.B. Richard Ellis South Asia Pvt. Ltd., New Delhi

In the result, both the appeals filed by the revenue are dismissed

Bench: Shri A.T. Varkey & Shri Prashant Maharishi

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘B’ : NEW DELHI) BEFORE SHRI A.T. VARKEY, JUDICIAL MEMBER and SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA No.709/Del./2012 (ASSESSMENT YEAR : 2007-08) ITA No.775/Del./2013 (ASSESSMENT YEAR : 2008-09) ACIT, Circle 3 (1), vs. M/s. C.B. Richard Ellis South Asia Pvt. Ltd., New Delhi. Ground Floor, PTI Bu;ilding, 4, Parliament Street, New Delhi – 110 001. (PAN : AAACC9308A) (APPELLANT) (RESPONDENT) ASSESSEE BY : S/Shri Gautam Jain and Piyush Kumar Kamal, Advocates REVENUE BY : Shri B.R.R. Kumar, Senior DR O R D E R PER A.T. VARKEY, JUDICIAL MEMBER : These app…

ACIT, New Delhi vs. M/S. Cb Richard Ellis South Asia Pvt. Ltd., New Delhi

In the result, both the appeals filed by the revenue are dismissed

Bench: Shri A.T. Varkey & Shri Prashant Maharishi

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘B’ : NEW DELHI) BEFORE SHRI A.T. VARKEY, JUDICIAL MEMBER and SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA No.709/Del./2012 (ASSESSMENT YEAR : 2007-08) ITA No.775/Del./2013 (ASSESSMENT YEAR : 2008-09) ACIT, Circle 3 (1), vs. M/s. C.B. Richard Ellis South Asia Pvt. Ltd., New Delhi. Ground Floor, PTI Bu;ilding, 4, Parliament Street, New Delhi – 110 001. (PAN : AAACC9308A) (APPELLANT) (RESPONDENT) ASSESSEE BY : S/Shri Gautam Jain and Piyush Kumar Kamal, Advocates REVENUE BY : Shri B.R.R. Kumar, Senior DR O R D E R PER A.T. VARKEY, JUDICIAL MEMBER : These app…

DCIT, New Delhi vs. M/S. Sbi Cards Payments & Services Pvt. Ltd., New Delhi

In the result, the appeal of the revenue is dismissed

Bench: Shri N.K. Saini & Shri A.T. Varkey

…fade away and do not have an enduring impact. If there is a lack of advertisement by one, the vacuum and space is taken over by others with benefit and advantage to the detriment of the first. Reference can be made to CIT vs. Salora International Ltd. (2009) 308 ITR 199 (Delhi) and the subsequent decision in ITA No.597/2014 titled CIT vs. M/s Spice Distribution Ltd. decided on 19th September, 2014.” Respectfully following the aforesaid decision of the Hon’ble jurisdictional High Court, we uphold the order of the CIT (A) on this issue and reject the ground no.3 of the revenue’s appeal. 10. In the result, the ap…

DCIT, New Delhi vs. M/S. Vodafone Mobile Services Ltd., New Delhi

In the result, revenue’s appeal is dismissed

Bench: Shri S.V. Mehrotra : & Shri A.T. Varkey:Asstt. Yr: 2008-09 Dcit, Circle 17(1), Vs. M/S Vodafone Mobile Services Ltd., New Delhi. C-4B, Okhla Industrial Area, New Delhi. Pan: Aaacs 4457 Q ( Appellant ) (Respondent) Appellant By : Sh. P. Pardiwala Sr. Adv. Shri Deepak Chopra Adv. Ms. Nena Singh Adv. Respondent By : Shri Nihor Ranjan Pandey Add. Cit (Dr) Date Of Hearing : 05/10/2015. Date Of Order : 30/12/2015. O R D E R Per S.V. Mehrotra, A.M..: This Appeal Has Been Preferred By The Assessee Against The Order Dated 13.5.2013 Passed By The Cit(A)-19, New Delhi Pertaining To Ay 2008-09. Following Grounds Of Appeal Have Been Raised: 2. Brief Facts Of The Case Are That The Assessee Company Was Engaged In The Business Of Providing Cellular Mobile Telephony Network In The Telecom Circle Of Delhi. The Assessee Filed Its Return Of Income Declaring Total Income Of Rs. 5,81,140/-. The Assessment Was Completed At A Total Income Of Rs. 537,13,54,673/-, Inter Alia, By Making Following Additions/ Disallowances: - Disallowance Of Commission Expenditure Rs. 6,24,87,988 - Disallowance Of Advertisement Expenditure Rs. 9,17,179/-

…iture - Allowability of - Assessment years 2001-02 and 2002-03 - Expenditure on publicity and advertisement is to be treated as revenue in nature allowable fully in year in which it is incurred [In favour of assessee] (ii) CIT v Salora Internationalltd [2009] 308 ITR 199 (DELHI) Advertisement expenditure for launching products is revenue expenditure (iii) CIT v Pepsico India Holdings (P.) Ud.[2012] 207 Taxman 5 (Delhi) Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of - Assessee incurred certain expenditure on advertising and marketing of its products and claimed it as business ex…

DCIT, New Delhi vs. M/S. Fortune Park Hotels Ltd., Gurgaon

In the result, appeal of the revenue is dismissed

Bench: Sh. A.T.Varkey, Jm & Sh. Prashant Maharishi, Am A Y 2010-11

…constantly allowing the payments as royalty expenditure, there was no justification on its part to change the view at its sweet will, without any change of facts and circumstances during the year under consideration. 17. In 'CIT vs. Salora International Ltd.' 308 ITR 199 (Del), it was held that where there was a direct nexus between 7 Fortune Park Hotels ltd. the advertisement expenditure and the business of the assessee, the expenditure was a revenue expenditure. 18. All the above decisions are squarely applicable to the present case and they have been correctly appreciated by the Ld. CIT (A). No decision to the…

DCIT, New Delhi vs. M/S Dlf Homes Panchkula Pvt. Ltd., New Delhi

In the result appeal of the department is dismissed

Bench: Sh. N. K. Saini, Am & Sh. C. M. Garg, Jm Ita No. 4344/Del/2012 : Asstt. Year : 2009-10 Dcit, Vs M/S Dlf Homes Panchkula Pvt. Ltd. Circle-10(1), 1-E, Naaz Cinema Complex, New Delhi Jhandewalan Extn., New Delhi (Appellant) (Respondent) Pan No. Aabch8735M Assessee By : Sh. R. S. Singvi, Ca Revenue By: Smt. Parwinder Kaur, Sr. Dr Date Of Hearing : 31.07.2015 Date Of Pronouncement : 14.10.2015 Order Per N.K. Saini, A.M. This Is An Appeal By The Department Against The Order Dated 24.05.2012 Of The Ld. Cit(A)-Xiii, New Delhi.

…5. The reliance was placed on the following case laws: " CIT Vs Modi Olivetti Ltd. 84 TTJ 1038 (Del) 7 DLF Homes Panchkula Pvt. Ltd. " CIT Vs Berger Paints (India) Ltd. 254 ITR 503 " DCIT Vs Core Healthcare Ltd. 308 ITR 263 " CIT Vs Salora International Ltd. 308 ITR 199 " CIT Vs Aluminium Industries Ltd. 234/214 ITR 541 (Ker) " Empire Jute Co. Ltd. Vs CIT 124 ITR 1 (SC) " CIT Vs Citi Financial Consumer Finance Ltd. 2011 335 ITR 29 (Del) 6. It was further submitted that there is a distinction between setting up of the business and the commencement of the business and as per Income Tax Act, 1961 what is relevant i…

Pvt.Ltd vs. Commissioner of Income Tax -III

…78/- is concerned, this Court notices that the AO himself had taken note of the fact that an identical issue was pending before this Court for a previous year 2001-02 and 2003-04. This Court relying upon the decision in CIT V. Salora International Ltd. (2009) 308 ITR 199 (Delhi) and also CIT Vs. Monto Motors Ltd. (ITA No.978/2011 decided on 12.12.2011) affirms the ITAT’s order. 5. ITA 613/2014 is accordingly disposed of in the above terms. Parties are directed to be present before the ITAT on 20.05.2015. 6. ITA 82/2015- the revenue’s appeal- is directed against the decision of the ITAT which had followed LG Elect…

(Now known as Sony India Limited)

…2015:DHC:2485-DB ITA 16/2014 & connected matters Page 79 of 142 (Also see, CIT versus M/s Spice Distribution Ltd., ITA No.597/2014, decided by the Delhi High Court on 19th September, 2014; and CIT versus Salora International Limited, [2009] 308 ITR 199]) 111. Accepting the parameters of the ‗bright line test‘ and if the said parameters and tests are applied to Indian companies with reputed brands and substantial AMP expenses, would lead to difficulty and unforeseen tax implications and complications. Tata, Hero, Mahindra, TVS, Bajaj, Godrej, Videocon group and several others are both manu…

Commissioner of Income Tax vs. M/S Vodafone Essar South Ltd

…advertisements to remain in public eye, to do business by attracting customers. It is an expenditure of trading nature. The aforesaid aspect has been highlighted by the Delhi High Court in Commissioner of Income Tax Vs. Salora International Ltd., [2009] 308 ITR 199 (Delhi) and Commissioner of Income Tax Vs. Casio India Ltd., [2011] 335 ITR 196.” 22. Referring to the said legal position, this Court recently, in CIT Vs. SBI Cards & Payment Services Private Limited, ITA No. 603/2014 decided on 29.09.2014, observed :- “16. … Section 145 postulates that accounts should give true and fair picture of the…

Commissioner of Income Tax-III vs. Sbi Cards & Payment Services Pvt. Ltd

Bench: The Tribunal, Relating To The Said Assessment Year. 2. For The Sake Of Convenience, We First Take Up Ita No.603/2014. The 2014:Dhc:5128-Db

…away and do not have an enduring impact. If there is a lack of advertisement by one, the vacuum and space is taken over by others with benefit and advantage to the detriment of the first. Reference can be made to CIT vs. Salora International Ltd. (2009) 308 ITR 199 (Delhi) and the subsequent 2014:DHC:5128-DB Page 14 of 19 decision in ITA No.597/2014 titled CIT vs. M/s Spice Distribution Ltd. decided on 19th September, 2014. 14. This brings us to ITA No.604/2014. Addition of Rs.17,93,59,566/- was made by the Commissioner of Income Tax (Appeals) after issuing notice of enhancement. The Assessin…

Commissioner of Income Tax-III vs. M/S. Spice Distribution Ltd

…find support from the judgement of the Jurisdictional High Court in the case of CIT vs. 2014:DHC:4851-DB ITA No 597/2014 Page 3 of 6 Salora International Ltd. 308 ITR 199 Delhi wherein considering the advertising expenditure of approximately Rs. 3.08 crores the conclusion of the Tribunal namely that there was direct nexus between advertisement expenditure and the business of the assessee and that the assessee had to incur such expenditure to meet the competition in the Indian market for selling its products…

The Commissioner of Income Tax-II vs. Jubilant Foodwork Pvt. Ltd

The appeal is dismissed

…iation of the whole fact situation before concluding whether the expenditure is in the nature of capital or revenue.” 3. Similar view was also expressed by the Delhi High Court in Commissioner of Income Tax versus Salora International Limited, (2009) 308 ITR 199 (Delhi). The Commissioner of Income Tax (Appeals) and the tribunal have rightly come to the conclusion that; (i) no new asset came into existence on account of payment of franchise fee and (ii) the rights under the agreement were only for the tenure of the agreement and no enduring benefit was derived by the assessee. Further, it was not an…

CIT vs. Spice Communications Ltd

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE R.V.EASWAR

…t the Assesstng Officer lo allow the assessee's claim of deduction on account of advertisentent and publicity expenses in all the three assessment years." 3. fhe aforesaid reasoning and ratio was approved in case of CIT v. Solora Internationol Limited, (2009) 308 ITR 199, wherein a Division Bench of this Court opined: "3. 'l'he first issue that is sought to be raised in this appeal pertains to advertising expenditure of approximately Rs 3.08 crores. According to the Asscssing Officer, the expenditure were incurred for launching of its products. The Assessing Officer was of the view that such expenditure was of an…

CIT vs. Spice Communications Ltd

…t the Assesstng Officer lo allow the assessee's claim of deduction on account of advertisentent and publicity expenses in all the three assessment years." 3. fhe aforesaid reasoning and ratio was approved in case of CIT v. Solora Internationol Limited, (2009) 308 ITR 199, wherein a Division Bench of this Court opined: "3. 'l'he first issue that is sought to be raised in this appeal pertains to advertising expenditure of approximately Rs 3.08 crores. According to the Asscssing Officer, the expenditure were incurred for launching of its products. The Assessing Officer was of the view that such expenditure was of an…

CIT vs. Spice Communications Ltd

…t the Assesstng Officer lo allow the assessee's claim of deduction on account of advertisentent and publicity expenses in all the three assessment years." 3. fhe aforesaid reasoning and ratio was approved in case of CIT v. Solora Internationol Limited, (2009) 308 ITR 199, wherein a Division Bench of this Court opined: "3. 'l'he first issue that is sought to be raised in this appeal pertains to advertising expenditure of approximately Rs 3.08 crores. According to the Asscssing Officer, the expenditure were incurred for launching of its products. The Assessing Officer was of the view that such expenditure was of an…

CIT vs. Spice Communications Ltd

…t the Assesstng Officer lo allow the assessee's claim of deduction on account of advertisentent and publicity expenses in all the three assessment years." 3. fhe aforesaid reasoning and ratio was approved in case of CIT v. Solora Internationol Limited, (2009) 308 ITR 199, wherein a Division Bench of this Court opined: "3. 'l'he first issue that is sought to be raised in this appeal pertains to advertising expenditure of approximately Rs 3.08 crores. According to the Asscssing Officer, the expenditure were incurred for launching of its products. The Assessing Officer was of the view that such expenditure was of an…