DCIT, New Delhi V. M/s Oxigen Infovision Pvt. Ltd, New Delhi

ITA 4367/DEL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3595 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-11-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2009-2010
• Appeal Filed On: 06-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Revenue expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : F : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SMT BEENA PILLAI, JUDICIAL MEMBER ITA NO.4367/DEL/2015 ASSESSMENT YEAR: 2009-10 DCIT, CIRCLE-19(1), CR BUILDING, NEW DELHI. VS. OXIGEN INFOVISION PVT. LTD., 201-202, HIMALAYA HOUSE, 65 VIJAYA BLOCK, LAXMI NAGAR, NEW DELHI. PAN: AAACO8071G (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE DEPARTMENT BY : SHRI ATIQ AHMAD, SR. DR DATE OF HEARING : 16.11.2017 DATE OF PRONOUNCEMENT : 17.11.2017 ORDER PER R.S. SYAL, VP: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER PASSED BY THE CIT(A) ON 27.04.2015 IN RELATION TO T HE ASSESSMENT YEAR 2009-10. ITA NO.4367/DEL/2015 2 2. THE FIRST GROUND IS AGAINST THE DELETION OF D ISALLOWANCE OF RS.66,32,673/- ON ACCOUNT OF ADVERTISEMENT EXPENSES TREATING THE SAME AS REVENUE EXPENDITURE INSTEAD OF CAPITAL EXPENDITU RE TREATED BY THE ASSESSING OFFICER. 3. BRIEFLY STATED, THE FACTS OF THIS GROUND ARE THA T THE ASSESSING OFFICER TREATED ADVERTISEMENT EXPENSES OF THE PRODU CT NAMED `OXICASH AS CAPITAL IN VIEW OF THE FACT THAT ITS BENEFIT WAS GOING TO BE REAPED IN COMING YEARS. 3/4 TH OF SUCH EXPENDITURE WAS DISALLOWED. THE LD. CIT(A) DELETED THE DISALLOWANCE BY RELYING ON CERTA IN ORDERS. 4. WE HAVE HEARD THE LD. DR AND PERUSED THE RELEVAN T MATERIAL ON RECORD. THERE IS NO APPEARANCE FROM THE SIDE OF TH E ASSESSEE DESPITE NOTICE. WE ARE, THEREFORE, PROCEEDING TO DISPOSE O F THIS APPEAL EX PARTE QUA THE ASSESSEE. THERE IS NO DISPUTE ON THE FACT T HAT THE ASSESSEE GENUINELY INCURRED EXPENSES ON ADVERTISEMENT DURING THE YEAR. THOUGH ITS BENEFIT AS PER THE ASSESSING OFFICER WAS ALSO T O BE DERIVED IN SUCCEEDING YEARS, BUT, THE FACT THAT THE ADVERTISEM ENT, BEING A REVENUE EXPENDITURE, WAS INCURRED DURING THE YEAR, CANNOT B E DENIED. THE LD. ITA NO.4367/DEL/2015 3 CIT(A) HAS RIGHTLY TAKEN COGNIZANCE OF THE ORDER PA SSED BY THE DELHI BENCH OF THE TRIBUNAL IN PEPSICO HOLDING INDIA PVT. LTD. , WHEREIN EXPENDITURE ON GLOW SIGNS/NEON SIGNS WAS TREATED AS DEDUCTIBLE. SUCH VIEW HAS BEEN APPROVED BY THE HON'BLE DELHI HIGH CO URT. ADVERTISEMENT EXPENDITURE OF ENDURING NATURE HAS ALSO BEEN HELD AS DEDUCTIBLE AS REVENUE EXPENDITURE BY THE HONBLE DE LHI HIGH COURT IN CIT VS. SALORA INTERNATIONAL LTD. (2009) 335 ITR 1 96 (DEL ). IN VIEW OF THE FOREGOING DISCUSSION, WE ARE SATISFIED THAT THE LD. CIT(A) HAS RIGHTLY DECIDED THIS ISSUE IN THE ASSESSEES FAVOUR. 5. THE ONLY OTHER GROUND IS AGAINST THE DELETION OF DISALLOWANCE OF DEPRECIATION OF RS.6,718/- CLAIMED AT HIGHER RATE O F 60% ON UPS AS AGAINST 15% ALLOWED BY THE ASSESSING OFFICER, TREAT ING IT AS PLANT & MACHINERY. THE LD. CIT(A) DELETED THE DISALLOWANCE BY RELYING ON AN ORDER PASSED BY THE DELHI BENCH OF THE TRIBUNAL IN THE CASE OF STEEL AUTHORITY OF INDIA VS. ADDL. CIT . IN OUR CONSIDERED VIEW, THIS ISSUE IS NO MORE RES INTEGRA IN VIEW OF THE JUDGMENT OF THE HON'BLE DELHI HIGH COURT CIT VS. BSES YAMUNA POWERS LTD. 2010 TIOL-636-HC-D EL-IT ITA NO.4367/DEL/2015 4 AND THE SPECIAL BENCH ORDER OF THE ITAT IN DCIT VS. DATA CRAFT INDIA LTD. (2010) 133 TTJ (MUM) (SB) 37 . THE IMPUGNED ORDER IS UPHELD ON THIS SCORE. 6. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH NOVEMBER, 2017. SD/- SD/- [BEENA PILLAI] [R.S. SYAL] JUDICIAL MEMBER VICE PRESIDENT DATED, 17 TH NOVEMBER, 2017. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.