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| The Tax Publishers2020 TaxPub(DT) 2569 (Del-Trib) INCOME TAX ACT, 1961
Section 37(1)
Advertisement and sales promotion expenses incurred by assessee were merely for the purpose of publicity of trade name/brand name which resulted into enhancement of sales were allowable as revenue expenditure.
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Capital or revenue expenditure - Expenses - Account of advertisement and sales promotions - No enduring benefit as alleged by AO
Assessee claimed deduction account of advertisement and sales promotions. AO held the same to be of capital in nature on the ground that expenses were incurred in the initial stage of commencement of the business of assessee and it was going to give enduring and long-term benefits to assessee.Held: Advertisement and sales promotion expenses incurred by assessee were merely for the purpose of publicity of trade name/brand name which resulted into enhancement of sales. Therefore same were allowable as revenue expenditure under section 37(1).
Followed:Pr. CIT v. Mail Today Newspapers Pvt. Ltd. Order, dated 17-1-2018 : 2018 TaxPub(DT) 0752 (Del-HC)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14
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