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| The Tax Publishers2019 TaxPub(DT) 3051 (Del-Trib) INCOME TAX ACT, 1961
Sedction 37(1)
Advertisement, marketing and promotion expenses incurred by assessee just to enhance sales and profit could not be held to be of capital in nature.
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Capital or revenue expenditure - AMP expenses - In order to remind customers from time-to-time -
Assessee claimed deduction of advertisement, marketing and promotional expenses incurred by it. AO held the expenses to be of capital in nature on the grond that same were giving long lasting benefit to assessee of enduring nature.Held: Assessee had incurred periodical expenses on account of advertisements and sales promotion to increase sales of products in order to remind customer from time to time so that they did not forget the products and its qualities. AO did not bring any material on record to prove that advertisement and sales promotion expenses had created long lasting benefits or any intangible interest to assessee. Therefore, AMP expenses could not be held to be of capital in nature.
Followed:Monto Motors Ltd. 92012) 19 Taxmann.com 57 (Del) and Jubliant Foodworks (P) ltd. (2014) 52 Taxmann.com 215 (Del).Empire Jute Company Ltd. v. CIT (1980) 124 ITR 1 (SC) : 1980 TaxPub(DT) 1083 (SC) and Dy. CIT v. Core Healthcare Ltd. (2009) 308 ITR 263 (Guj).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13 to 2013-14
INCOME TAX ACT, 1961
Section 40(a)(ia)
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