COMMISSIONER OF INCOME TAX Vs. SPICE DISTRIBUTION LTD.

JUDGEMENT

(1.) The present appeal by the revenue relates to the Assessment Year 2009-10 and impugns the order dated 21.02.2014. The Income Tax Appellate Tribunal ('Tribunal' in short) has followed its own decision for the Assessment Year 2008-09, wherein, the following observations were made:

(2.) The learned senior standing counsel states that she does not have any instructions and cannot state whether the revenue has preferred an appeal against the findings recorded by the Tribunal in the respondent- assessee's own case for the Assessment Year 2008-09.

(3.) We have examined the aforesaid reasoning given by the Tribunal and find the same to be meritorious and deserves affirmation. The respondent-assessee was engaged in the service of trading of mobile handsets, its accessories and mobile repairing. For the purpose of business, it had incurred expenditure of Rs. 11,51,40,004/ on advertisement. The Assessing Officer treated the said expenditure as deferred revenue expenditure and 25% of the said amount i.e. Rs. 2,87,85,001/- was allowed in the year, observing that the balance amount would be allowed in next three years. He also directed initiation of penalty proceedings under Section 271(1)(c) of the Income Tax Act, 1961 ('Act' in short) on account of the said addition.