The Commissioner Of Income Tax-2 v. Abbott Health Care Pvt. Ltd

bsb IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 1151 OF 2012 The Commissioner of Income Tax-2. … Appellant v/s Abbott Health Care Pvt. Ltd. … Respondent Mr.Suresh Kumar for the appellant. CORAM: S.C. DHARMADHIKARI & G.S. KULKARNI, JJ. DATED : 6TH MARCH, 2014 P. C. : 1Heard Mr. Kumar on behalf of the appellant. 2The only submission raised before us by Mr.Kumar is that, this appeal raises substantial question of law and in relation to the claim of advertising expenses. He submitted that the Assessing Officer has disallowed the expenses incurred by the respondent assessee because these expenses have been incurred wholly and exclusively for the purpose of business of the principals of the assessee Company. In other words, they were for the benefit of the principals and not the assessing Company. The Commissioner of Income Tax (Appeals) held that this expenditure cannot be disallowed only on this ground. 3It is fairly stated by Mr.Kumar that an identical question was raised in the case of Nestle India Ltd. v/s DCIT, reported in 111 TTJ 498 (Del.) and Star India (P) Ltd. v/s ACIT, reported in 104 TTJ 1 (Mum)(TM). In Star India (P) Ltd. (supra), it was the very Tribunal which took the view that the Assessing Officer could not have disallowed such advertising expenses and on the ground stated, namely, benefit of the principals and not of the assessee. In the case of Star India (P) Ltd. (supra) dealing with the identical issue, the Tribunal made the observation which has been reproduced in paragraph 16 of the impugned judgment and order. As against the view taken by the Tribunal, in the case of Star India (P) Ltd. it appears that the department approached this Court in appeal but a Division Bench of this Court in Income Tax Appeal No.165 of 2009 (The Commissioner of Income Tax v/s M/s.Star India P. Ltd.) passed an order on 24[th] March, 2009 holding that the issue is purely factual and does not give any rise to a substantial question of law. The Commissioner's appeal was, therefore, dismissed and disposed of. 4We are of the view that the findings recorded in this case and concurrently that the Assessing Officer was in error in disallowing the claim of advertising expenses, does not give rise to the substantial question of law. There cannot be any re-appreciation and reappraisal of the same materials which are essentially factual. The appeal is, therefore, devoid of any merit and is dismissed. (G.S. KULKARNI, J.) (S.C.DHARMADHIKARI, J.)