Full Text
ITA 613/2014
SONY ERICSSON MOBILE COMMUNICATIONINDIA PVT.LTD.
Appellant
Through Mr. Deepak Chopra, Mr. Harpreet ' Ajmani and Ms.Akansha Choudhary, Advs.
Through Mr. Kamal Sawhney, sr. standing counsel with Mr. Shekhar Garg and
Mr.Mukul Mathur,Advs.
COMMISSIONER OFINCOME TAX-III Appellant
Through Mr.Abhishek Sharma,Adv.
Through Mr. Deepak Chopra, Mr. Harpreet Ajmani and Ms.Akansha Choudhary, Advs.
HON'BLE MR.JUSTICE R.K.GAUBA
22.04.2015
ORDER
1. These are cross appeals by the assessee and the revenue against the 2015:DHC:11053-DB order ofthe ITAT dated 31.3.2014 in ITA No.836/Del/2014. The assessee urges two questions oflaw i.e. the deletion ofRs.12,27,51,778/- being 10% of total expenses claimed under the advertisements and sales promotion expenses made from the income ofassessee. It also urges that the ITAT's ruling on expenditure towards AMP incurred by the assessee-in respect of which theITAT had remitted the matter for reconsideration by the AO in the light ofits Special Bench ruling in LG ElectronicsIndia Pvt. Ltd.
V. ACIT (ITA No. 5140/DEL/2011 reported in (2013) 152 TTJ (Del)(SB)273) is erroneous.
4. The Division Bench ruling of this Court in Sony Ericsson Mobile Communications India Pvt. Ltd. V. Commissioner ofIncome Tax(ITA NO. 16/2014 decided on 16"" March,2015)now covers the appeal instead ofthe ruling in L G Electronics(supra). As far as the addition is concerned,the appeal is remitted to theITAT. In this case inlightofSonyEricsson Mobile (supra) as far as allowability ofRs.12,27,51,778/- is concerned, this Court notices that the AO himselfhad taken note ofthe fact that an identical issue was pending before this Court for a previous year 2001-02 and 2003-04. This Court relying upon the decision in CIT V. Salora International Ltd. (2009) 308 ITR 199 (Delhi) and also CIT Vs. Monto Motors Ltd. (ITA No.978/2011 decided on 12.12.2011)affirms theITAT's order.
5. ITA 613/2014 is accordingly disposed ofin the above terms. Parties are directed to be presentbeforetheITAT on 20.05.2015.
6. ITA 82/2015-the revenue's appeal- is directed againstthe decision of the ITAT which had followed LG Electronics. In terms of that special bench ruling,selling expenses were held to be excluded. The special bench ruling on thataspect has been confirmed by the Division Benchjudgmentin Sony Ericsson Mobile Communications India Pvt. Ltd. (supra). In these circumstances,question oflaw does not arise. ITA 82/2015 is consequently dismissed.
S.RAVINDRA BHAT,J v. R K G JBA,J