Advertisement and business promotion expenses incurred on commercial expediency would not be disallowed even if somebody else is benefited

ITAT Delhi (the Tribunal) in the case of DCIT Vs. Maruti Countrywide Auto Financial Services Pvt Ltd. [201 1-TIOL-283- ITAT-DEL] held that expenditure on advertisement and business promotion incurred on the ground of commercial expediency would be treated as normal business expenditure even if somebody other than the taxpayer was also benefited by the said expenditure. Facts of the case The taxpayer was a Non Banking Finance Company engaged in the business of auto finance, lease and hire purchase. As per agreement between the tax payer and Maruti Udyog Ltd (Maruti), the taxpayer has to pay ro...