Case Law Details
Nokia India Pvt. Ltd. Vs ACIT (ITAT Delhi)
The issue under consideration is whether the marketing expenditure incurred on account of issuance of handsets on free of cost basis is allowed as business expense or not?
ITAT states that the assessee is engaged in manufacture, import and sale of mobile handsets. The assessee has given mobile handsets to its employees, dealers, sale personnel etc. for free of cost and thus no longer owned the said handsets. Thus, the said cost was rightly taken as business expenditure by the assessee and was rightly reduced from the inventory. This issue is decided in favour of the assessee for A.Ys. 2003-04 by the Tribunal in ITA No. 2445/Del/2010 order dated 30.01.2018 which was also affirmed by the Hon’ble High Court in ITA No. 955/2018 order dated 31.08.2018. Thus, the appeal filed by the assessee is allowed.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal has been preferred by the assessee against the final assessment order dated 28.08.2015 passed u/s 144C read with section 143(3) of the Income Tax Act, 1961 (hereinafter called as ‘the Act’) for Assessment Year: 2011-12.
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