Expenses w.r.t promotion for brand Snapdeal are revenue in nature

Last updated: 28 January 2022
Quick Summary
The Delhi Income Tax Appellate Tribunal has ruled that expenses incurred by Jasper Infotech Private Limited for promoting the 'Snapdeal' brand are revenue in nature. The Assessing Officer had argued that a portion of these costs were capital expenditure, intended to create intangible assets. However, the Tribunal found no evidence to support this claim and noted that the Assessing Officer had inconsistently allowed 50% of such expenses as revenue.

Court :
ITAT Delhi

Brief :
The Hon'ble Delhi Income Tax Appellate Tribunal in Additional Commissioner of Income Tax, New Delhi v. M/S Jasper Infotech Private Limited [ITA No 2605/Del/2017 (Assessment Year: 2012-2013) dated November 10, 2021] held that expenses involved for promotion of a brand ‘Snapdeal’ is purely revenue in nature in absence of any contrary evidence.

Citation :
ITA No 2605/Del/2017 (Assessment Year: 2012-2013) dated November 10, 2021

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Bimal Jain
Published in Income Tax
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