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Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of (Advertisement expenses) - Whether expenditure incurred by assessee on film production by way of advertisement films was allowable as revenue expenditure - Held, yes [Paras 4 & 5] [In favour of assessee] CASE REVIEW CIT v. Geoffrey Manners & Co. Ltd. [2009] 315 ITR 134/180 Taxman 87 (Bom.) (para 4) followed. CASES REFERRED TO CIT v. Geoffrey Manners & Co. Ltd. [2009] 315 ITR 134/180 Taxman 87 (Bom.) (para 3). ORDER 1. This appeal by the Revenue under Section 260-A of the Income Tax Act, 1961 (the Act), challenges the order dated 5th October, 2011 passed by the Income Tax Appellate Tribunal (the Tribunal). 2. The following question of law has been raised for our consideration:- "Whether on the facts and in the circumstances of the case and in law, the Tribunal is justified in holding the expenditure of Rs.6,43,47,284/- incurred for production of T. V. films and commercials as revenue in nature, without appreciating the fact that the advertisement films are assets which are owned by the assessee and are reusable over an indefinite period of time?" 3. The Tribunal by the impugned order dated 5th October, 2011 dismissed the Revenue's appeal on the ground that the issue arising in the present case is covered against the Revenue by the decision of this Court in CIT v. Geoffrey Manners & Co. Ltd. [2009] 315 ITR 134/180 Taxman 87 . We find that even for the earlier Assessment Years 1997-98, 2002-03 and 2003-04, the appeal of the Revenue on an identical issue from the orders of the Tribunal were dismissed by this Court in Income Tax Appeal Nos.202 of 2011 on 4th July, 2012, Income Tax Appeal (L) No.1321 of 2011 and Income Tax Appeal (L) No.1322 of 2011 on 12th March, 2013. 4. In spite of the issue being covered by the decision of this Court in Geoffrey Manners & Co. Ltd. (supra) as well as by the order dated 4th July, 2012 in Income Tax Appeal No.202 of 2011 in respect of Assessment Year 1997-98, the Revenue has chosen to persist with this Appeal. However, not only the appeal memo does not indicate any reason why the Revenue is seeking to appeal against order which…

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