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JUDGMENT A.K. Menon, J. - This appeal seeks to challenge the order of the Income Tax Appellate Tribunal dated 29th July, 2011 being a confirmatory order recording formation of a majority view pursuant to the order passed by the Third Member dismissing the appeal filed by the revenue. The Appellant seeks to raise following questions :- "(a) Whether in the facts and circumstances of the case and in law, the Hon'ble ITAT is justified in confirming the order of the CIT(A) deleting the disallowance of Rs.4,14,20,843/- made by the Assessing Officer out of advertisement and publicity expenses incurred by the Assessee ? (b) Whether in the facts and circumstances of the case and in law, the Hon'ble ITAT was justified in not taking cognizance of the transfer pricing provisions because, the expenditure incurred by the Assessee by way of advertisement and publicity expenses, substantially benefited the two foreign principals and the Assessee did not receive any compensation on that account from the foreign principals and whether upon the aforesaid consideration, the Hon'ble ITAT was justified in not upholding the order of the Assessing Officer ? (c) Whether in the facts and circumstances of the case and in law, the Hon'ble ITAT was justified in rejecting the alternative claim of the Revenue that the huge advertisement and publicity expenses should be treated as deferred revenue expenditure since, the benefit of the expenditure spread over future years ?" 2. It will be convenient to narrate few facts which led up to present appeal : The respondent - assessee is a company incorporated in India and engaged in the business of distribution of T.V. channels popularly known as National Geographic and History Channel. The assessee - NGC Network (India) P. Ltd. also acts as airtime advertising Sales Representative for its principals NGC Network Asia LLC ("NGC Asia") which operates the National Geographic Channel and Fox International Channels (US) Inc. ("FOX") which owns and operates "the History channel". The Assessee has paid fixed fees to "NGC Asia" and "FOX" in consideration for being appointed as distributor of the two channels. The distribution fees are paid by way of lump…

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