DCIT, Central Circle-20, New Delhi-110055 Vs Lotus Herbals Pvt. Ltd.
Case No: ITA No. 5143/Del/2025
Court: Income Tax Appellate Tribunal Delhi Bench ‘E’, New Delhi
Date: 1/15/2026
Parties Involved
appellantDCIT, Central Circle-20, New Delhi-110055
respondentLotus Herbals Pvt. Ltd.
Facts Summary
This appeal by the Revenue pertains to the Assessment Year 2017-18, against the order of CIT(A)-27, New Delhi, which deleted the disallowance of advertisement, sale promotion, and marketing expenses amounting to Rs. 23,57,61,205/- made by the Assessing Officer. The Revenue argues that the disallowance was correct as the expenses were incurred with related parties to reduce profitability and evade higher taxes. The assessee, Lotus Herbals Pvt. Ltd., has successfully claimed similar expenditures i…
Decision in favour of
Revenue
Legal Issues
- 1. Disallowance of advertisement, sale promotion, and marketing expenses amounting to Rs. 23,57,61,205/-
- 2. Disallowance under section 14A r.w.s. Rule 8D of Rs. 42,49,228/-
Precedents Relied Upon
3 precedents cited in this judgement.