COMMISSIONER OF INCOME TAX Vs. PONDS INDIA LIMITED

JUDGEMENT

(1.) THE assessee-company was incorporated on 5-5-1977, for the purpose of taking over the business which was being run by an. American company, Chesebrough Ponds Inc. THE American company had been carrying on business in India by manufacturing and marketing cosmetic products. That same business was continued by the assessee with the aid of plant and machinery that had been owned by the American company and additions made thereto by the Indian company. THE products manufactured remained the same during the assessment year 1980-81.

(2.) IN respect of the expenditure incurred by the assessee on advertisement, publicity and sales Promotion the assessee claimed exemption under section 37(3D) of the INcome Tax Act, 1961, on the ground that it had set up an industrial undertaking. That claim though initially negatived by the assessing officer, was accepted by the Commissioner, whose decision was affirmed in appeal. The revenue, is now before us questioning the correctness of the view of the Tribunal. ,