Скачать или смотреть Lahore High Court Judgment: Are Publicity Expenses Capital or Revenue? | Naubahar Bottling Case

In this video, we break down the significant judgment passed by the Lahore High Court in the case of M/s Naubahar Bottling Company (Pvt.) Ltd. vs. Commissioner Inland Revenue. We explore the court's decision regarding the tax treatment of massive publicity expenditures and brand promotion costs.

Key Takeaways discussed in this video:

The Dispute: The taxpayer claimed publicity expenses amounting to over Rs. 635 million, which the department disallowed and treated as capital expenditure.



The Verdict: The High Court dismissed the taxpayer's reference application and affirmed the decision of the Appellate Tribunal.


Legal Reasoning: The Court held that expenses creating long-term brand value (like the slogan "Yeh Dil Mangay Aur") are intangible assets under Section 24 of the Ordinance.



Amortization Rule: The judgment clarifies that such intangibles must be amortized over their useful life, or a default period of 25 years if the life is unascertainable.


Case Citation: ITR No.56010 of 2024 Court: Lahore High Court, Lahore


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