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"Assessee Company was incorporated on 19/08/2013. No business was conducted by the company during the period since incorporation till February, 2015. In the month of February 2015 running business of a property portal in the name of MagicBricks.com was acquired through slump sale from its holding company as part of the restructure of business. The holding company is hosting various websites such as indiatimes.com, simplymarry.com, timesjob.com,:toi,in,et.in etc. The real estate listing portal magicbrick.com was also hosted by the holding company however, with a view to give focused attention to this business and to meet the challenge of competition from the rival real estate listing portal such as 99acres.com and housing.com etc. and to get the further visibility and presence of the web I.T.A. No. 6295/Del/2018 portal hosted by the assessee company in the name of magicbrick.com an advertisement campaign was planned across all media format, as a result of which in a very short spanMagicBricks.com became India's No 1 Property portal and has been adjudged as the most preferred property site in India, by independent surveys. The portal provides a platform for property buyers and sellers to locate properties of interest and source information on the real estate space in a transparent and unambiguous manner. With a view to be everytwhere at once and in order to maintain the confidence of existing as well as to attract new customers and real estate projects across the depth and breadth of India and to create magic brick as a credible and robust brand in this area, the advertisement and the brand promotion expenses were incurred during the year amounting to Rs.20.76 crores. Party wise and media wise details of the same has already been furnished.
9. It was contended by the assessee that it had to resort to advertisement to disseminate the information about services rendered through its website to be able to not only retain customers but also to attract more customers and expand its outreach resulting in more I.T.A. No. 6295/Del/2018 advertisements and more revenue. It was contended that the assessee to make its presence felt in the competitive real estate market ran advertisement campaigns in all forms of media - online, print, radio, television etc. on all India basis to make consumers aware of its presence during the year under consideration. It was contended that Assessee continued the advertisement and promotion drive already undertaken during the year by selling entity wherein RK Swamy BBDO advertising agency to launched a high-pressure Marketing campaign with three TV commercials (Vulture Vision (Giddh ki Aankh)", "Local Bond" and Mighty Hudumba') extending to radio, digital and several other mediums. (Source : information openly available on: prnewswire.comf. Further new and noble advertisement by working in tandem and communicating the proposition of "Property Sahi, Milegi Yahin" and these commercials build on the premise that Magicbricks helps you take the right decision - at every stage of the buying cycle. While the first commercial stressed on the need for choice, the second and third ads drive home the point that Magicbricks provides much more than just listings relevant locality information, going rates and price trends give the buyer the power of knowledge that helps him negotiate the best possible deal before agreeing to one's lifetime extremely expensive commitment. Thus catering to the young urban and semi urban customers.
13. Heard rival submissions perused the orders of the authorities below. The Assessee company was incorporated on 19.08.2013, no business was conducted since incorporation till February, 2015. The I.T.A. No. 6295/Del/2018 Magicbricks portal was founded in 2006 and was hosted by Times Business Solutions Ltd. till 31.03.2013. That w.e.f 01.04.2013, Times Business Solution Ltd. got amalgamated with Times Internet Ltd. In February 2015, running business of a property portal in the name of MagicBricks.com was acquired through slump sale from Times Internet Limited (holding company) as part of the restructure of business. Therefore the instant year was the first year of active operations post slump sales of business.
14. The assessee is hosting a website 'magicbrick.com'. The website mainly sell its webspace for advertisement to various real-estate promotors to showcase their projects and retail properties for sale at the same time making efforts to promote its website amongst the buyers and customers to visit the website for their real estate buying need. Assessee provides web-based platform, brings together various property buyers and sellers to list and/or locate properties of interest and source relevant information to assist in their property buying decisions. Assessee functions in the service e- commerce space which is a new- online platform, breaking away from the traditional model of business of sale of services.