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2011 (3) TMI 622 - HC - Income TaxDisallowance - advertisement and publicity expenditure - Preliminary expenditure or revenue expenditure - it clearly emerges that the expenditure on publicity and advertisement is to be treated as revenue in nature allowable fully in the year in which it was incurred. - Once the assessee claims the deduction for the whole amount of such expenditure, even in the year in which it is incurred, and the expenditure fulfils the test laid down under section 37 of the Act, it has to be allowed - Decided in favour of the assessee The stamp duty paid by the assessee is debited to the agreement stamping fee under the major head of "Rates and taxes" and is claimed as revenue expenditure - Tribunal, however, denounced this reasoning of the Commissioner of Income-tax (Appeals) and accepted the plea that the expenditure incurred had nothing to do with the period of length of time and had no linkage, whatsoever, to any period, the entire expenditure was allowable in the year in which it was incurred - Decided in favour of the assessee Regarding leasehold improvement - It is clear that the Assessing Officer had not gone into the question as to whether the expenditure incurred on leasehold improvements was capital or revenue in nature - assessee has treated part of the said expenditure as capital in nature and depreciation thereon was claimed - Commissioner of Income-tax (Appeals) accepted the stand of the assessee only after verification of the records and arriving at a finding of fact that the expenditure on the afore-said account was revenue in nature - Decided in favour of the assessee
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