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2012 (8) TMI 807 - AT - Income TaxDisallowance of deferred revenue expenses written off - CIT(A) deleted the addition - assessee distributed the advertisement expenses towards brand building over a period of four years - Held that:- As decided in ACIT vs. Ashima Syntex Ltd. [2008 (10) TMI 298 - ITAT AHMEDABAD-B] the concept of deferred revenue expenditure is essentially an accounting concept and alien to the Act - deferred revenue expenditure denotes expenditure for which a payment has been made or a liability incurred, which is essentially revenue in nature but which for various reasons like quantum and period of expected future benefit etc., is written off over a period of time e.g., expenditure on advertisement, sales promotion etc. - thus advertisement expenses towards brand building are revenue in nature nor any material has been placed before us by the Revenue, suggesting that any tangible or intangible asset has been created by the assessee - in favour of assessee. Disallowance of bad debts written off - CIT(A) deleted the addition - Held that:- As decided in T.R.F. LTD. Versus COMMISSIONER OF INCOME-TAX [2010 (2) TMI 211 - SUPREME COURT] it is a well-settled law that after 1st April, 1989 it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable. It is enough if the bad debt is written off as irrecoverable in the accounts of the assessee - in favour of assessee.
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