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2014 (9) TMI 732 - HC - Income TaxAdvertisement and marketing expenses – Trading expenses or not - Held that:- The Tribunal has rightly noticed and referred to Commissioner of Income Tax Vs. Pepsico India Cold Drink Ltd. [2012 (6) TMI 256 - DELHI HIGH COURT] - the assessee is entitled to claim deferred revenue expenditure but the AO cannot treat the revenue expenditure as deferred revenue expenditure - the Act itself does not have any concept of deferred revenue expenditure - advertisements do not leave a long lasting and permanent effect in the sense that the product or service has to be repeatedly advertised - Even otherwise advertisement expense is a day to day expense incurred for running the business and improving sales - every year, the assessee has been incurring substantial expenditure on advertisements - Keeping in view the nature and character of the assessee’s business, every year expenditure has to be incurred to make and keep public informed, aware and remain in limelight - This requires continuous and repeated publicity and advertisements to remain in public eye, to do business by attracting customers - It is an expenditure of trading nature – thus, the order of the Tribunal is upheld – Decided against revenue.
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