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2015 (8) TMI 467 - HC - Income TaxDisallowance of deferred revenue expenditure in the aggregate incurred towards the product development - Held that:- On a plain reading of section 35 of the Act, we are unable to accept the plea of the learned counsel for the assessee that deferred revenue expenditure could be allowed by way of carry forward. There is no provision under the Income-tax Act which provides for such a method of claiming deferred research and development expenditure. Moreover, the Assessing Officer has allowed the expenses relatable to the year under consideration and disallowed only the expenditure not relatable to the relevant assessment year. It is also not the case of the assessee that the expenditure is relatable to the year under consideration. Therefore, in our firm view, the authorities below were justified in disallowing such a claim made by the assessee. Accordingly, the first question of law is answered against the assessee and in favour of the Revenue. Main plank of the argument of assessee is based on the decision of the Supreme Court in Madras Industrial Investment Corporation Ltd. v. CIT [1997 (4) TMI 5 - SUPREME Court]. However, we find that the said decision relates to the issue of discount on debentures and the said decision does not apply to the facts of the present case. - Decided against assessee.
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