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2018 (10) TMI 721 - AT - Income TaxClaim of business expenditure u/s 37(1) - concept of Revenue Recognition - assessee had not set up the business during the relevant previous year - advertisement & business promotion expenses - Held that:- This would be in the nature of general expenses not attributable to any project and payment to the extent it relates to the aforesaid expenses cannot be capitalised and had to be allowed as revenue expenditure. There is also another agreement for advertising with Ogilvy dated 5.9.2011. This agreement is for specific purpose of advertising of projects and therefore payments made for the said purpose will have to be treated as attributable to specific project and capitalised. The AO is directed to examine the payment of ₹ 15,65,000 and to the extent it relates to corporate brand identity exercise and logo design should be allowed as revenue deduction. The AO will allow opportunity of being heard to the assessee. - Decided partly in favor of assessee. Legal & professional charges - Held that:- the assessee had engaged professionals for carrying out liasoning work in relation to Sarjapur site. Therefore payment made to these two persons are referable to a particular project and therefore these expenses have to be capitalised to the concerned project. - Decided against the assessee.
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