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2021 (11) TMI 493 - ITAT MUMBAIDeferred brokerage expenditure - Addition made as assessee has not debited such expenditure in its P & L Act. - as per revenue as corresponding income also has not been recoginized as income, thus, the claim of assessee is against the basic principal of matching of revenue with expenditure - CIT-A deleted the addition - HELD THAT:- As decided in own case [2021 (7) TMI 577 - ITAT MUMBAI] assessee has incurred expenditure on brokerage expenditure paid for obtaining investments in mutual funds. The investment made in the funds yields income over a period of years, however the said amount of brokerage expenditure incurred is not refundable to the assessee in any circumstances. Undisputedly, the expenditure is wholly and exclusively for the purpose of business. The concept of deferred revenue expenditure is not there in I.T. Act, which is duly supported by the decision of Hon‟ble Supreme Court in Taporia Tools [2015 (3) TMI 853 - SUPREME COURT]. The expenditure cannot also not be categorized in the capital filed on the plea of enduring benefit, as per the ratio of Hon‟ble Supreme Court in Empire Jute Mills [1980 (5) TMI 1 - SUPREME COURT]. Hence, we have no hesitation to hold that in these circumstances and examining the present issue on the anvil of Hon‟ble Supreme Court decisions as above, the expenditure incurred on brokerage is to be allowed in full in the impugned assessment year, as deferral of the same over a number of years for income tax purposes is not sustainable - Decided in favour of assessee.
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