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2016 (4) TMI 159

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..... Admittedly, the advertisement and publicity expenses are revenue expenses. Admittedly, the advertisement and publicity expenses are revenue expenses. No new asset is created by incurring the expenses. It is also not the case of the AO that the expenses are capital expenditure. The finding of the learned CIT(A) that the expenditure are wholly and exclusively for the purpose of business and which is not challenged in appeal. We, therefore, confirm the deletion of disallowance - Decided against revenue - ITA No. 152/Del/2007 - - - Dated:- 24-2-2016 - H. S. Sidhu, JM And L. P. Sahu, AM For the Appellant : Shri K K Jaiswal, DR For the Respondent : Shri Anil Bhalla, CA ORDER Per L P Sahu This is an appeal filed by the Re .....

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..... the order of the Assessing Officer, the assessee filed an appeal before the CIT(A) and the ld. CIT(A) allowed the appeal of the assessee following the precedent that there was a similar order made by CIT(A) for the assessment year 2001-02. The Revenue aggrieved by the order of ld. CIT(A) is in appeal before the Tribunal. 4. The learned DR relied upon the order of the Assessing Officer. He vehemently opposed the order of the ld. CIT(A) and submitted that the AO has made reasoned order and does not require any interference. He further submitted that the assessee himself has treated it in his books as deferred revenue expenditure over the years, therefore, the tax should also be calculated accordingly. 5. The ld. AR relied upon the order .....

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..... ome-tax Act. The expenditure can be either capital expenditure or revenue expenditure. If the expenditure is revenue in nature and claimed u/s. 37, the same is allowable in whole and cannot be spread over number of years. Admittedly, the advertisement and publicity expenses are revenue expenses. Admittedly, the advertisement and publicity expenses are revenue expenses. No new asset is created by incurring the expenses. It is also not the case of the AO that the expenses are capital expenditure. The finding of the learned CIT(A) that the expenditure are wholly and exclusively for the purpose of business and which is not challenged in appeal. We, therefore, confirm the deletion of disallowance. The judgment relied by the learned DR will not a .....

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