Appeal dismissed; deferred revenue expenditure cannot alter profits; P&L under Part II Schedule VI governs taxable income SC dismissed the revenue appeal and upheld the HC order that treating deferred revenue expenditure as a device to alter profits is impermissible. The ...
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Appeal dismissed; deferred revenue expenditure cannot alter profits; P&L under Part II Schedule VI governs taxable income
SC dismissed the revenue appeal and upheld the HC order that treating deferred revenue expenditure as a device to alter profits is impermissible. The court held the balance sheet prepared to satisfy shareholders cannot mislead tax authorities; the profit determined from the P&L account prepared from books of account under Part II of Schedule VI governs taxable income. The HC view that such adjustments are merely window dressing was affirmed.
The Supreme Court of India in 2016 (1) TMI 321 - SC Order, dismissed the special leave petitions after condoning the delay. The judges were Mr. A.K. Sikri and Mr. Rohinton Fali Nariman. The petitioner was represented by Mr. P. S. Patwalia, ASG, Mr. S. Wasim A. Qadri, Mr. Arijit Prasad, and Mrs. Anil Katiyar.
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