https://www.taxtmi.com/caselaws?id=260975 Expenditure on advertisement, sales promotion and store setup was treated as revenue expenditure for tax purposes despite being deferred in the books. The key principle applied is that accounting treatment does not determine deductibility under the Income-tax Act; if the outlay is revenue in nature and incurred in the relevant year, it is allowable in that year unless the statute provides otherwise. Deferred recognition in the accounts, by itself, does not justify disallowance. On that basis, the deduction for the full expenditure claimed in the year of incurrence was allowed. en-us Fri, 24 Apr 2015 00:00:00 +0530 Mon, 29 Jun 2015 06:31:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=260975 Expenditure on advertisement, sales promotion and store setup was treated as revenue expenditure for tax purposes despite being deferred in the books. The key principle applied is that accounting treatment does not determine deductibility under the Income-tax Act; if the outlay is revenue in nature and incurred in the relevant year, it is allowable in that year unless the statute provides otherwise. Deferred recognition in the accounts, by itself, does not justify disallowance. On that basis, the deduction for the full expenditure claimed in the year of incurrence was allowed. Case-Laws Income Tax Fri, 24 Apr 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=260975