https://www.taxtmi.com/caselaws?id=764535 Whether sales-promotion provisions represent deductible revenue expenditure: applying the matching principle, ITAT found the assessee created provisions based on incentive policy, settled ~88% against actual payments and regularly reversed unutilised provisions in subsequent year; revenue neutrality and consistent accounting established. Outcome: sales-promotion expenses allowed as business expenditure on matching basis. Whether insurance premiums for an open goods-transport policy are deductible: receipts and premium payment records showed enhancement and renewal of policy and that the Rs. 3,20,000 provision formed part of the actual premium of Rs. 6,45,256. Outcome: insurance expenditure allowed as genuine business expense. Whether interest on delayed payment is capital or revenue in nature: factual matrix and agreement showed instalment settlement for convenience and no connection to acquisition of capital asset; interest merely cost of retaining funds. Outcome: interest allowed as revenue expenditure. en-us Fri, 10 Jan 2025 00:00:00 +0530 Fri, 16 Jan 2026 12:37:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=764535 Whether sales-promotion provisions represent deductible revenue expenditure: applying the matching principle, ITAT found the assessee created provisions based on incentive policy, settled ~88% against actual payments and regularly reversed unutilised provisions in subsequent year; revenue neutrality and consistent accounting established. Outcome: sales-promotion expenses allowed as business expenditure on matching basis. Whether insurance premiums for an open goods-transport policy are deductible: receipts and premium payment records showed enhancement and renewal of policy and that the Rs. 3,20,000 provision formed part of the actual premium of Rs. 6,45,256. Outcome: insurance expenditure allowed as genuine business expense. Whether interest on delayed payment is capital or revenue in nature: factual matrix and agreement showed instalment settlement for convenience and no connection to acquisition of capital asset; interest merely cost of retaining funds. Outcome: interest allowed as revenue expenditure. Case-Laws Income Tax Fri, 10 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=764535