TaxTMI 
TaxTMI 
2005 (12) TMI 226
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....sions, binding decisions cited before them and have further erred in passing orders, which are bad in the facts of the case and in law. 2. That on the facts and circumstances of the case and in law, the learned CIT (A) erred in upholding disallowances made by the learned AO of the following expenditures: (a) Advertisement and publicity Rs. 5,28,565 (b) Foreign tours and travelling Rs. 2,79,447 (c) Exhibition expenses. Rs. 10,41,542" 2. Briefly, the facts are that the appellant continues to derive income from manufacture and sale of rotational plastics moulding machinery and maintained its accounts on mercantile basis. T....
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.... and definiteness of approach by the Revenue is necessary in the matter of recognizing the nature of account maintained by the assessee so that the basis of concluded assessment would not be revoked without actually reopening the assessment. This principle was laid down by the Karnataka High Court in the case of CIT vs. sridev Enterprises (1991) 97 CTR (Kar) 80 : (1991) 192 ITR 165 (Kar). The AO ought to have allowed the expenditure in the year under consideration as well. It is also contended that the expenditure incurred is not capital in nature. This expenditure was incurred by the appellant-company for the purpose of its business. The benefit of expenditure incurred was not confined to one year only in which such expenditure was incu....
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....de the disallowance on the premise that the Supreme Court decision in Hazi Lal Mohd. Hiri Works vs. CIT was applicable to the facts of this case. In fact the aforesaid judgment of the Supreme Court is fully distinguishable as in that case the assessee carried on business of manufacture and sale of Biri and followed mercantile system of accounting by two notifications. published in D.P. Gazette in December, 1957. very payment of sales-tax and central sales-tax on sale of Biri, subject to certain conditions. The claim of the appellant that it was not liable to pay any sales-tax from 14th Dec., 1957. was not accepted and held that it was liable to make additional payment of Rs. 1,96.359. This liability was agitated by the assessee without any ....
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....n maintained on mercantile basis. no deduction could be allowed for the amount which has been deferred for claim in the subsequent year. As regards doctrine of consistency the claim of the assessee cannot be allowed in the year under consideration. In asst. yr. 1996-97 the assessee has not maintained any stock register and its accounts were rejected by making ad hoc addition thereto. The learned CIT(A) has already recorded a finding that the assessee has accepted the rejection of accounts and the matter has rested there itself. Its return for asst. yr. 1997-98 was processed under s. 143(1)(a) as per summary scheme and there was no application of mind so as to say that the claim was considered. Even otherwise res judicata and estoppels are n....
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....p. 812 and 813 for coming to the conclusion that the liability should be spread over the period of debentures and allowing claim of the assessee: "It is true that the liability has been incurred in the accounting year, but the liability is a continuing liability which stretches over a period of 12 years. It is, therefore, a liability spread over a period of 2 years. Ordinarily, revenue expenditure which is incurred wholly and exclusively for the purpose of business must be allowed in its entirety in the year in which it is incurred. It cannot be spread over a number of years even if the assessee has written it off in his books over a period of years. However, as the facts may justify an assessee who has incurred expenditure in a particul....
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....ot incurred in the year under consideration. The same are shown to have been incurred in the earlier years, i.e., asst. yrs. 1996-97 and 1997-98 with respect to expenditure on advertisement and publicity, foreign tours and travels and exhibition expenses. There is also no material before us to show that the liability on this account is a continuing liability and benefit thereof is available over a period of three years. If the assessee's claim is that the entire expenditure incurred by him in asst. yrs. 1996-97 and 1997-98 was a revenue expenditure and the same was incurred wholly and exclusively for the purpose of business, the same could have been claimed and allowed to it in those years itself. However, the assessee appears to have not c....