2009 (2) TMI 482

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....ers, started business at Mettupalayam and in the course of time they opened two branches, one at Pollachi and another at Areacode. The initial expenditure for commencement of business in the branches and head office was spread over to be adjusted against income of the ten succeeding years. In other words, the eligible expenditure was to be amortized in ten equal installments. Even though the Asses....

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....l's order is to allow expenditure in terms of the accounting practice followed by the assessee. We are unable to accept the claim of the assessee because there is no provision in the Act to claim the entire expenditure incurred for setting up of a branch in the year of closure of the branch. In fact, the assessee rightly followed the system of writing off the expenditure in a phased manner and we ....