2016 (4) TMI 159

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....ainst the order of the CIT(A)-V, New Delhi dated 18.10.2006 on the following ground: "1. The learned CIT(A) has erred on facts and in law in directing the Assessing Officer to allow brand promotion expenses of Rs. 56,78,515/- when the same had rightly been considered by the Assessing Officer as expenditure, which granted benefits of enduring nature and which called for allowance over a period o....

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.... the same is deferred over a period of five years as per accounting policy followed by the assessee. In view of this, the AO allowed only 1/5th of above expenses and disallowed 4/5th because the assessee will get benefit of these expenses over the years. 3. Aggrieved by the order of the Assessing Officer, the assessee filed an appeal before the CIT(A) and the ld. CIT(A) allowed the appeal of th....

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....e Revenue in this matter for the assessment year 2001-02. This expense is covered u/s. 37(1) of the Act. In the Income-tax Act, there is no any provision for deferred revenue expenditure. There are only two types of expenditure considered in the I T Act - either capital or Revenue. In this regard he has placed reliance on the order of ITAT in ITA No. 3135 & 3136/Del./2005 for the assessment year 2....

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....ion, this contention is not tenable in law. Firstly, the concept of deferred revenue expenditure is not known under the Income-tax Act. The expenditure can be either capital expenditure or revenue expenditure. If the expenditure is revenue in nature and claimed u/s. 37, the same is allowable in whole and cannot be spread over number of years. Admittedly, the advertisement and publicity expenses ar....