TaxTMI 
TaxTMI 
2017 (7) TMI 421
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....on the ground that :- "On the facts and in the circumstances of the case, the ld. CIT (A) erred in holding that the expenses incurred on market research were revenue expenses and not to be amortized u/s 35D(2)(a)(iii) as held by AO, though the same were incurred in connection with extension of its undertaking as per the details submitted by the assessee during the assessment proceeding." 2. Briefly stated facts of this case are : during the scrutiny proceedings, Assessing Officer noticed that the assessee company has claimed a sum of Rs. 52,05,586/- in the profit & loss account under the head 'market research'. Assessee called upon to explain as to why these expenses shall not be capitalized as the assessee was deriving long term benefit....
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....on (2),- (i) before the commencement of his business, or (ii) after the commencement of his business, in connection with the extension of his undertaking or in connection with his setting up a new unit, the assessee shall, in accordance with and subject to the provisions of this section, be allowed a deduction of an amount equal to one-tenth of such expenditure for each of the ten successive previous years beginning with the previous year in which the business commences or, as the case may be, the previous year in which the extension of the undertaking is completed or the new unit commences production or operation : Provided that where an assessee incurs after the 31st day of March, 1998, any expenditure specified in subsection (2),....
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....ement of business in connection with the extension of his undertaking or in connection with its setting up a new unit. Moreover, marketing survey are conducted by the company on ad hoc basis / on day-to-day basis to achieve the target/to enhance sale and no enduring benefit in any manner used to be there. 8. Ld. CIT (A) has categorically thrashed the issue at page 24 of the impugned order, "that nature of the services to be provided by the consultants engaged by the assessee company have been brought on record by way of a sample agreement with one of such consultants at United Kingdom but the assessee had also demonstrated the increase in the revenue during the year under assessment which can be attributed to the enhanced marketing efforts....