Court Rules Ad Spending as Revenue Expense, Not Capital; No Enduring Benefit Justifies Intangible Asset Classification.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Nature of advertisement expenditure - revenue or capital - public memory is very short and, therefore, the companies have to incur advertisement expenditure year after year to keep products fresh in the minds of the public hence such expenditure cannot partake the character of giving any enduring benefit - AO has grossly erred in treating such expenditure as intangible asset - revenue Exp.....