2010 (12) TMI 871

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... f they are covered under provisions of Section 35D (CIT Vs Bharat Aluminium Co. Ltd. [2009 -TMI - 96479 - DELHI HIGH COURT]).
SHRI D.K. SRIVASTAVA, AND MS. SUSHMA CHOWLA, JJ. Represented by: Appellant by : Shri N.K. Saini Respondent by : Shri Vineet Krishan ORDER PER SUSHMA CHOWLA, J.M, : The appeal by the Revenue is against the order of the Commissioner of Income -tax (A) - II, Ludhiana .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... curred expenditure of Rs.13.50 lacs and Rs. 17.08 lacs in the assessment years 2004-05 and 2005-06 respectively, towards foreign traveling and sample expenses for development of export marketing, which was treated as deferred expenditure by the assessee. The said expenditure was claimed over the period of five years. The Assessing Officer rejecting the explanation of the assessee observed that sin .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... d expenses. The total expenditure incurred in assessment year 2004-05 was Rs. 13. 50 lacs and in assessment year 2005-06 Rs. 17.08 lacs. The assessee claimed deduction of Rs.6,23,077/ - in the year under assessment on account of the said deferred revenue expenditure. Similar claim of deferred revenue expenditur was made in the assessment years 2004-05 and 2005-06, which were allowed to the assesse .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... tances I would have gone by the approach of the A.O. Under mercantile system of accounting revenue expenditure is to be allowed in the assessment year in which it has been incurred. Therefore, the entire expenditure was to be allowed in the assessment year 2004-05 and 2005-06 respectively. However in the case of the appellant similar stand has been accepted in the assessment year 2004-05 and 2005- .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ecision has duly referred to the submission of the Departmental Counsel that such deferred expenditure could be allowed only under the provisions of Section 35D of the Act. Yet in view of the ratio of above mentioned decision of the Hon'ble Supreme Court, the Hon'ble Delhi High Court decided similar issue in favour of the assessee." 6. In the entirety of the facts and circumstances of the case we .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X