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TMI Blog2012 (2) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, appears that the aforesaid expenditures are being claimed from year to year. Even if the plea of the revenue is accepted, the net effect may be marginal or minimum – Decided against the Revenue - ITA 22/2012, ITA 24/2012 - - - Dated:- 17-1-2012 - MR. JUSTICE SANJIV KHANNA, MR. JUSTICE R.V. EASWAR, JJ. For Appellant: Mr. Anupam Tripathi, sr. standing counsel with Ms. Anusha Singh, Adv. For Respondent: Mr. Salil Aggarwal, Adv. SANJIV KHANNA, J: (ORAL) CM Nos.358/2012 359/2012 in ITA 22/2012 There is delay of 65 days in filing of the appeal and 100 days delay in re-filing of the appeal. Ld. counsel for the respondent-assessee states that he has no objection if the delay are condoned. Statement is taken on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re was deleted by the CIT (Appeals). The tribunal by the impugned orders has affirmed the said deletion and not agreed with the Assessing Officer. 4. The question of deferred revenue expenditure and the judgment of the Supreme Court in the case of Madras Industrial Investment Corporation Ltd Vs. CIT (1997) 225 ITR 802 (SC) was examined and distinguished in CIT Vs. Industrial Finance Corporation of India (2009) 185 Taxman 296 (Delhi) and it was held:- 22. .The learned Counsel for the Revenue had strongly argued that matching concept is to be applied, as per which part of the expenditure had to be deferred and claimed in the subsequent years and, therefore, approach of the AO was correct. However, this argument overlooks that even in Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, in a great measure. In that case, the Supreme Court noted that by decided cases, the courts evolved various tests for distinguishing between the capital and revenue expenditure but no test is paramount or conclusive. Every case has to be decided on its facts keeping in mind the broad picture of whole operation in respect of which the expenditure has been incurred. At the same time, a few tests formulated by the courts were taken note of. One such test which was specifically spelled out and may be relevant for our purpose was "when an expenditure is made not only once and for all, but with a view to bringing into existence of an advantage for which enduring benefit of a trade, the expenditure can be treated as capital in nature and not a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... some years cannot be accepted. In the case of Commissioner of Income Tax Vs. Casio India Ltd. (2011) 335 ITR 196 (Del.), reference was made to the decision in the case of Citi Financial Consumer Fin. Ltd. (supra). It was held that the expenditure incurred on investment and sale promotion was business expenditure under Section 37(1) of the Act and the concept of deferred revenue expenditure should not be accepted at the behest of the Revenue. 7. We may notice in the present case that the assessee has been regularly incurring expenditure on registration of pharmaceuticals products in foreign countries. A similar addition was made in the assessment year 2003-04 and 2004-05 and the additions were deleted by CIT(Appeals). No further appeal w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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