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TMI Blog2017 (7) TMI 421X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Moreover, to invoke the provisions contained u/s 35D, such expenses are required to be incurred before the commencement of the business or after the commencement of the business in connection with extension of undertaking or in connection with its setting up of a new unit, both these conditions are not fulfilled. So, the expenses cannot be amortized by invoking the provisions contained u/s 35D and ld. CIT (A) has rightly deleted the addition - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enduring nature, the same cannot be capitalized. However, AO being dis-satisfied proceeded to conclude that it being expense of enduring nature is being amortized by invoking the provisions contained under section 35D(2)(a)(iii) of Act but allowed the claim of the assessee to tune of 1/5th of the expenses for the five years and assessed the total income at ₹ 53,72,391/-. 3. Assessee carried the matter before the ld. CIT (A) by way of filing the appeal who has allowed the appeal. Feeling aggrieved, the Revenue has come up before the Tribunal by way of filing the present appeal. 4. We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as if for the words an amount equal to one-tenth of such expenditure for each of the ten successive previous years , the words an amount equal to onefifth of such expenditure for each of the five successive previous years had been substituted. (2) The expenditure referred to in sub-section (1) shall be the expenditure specified in any one or more of the following clauses, namely :- (a) expenditure in connection with- (i) preparation of feasibility report; (ii) preparation of project report; (iii) conducting market survey or any other survey necessary for the business of the assessee; (iv) engineering services relating to the business of the assessee : Provided that the work in connection with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 9. Moreover, to invoke the provisions contained u/s 35D, such expenses are required to be incurred before the commencement of the business or after the commencement of the business in connection with extension of undertaking or in connection with its setting up of a new unit, both these conditions are not fulfilled. So, we are of the considered view that the expenses to the tune of ₹ 52,05,586/- cannot be amortized by invoking the provisions contained u/s 35D and ld. CIT (A) has rightly deleted the addition and the question framed for determination is answered against the Revenue. 9. In view of what has been discussed above, finding no illegality or perversity in the findings returned by ld. CIT (A), the Revenue s appeal is h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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