9911796707
TMI Blog2005 (9) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... the ground that the principle of spreading over of allowable revenue expenditure is not permissible in law?" - Tribunal ought to have given appropriate direction when it was deciding the appeals not for the assessment years 1993-94 and 1994-95 only but was also hearing the appeals of later assessment years together and in not doing so, it has resulted in an apparent error of application of the principle enumerated by it. Therefore, we allow this appeal and direct the Tribunal to pass necessary orders - - - - - Dated:- 13-9-2005 - Judge(s) : RAJESH BALIA., R. S. CHAUHAN. JUDGMENT This appeal raises a simple issue which is arising as a result of certain incongruity arising from the Tribunal's own order which is principally not under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nses for a number of years depending upon the period during which the clippings are likely to be used instead of claiming the entire expenses for one year in which the amount has been paid to the producer of the clippings. Actual expenses are incurred and it is spread over from 1991 to 1994-95 as has been noticed by the Tribunal in its order dated January 28, 2002 while disposing of the appeal for a number of assessment years from 1993-94 to 1995-96. While the Assessing Officer has accepted the claim of the assessee for deduction of advertisement expenses as a business expenditure allowable under section 37 on its spread over value for the assessment years 1990-91, 1991-92 and 1993-94. However, while making the assessment under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l expenses incurred for 1990-91, 1991-92, 1992-93 and 1993-94 as according to it, the entire expenses being incurred and spread over for 4 years, it is to be allowed as a whole up to the assessment year 1993-94. However, while coming to the assessment year 1994-95, it was of the opinion that on the principle enunciated by it earlier in Hindustan Zinc Ltd.'s case, the spreading over of such expenditure had to be allowed for a period of three years instead of the period of two years as claimed by the assessee, and, therefore, it directed the deduction of proportionate part of expenditure in a particular year spread over for three years. Following this principle, it allowed 1/3rd of the expenditure incurred in 1993-94 during the year 1993-94 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs the Tribunal spread over to subsequent year 1995-96 for which the assessee has not claimed deduction. This has led to incongruity inasmuch as the Tribunal having accepted the principle of spreading over of expenses for allowance as deduction in giving effect to it has not kept in view the fact situation and not made any appropriate orders in pursuance of its own finding. The Tribunal was also deciding the appeal against the assessee for the assessment year 1995-96 along with it, either it should have given the same treatment to the expenses by extending the spreading over of expenditure incurred on advertisement through video-clippings over three years in accordance with such amount as its conclusion in deducting in proportionate pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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