Advertisement & Promotion Expenses Allowed as Revenue Due to Non-Project Nature

Samira Realty Projects Pvt. Ltd. Vs ACIT (ITAT Mumbai) The case before the Income Tax Appellate Tribunal Mumbai involved an appeal by the assessee against the order of the Commissioner of Income Tax (Appeals) for Assessment Year 2010–11. The dispute related to whether certain expenses should be treated as revenue expenditure or capitalized as part of work-in-progress (WIP). The assessee, engaged in real estate development of bungalows and villas, followed the Project Completion Method (PCM) of accounting and had a single ongoing project. During scrutiny, the Assessing Officer (AO) observed t...