Computer peripherals entitled to depreciation at 60% and advertisement, ad film and website expenses are revenue in nature

CIT Vs Bonanza Portfolio Ltd. (Delhi High Court ) Decided on: 10 August 2011. Appeal No. ITA 833/2011 The expenditure was incurred by the assessee on ad films in respect of an ongoing business and there was no enduring benefit on the same. Hence, it was asses-sable as revenue expenditure, An expenditure incurred on advertisements and websites for sales promotion is revenue in nature. Computer peripherals are entitled to depreciation at 60%. In the assessment proceedings carried out by the Assessing Officer, he disallowed the expenses on advertisement holding the same was to be amortised over...