AO cannot treat Advertisement expenses as deferred revenue expenditure

Brief of the Case ITAT Delhi held In the case of DCIT vs. M/s. Spice Retail Ltd. that the expenditure incurred by the assessee on advertisement has been treated as revenue in nature. It is not open for the AO to treat an expenditure as party revenue in nature and balance 25% as deferred revenue expenditure. The whole expenditure is allowable in the year in which it was incurred. Facts of the Case The assessee is engaged in the business of retail trading of mobile handsets and other electronic items and their accessories and also carrying repair works. For the year under consideration, the asse...