Advertisement expenditure should primarily be treated as revenue expenditure

DCIT Vs Paramount Surgimed Ltd. (ITAT Delhi) Advertisement expenditure is normally to be treated as revenue in nature because advertisements do not have long lasting effect on the general public. The Hon’ble Delhi High Court has also held that under the Income Tax Act there is only a reference to capital or revenue expenditure and there is no reference to deferred revenue expenditure. It has also been held that advertisement expenditure in the present day context should primarily be treated as revenue expenditure unless there are special circumstances and reasons to hold that the expenditure...