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Case Law Details

Case Name : ACIT Vs Deutsche Asset Management (India) Pvt. Ltd. (ITAT Mumbai)
Appeal Number : ITA No. 7227/Mum/2019
Date of Judgement/Order : 30/05/2023
Related Assessment Year : 2015-16
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ACIT Vs Deutsche Asset Management (India) Pvt. Ltd. (ITAT Mumbai)

ITAT Mumbai held that deduction of unamortized brokerage expenses claimed through revised return of income is duly allowable.

Facts- The present appeal is preferred by the revenue. The revenue is aggrieved by the decision rendered by Ld CIT(A) in granting deduction of unamortized brokerage expenses of Rs.18.05 crores and granting deduction of ESOP expenses of Rs.19,48,373/-.

Conclusion- In the instant case, the assessee has claimed the deduction of unamortized brokerage expenses through revised return of income. Hence, we are of the view that the said claim was rightly made by the assessee.

In the instant case, there is no dispute that the upfront brokerage expenses were incurred during the year under consideration and it was revenue expenditure. Hence, the assessee could claim entire expenditure as deduction in the current year itself. Since the assessee was following a particular method of accounting in the books of accounts with regard to the above said expenditure, it has been claiming deduction in that method in the return of income also. However, as per the decision rendered by Hon’ble Supreme Court in the case of Taparia Tools Ltd, the same would not preclude the assessee from claiming entire expenditure in the current year itself. Accordingly, we are of the view that the Ld CIT(A) was correct in law in deleting this disallowance.

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