Market development expense towards sale of product is revenue expenditure: ITAT Mumbai

ARI Healthcare Private Ltd. Vs ACIT (ITAT Mumbai)

ITAT Mumbai held that market development expenses towards sale of product is revenue in nature hence denial of same is unsustainable. Accordingly, market development expenses being revenue expenditure is allowed as deduction.

Facts- The assessee is engaged in the business of manufacturer and sale of pharmaceuticals, medicinal chemicals and botanical products. In course of assessment proceedings, AO noticed that the assessee has debited an amount of Rs.2,16,04,410/-towards sales and marketing expenses. Whereas

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