Assessee had incurred certain advertisement and publicity expenses. The Court held that such expenses need not be included in capital work in progress even if the assessee is following completed contract method. As per AS 2, such expenses are usually excluded from contract cost. Accordingly, since the expenditure was incurred for the purpose of the business, same was held to be allowable. (AY. 1995-96 to 2009-10)(ITA No. 210 of 2003 dt. 20.03.2019)
CIT v. Gopal Das Estates & Housing (P) Ltd. (2019) 308 CTR 201 (Delhi)(HC)
S. 37(1) : Business expenditure–advertisement expenses need not be debited to the capital work in progress when assessee follows completed contract method. [S. 145]