The Assessing Officer treated advertisement and sales promotion expenditure incurred for promotion of the assessee’s Thane project as part of work-in-progress. The Tribunal held that the assessee had developed the project on its own account and not under a construction contract. Consequently, the advertisement and sales promotion expenditure constituted allowable revenue expenditure under section 37(1). (AY. 2015-16 & 2016-17).
Dy. CIT v. Piramal Estates (P.) Ltd. (2025) 123 ITR 488 (Mum.)(Trib.)
S. 37(1) : Business expenditure-Advertisement and sales promotion expenses-Real estate project undertaken on ownership basis-Revenue expenditure allowable.
Leave a Reply