Dismissing the appeal of the revenue the Court held that Sales incentive was payable only after and when dealers had met sales figures from 1-4-2003 to 30-06-2004 in this period .Accordingly the expenditure cannot be disallowed on the ground that it pertaining to earlier year when complete details on account of incentive etc. were furnished. (AY. 2005-06)
PCIT v. Escorts Ltd. (2018) 258 Taxman 402 (Delhi)(HC)
S. 37(1) : Business expenditure – Sales incentive was payable only after and when dealers had met sales figures from 1-4-2003 to 30-06-2004 in this period – Expenditure cannot be disallowed on the ground that it pertaining to earlier year.[ S.145]