In the appeal filed by the Revenue ,the issue before the court is whether the upfront fees and brokerage fees for issuing non-convertible debentures should be allowed fully in the assessment year 2004-05 or should be spread over two years for which non-convertible debentures were issued. There is no dispute between the parties that expenses have to be allowed as a deduction, but the only issue is whether it should be allowed fully in one year or it should be spread over a period of two years. The rate of tax for the assessment years 2004-05 and 2005-06 is same. Following the judgement in   CIT  v. Nagri Mills Co. Ltd.(1958) 33 ITR 681 ( Bom)( HC) has observed that if the tax rate is uniform in  two years then, the deduction whether claimed by the assessee in the year one or two is of no consequence to the revenue.  Referred PCIT v. Rakesh Prakash Timblo (2019) 106 taxmann.com 255 /415 ITR 344 ( Bom)( HC), CIT v. Excel Industries  Ltd  (2013) 358 ITR 295 (SC) .Court also held that  in Madras Industrial Investment Corporation Ltd. v. CIT  (1997 ) 225 ITR 802 (SC)   and  Taparia Tools Ltd  v. JCIT (2015) 372 ITR 605( SC)  the  Hon’ble Supreme Court has held that the revenue expenditure is to be allowed in the year in which it is incurred but it could be spread over only at the instance of an assessee . Appeal of Revenue is dismissed . (AY.2004 -05)   (ITA NO.661 of 2018 dt .8-1 -2025 )