Deferred advertisement expenditure

In income tax there are only two types of expense either revenue or capital. As such there is no concept of deferred revenue in income tax. The entire advt. expense would be allowable if it is incurred for business purpose & incurred during the year.

Companies act provisions and income tax provisions are different in many ways.

In this specific query Ishan made a right answer.

thank you ashish andashan. my doubt is in INCOME TAX company is getting benefit by claiming whole expense and shows less profit. but as per books profit is more. so wont IT OFFICER disallow this whole expenditure and cliam more tax ???

No Ao won't disallow any such expenditure, there are judgements in such cases favouring assessee.

If income tax act undisputedly allows den how can ao disallow???????

if book profits are more it's ok, nothing wrong in it.

But then company will be liable to pay tax  At book profit u/s 115JB , as per MAT provisions

can u specify the case law 

no need of case law in  it, the law is very clear

Judgement given  in case of Global Healthline Pvt. Ltd. ITA NO. 3319/Del/2012

Since the expenditure is related to extension of business undertaking, such expenditure can be claimed under section 35D of Income Tax Act.

Such Expenditure may be disallowed by the AO is claimed as revenue expenditure.

Since the expenditure is related to extension of business undertaking, such expenditure can be claimed under section 35D of Income Tax Act.

Such Expenditure may be disallowed by the AO if claimed as revenue expenditure.

Mr. Kartik has perfectly answered the query,,,,

AS-26 has specified that any expense in nature of Deferred Benefits should be written off in the very first year of expenses incurred, no matter how bug the amount is,, Co. should disclose the fact in notes to accounts,,,,,,,,

Thou AS-26 is prevalling since 2006, the Course books  still shows the treatment of Deferred Revenue Expenditure,,, Only Discount on issue and premium on redemption are written off over a period....