After 1st April not necessary to established the debt is irrecoverable and enough to written off

Last updated: 30 August 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
facts, in brief, as per relevant orders are that return declaring nil income, after set off of business loss of ``568,87,510/- , filed on 31.10.2005 by the assessee, engaged in the business of publishing of telephone directory with yellow pages, was selected for scrutiny with the service of a notice issued u/s 143(2) of the Income-tax Act, 1961 (hereinafter referred to as the ‘Act’) on 19.09.2006. During the course of assessment proceedings, the Assessing Officer (A.O. in short) noticed that the assessee claimed a sum of ``37,03,788/- towards deferred revenue expenses. To a query by the AO, the assessee replied that it incurred expenditure in the FY 2002-03 on advertisement and brand building to build its brand ’GETIT’ and the expenditure was amortised and treated as deferred revenue expenditure. However, the AO did not accept the submissions of the assessee on the ground that these expenses did not fall within the ambit of provisions of section 35D nor resulted in any intangible asset .Accordingly, the AO disallowed the amount.

Citation :
A.C. I .T. , Circle-12(1), New Delhi (Appellant) V/s.M/s Get it Informediary Ltd. ,8-B, Bahadur Shah Zafar Marg, New Delhi [PAN:AABCG 7022 L] (Respondent)