Treatment of brokerage expenditure under the Income Tax Act, 1961

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Last updated: 24 July 2021
Quick Summary
This Income Tax Appellate Tribunal case concerns the treatment of deferred brokerage expenditure for an asset management company. The Revenue argued that the expenditure should not be claimed in full in the first year, as the corresponding income is recognised over multiple years. However, the assessee contended that the expenditure was incurred in the current year and should be treated as deferred revenue expenditure, claimed over the period of the underlying schemes' maturity. The Tribunal considered the assessee's accounting practices and relevant case law.

Court :
ITAT Mumbai

Brief :
This appeal by the Revenue is directed against the order of learned CIT(A)-12 dated 23.04.2019 and pertains to Assessment Year 2013-14.

Citation :
I.T.A. No. 5379/Mum/2019

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1 Year PLAN
1999
(Excl. of GST ₹359)

2 Years PLAN
3499
(Excl. of GST ₹629)

BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)

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