PHILIP MULAKKAL,THRISSUR vs. ACIT, CIRCLE 2(1), THRISSUR

ITA 841/COCH/2025Status: DisposedITAT Cochin18 August 2026AY 2013-143 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the liability for the foreign trip had crystallised and accrued in FY 2012-13 as the sales giving rise to the incentive were booked in that year. Therefore, the expenditure was allowable under Section 37(1).

What were the facts?

The assessee claimed a deduction for sales promotion expenditure in the form of a foreign trip for dealers based on sales made in FY 2012-13. The Assessing Officer disallowed this as the expenditure was incurred in FY 2013-14 and the liability was considered contingent.

What were the issues?

Whether a provision for sales promotion expenditure in the form of a foreign trip is allowable as a crystallized liability when the related sales have been booked in the same financial year.

Which sections of the Income-tax Act were involved?

Section 37(1),Section 41(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN

Before: SHRI PRASHANT MAHARISHI, VICE – & SHRI KESHAV DUBEY

For Respondent: Ms. Neethu S, Snr DR

Heard together (2 matters)

S.A. No. 97/Coch/2025
ITA No. 841/Coch/2025

Read from the judgment's own cause title. This page is filed under one of them.

PER PRASHANT MAHARISHI, VICE – PRESIDENT

1.

The assessee has filed this stay petition in ITA No. 841/Coch/2025 for assessment year 2013–14, seeking a stay of demand of ₹ 1,591,190 arising from the assessment order dated 26 February 2016 passed by the Assistant Commissioner of Income Tax, Circle–2(1), Thrissur, under section 143(3) of the Income-tax Act, 1961 (“the Act”). The said order determined the assessee’s total income at ₹ 22,606,600. The appeal against that order was partly allowed by the Commissioner of Income Tax (Appeals), Agra, by order dated 14 August 2025. The principal ground for seeking stay is that

The order continues below.

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