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2015 (4) TMI 983 - DELHI HIGH COURTDisallowance of businesses expenditure - ITAT allowed the claim - commencement of business - whether assessee has not commenced business operations during the previous year (the assessment year being 2007-08)? Held that:- As decided in Western India Vegetables Products Ltd. v. CIT [1954 (3) TMI 59 - BOMBAY HIGH COURT] the important question that has got to be considered is from which date are the expenses of this business to be considered permissible deductions and for that purpose the section that we have got to look to is section 2(11) and that section defines the “previous year‟ and for the purpose of a business the previous year begins from the date of setting up of the business. Therefore, it is only after the business is set up that the previous year of that business commences and in that previous year the expenses incurred in the business can be claimed as permissible deductions. Any expenses incurred prior to setting up a business would obviously not be permissible deductions because those expenses would be incurred at a point of time when the previous years of the business would not have commenced. Thus the decision of the ITAT does not call for any interference - decided against revenue.
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