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2012 (4) TMI 150 - HC - Income TaxCommencement of Business - Revenue is in appeal against the judgment of the Tribunal – AO disallowed the entire expenditure incurred by the assessee during the year as the business of the assessee had not yet commenced –Assessee contented that the assessee has submitted the return for AY 1998-99 wherein the basic pattern of investments and operations were the same as in AY 2001-02 and the set up of the business has been accepted during the AY 1998-99, the AO thus cannot again go back and say that the business has not been set up during the year - Tribunal, by the impugned order, allowed the appeal – Tax case Appeal by the Revenue – Held that:- if the assessee does first activity towards the attaining its main object, business shall be deemed to have been set up - the company entered into collaboration with to set up a joint venture company in which the respondent company had 26% equity share depicts that it is attaining its main objective as mentioned in MOA OF Company - AO is directed to treat all the expenses to be the revenue expenditure and allow set off of loss in accordance with law.Tax Case Appeal of revenue rejected.
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