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2016 (11) TMI 970 - HC - Income TaxAllowance of expenditure - set up of business - Held that:- Although the obtaining of license is on a slightly higher plain, the fact remains that in this case, there is nothing on record to say that the Memorandum of Association of the assessee company prevented it from earning the income that it did. It is not merely the earning of the income, but also the nature of expenditure incurred which is determinative at least in the facts of this case. The company strove and did all that it could to set-up the infrastructure which ultimately culminated in obtaining the NBFC license. In the process, the expenditure incurred by it had a nexus with the license that it could successfully obtain on 09.04.2008. Having regard to all these facts, this Court is of the opinion that the application of law declared in Whirlpool (2009 (8) TMI 28 - DELHI HIGH COURT) and the decision in CIT v. L.G. Electronics (India) Ltd. [2005 (5) TMI 30 - DELHI High Court ] was unexceptionable. Loss claim - whether the loss could have been allowed at all having regard to the fact that it was claimed in the revised return and not in the original return? - Held that:- The revised return was filed within the time prescribed. In fact, the revised return was finally taken up for assessment.; the orders too were passed on it. In the circumstances, the very purpose of filing a revised return and making a provision thereof would be defeated if the Revenue’s primary contention that the claims should have been made in the original return were to be followed and upheld. No question of law arises in such circumstances. The appeal is accordingly dismissed.
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