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2023 (6) TMI 732 - AT - Income TaxDenial of claim of loss or to categorize certain expenses as pre-operative expenses - commencement of business during the year - assessee’s business was ‘set up’ or not - HELD THAT:- The brokerage and commission expenses were paid to property consultants for taking apartment on lease for the director or recruitment of employees. Business promotion expenses were towards vendor selection and development. While the vehicle running expenses are in the nature of fuel and maintenance of the vehicles own by the appellant company and use for the business purpose. The research and development expenses were towards samples of products/ accessories for testing purpose before placing a purchase order and all this are intricate to the nature of business activity of the assessee. Thus, the bench is of considered opinion that Tax Authorities below fallen in error in concluding that assessee’s business was not ‘set up’ during previous year, to deny the claim of loss or to categorize certain expenses as pre-operative expenses. The appeal of assessee is allowed.
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