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2010 (5) TMI 649 - ITAT, AHMEDABADDisallowance of business expenditure - Held that:- Western India Vegetable Products Ltd. v. CIT [1954 (3) TMI 59 - BOMBAY HIGH COURT] wherein observed that when a business is established and is ready to commence business then it can be said of that business that it is set up. But before it is ready to commence business it is not set up. But there may be interregnum, there may be a interval between a business which is set up and a business which is commenced and all expenses incurred after the setup of the business and before commencement of the business all expenses during the interregnum would be permissible deduction under section 10(2) of the Income-tax Act - assessee in the present case entered into agreements of sale of the gases with other parties in the assessment year in question or before. Since the assessee has been able to satisfy that it started securing orders for sale of gases, therefore, the assessee had commenced its business accordingly - no infirmity in the order of the CIT(Appeals) in allowing deduction of the expenditure in this case, the Departmental appeal stands dismissed.
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