PCIT Section 263 Quashed – Business Expenditure Allowable Even Without Income; AO Conducted Proper Enquiry

Rohan Landscape Private Limited Vs PCIT (ITAT Mumbai) ITAT Mumbai held that revision u/s 263 was invalid where AO had conducted detailed scrutiny & taken a plausible view. The assessee, engaged in warehousing development, had set-up its business though no rental income accrued during the year. Tribunal reiterated that allowability of expenditure does not depend on earning income; once business is set-up, revenue expenses & depreciation are allowable. PCIT invoked s.263 alleging lack of enquiry regarding finance expenses, other expenses, depreciation, share premium & capital credito...