Case Law Details
DCIT Vs PPFAS Asset Management Pvt. Ltd. (ITAT Mumbai)
As SEBI approval mandatory is to commence business, assessee admissible to claim business expenses only after obtaining the necessary approval. Since commencement of business require SEBI approval, expenses claimed post approval would qualify as business expense.
Facts –
The assessee was incorporated on 08.08.2011 as a Private Limited Company. Assessee was required to obtain SEBI approval for undertaking its business. SEBI approval was granted on 17.10.2012.
AO contended that the expenses claimed by the assessee cannot be allowed as business/revenue expenses on the grounds that the assessee had no business activity as it has not obtained necessary approvals to initiate business activities.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
