Preliminary steps for fulfillment of purpose of business| set up of business | Section 35D

Indian Railway Stations Development Corporation Ltd. Vs Pr. CIT (Delhi High Court) Conclusion: Where in service sector, the entity has involved itself in various kinds of steps, some of which are preliminary to setting up the main substantial commercial venture such as appointment of key personnel, preparation of draft model development agreement and initiation of process to tender financial and advisory services, then, claim for deduction of depreciation, preliminary expenses and employee’s remuneration was to be allowed. Held: Assessee-company declared loss to the tune of ₹44,70,035/-. ...