Revenue expenses after setting up of business allowable despite non-commencement of business

Brief of the case: ITAT Mumbai held in Reliance gems & Jewels ltd Vs DCIT that the revenue expenditure would be allowed as an expense after the setting up of the business before the commencement of the business. The expense incurred on recruitment of employees gave indication that the business had been set up so the expenses incurred after setting up of the business related with the employees and other expense would be allowed as a revenue expense u/s 37(1). Facts of the case: The assesse had filed its return declaring loss of Rs 87,26,445/-. The case was selected for scrutiny and the AO c...