Expenditure for setting-up of business allowable as deduction despite absence of business income

RBL Hotels Private Limited Vs ACIT (ITAT Chennai) Conclusion: Expenditure incurred would be allowable as deduction, notwithstanding the fact that no business income was earned by the assessee. Held: Assessee acquired a land and a partially constructed building for opening a hotel. Thereafter, assessee entered into a Hotel Operating Agreement with the Indian Hotels Company Ltd. Assessee claimed a set-off of the expenditure incurred by it as business expenditure for the relevant assessment year. AO held that assessee did not commence any business operations and that it did not earn any revenue f...