Non-generation of income after setting up of business cannot be ground to disallow expense

DCIT-13(1)(2) Vs Qyuki Digital Media Pvt. Ltd. (ITAT Mumbai) ITAT Mumbai held that disallowance of entire expenses alleging that assessee has not started its business activity till date not justified since non-generation of income after setting up of business cannot be a ground to disallow expenses. Accordingly, disallowance of expenses deleted. Facts- The assessee- company is engaged in the business of production and development of internet programmes, products, services, applications etc. During the course of assessment proceedings, AO noticed that the assessee has issued shares to four pers...