Business deems to be commenced once activity essential to carrying on business is started

Logix Infra Developers (P) Ltd Vs ACIT (ITAT Delhi)

The assessee has already started business operations, construction is in progress and an amount of approximately Rs.390 crores has already been capitalized. Hence, it cannot be said that the assessee has not commenced business operations. The expenses being advertising, brokerage and commission for booking of the flats which are in the nature of revenue expenses cannot be treated as capital expenditure. Reliance is being placed on the judgment of Hon’ble

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