Expenditure incurred by the assessee-company, incorporated for carrying out the business of the BPO, prior to the setting up of business, cannot be taken into account for computing the business income

ITO Vs Omni Globeinformation Technologies India (P) Ltd. (ITAT Delhi)- Business is set up when it reaches a stage where it is in a position to procure business and not before. However, the expenditure becomes deductible from such stage, irrespective of the date of actual receipt of the business. The assessee-company had been incorporated on 19 March 2004 for carrying out the business of the BPO. It incurred the expenditure of Rs 59,24,809 under various heads in the months of April and May, 2004. Although the staff had been recruited,

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