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 expendi

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