Expenses cannot be disallowed merely for non-earning of revenue in relevant year

DCIT Vs HMS Real Estate Pvt. Ltd. (ITAT Delhi)

It is held that when an assessee whose business  is to develop real estates, is in a position to perform certain acts towards the acquisition of land, that would clearly show that it is ready to commence business and, as a corollary, that it has already been set up. It is well settled  principle that all the expenses incurred after the business had been set up are allowable as business deduction under section 37 of the Act. Further, it is not necessary that any income has to be earned to

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