Expenses incurred after setting up of business is allowable as deduction

E-Land Systems Pvt. Ltd. Vs ITO (ITAT Bangalore)

There is no dispute with regard to the fact that there could be a time gap between “setting up of business” and actual “commencement of business”. It is also settled principle that the expenses incurred after setting up of business is allowable as deduction. We may gainfully take support from the following observations made by Hon’ble Bombay High Court in the case of Western India Vegetable Products Ltd vs. CIT (1954)(26 ITR 151)(Bom):-

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