Generation of income not necessary for claiming business expenditure

Zhilmil Electronics Pvt. Ltd. Vs ITO (ITAT Delhi)

ITAT Delhi held that once the expenditure is allowable as business expenditure u/s 30 to 38 of the Income Tax Act there is no requirement of generation of income for claiming business expenditure.

Facts-

During the assessment proceedings, it is found that the assessee company has issued 2,35,000 equity shares to four different entities for Rs. 94,00,000/- including share premium of Rs. 70,50,000/-. The assessee has a

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