Inactivity for a limited period does not mean that business ceased to exist. Accordingly, expenditure is allowable even though no business income is earned during such period

Recently ITAT Mumbai in the case of Bechtel International Inc., USA Vs. ADIT held that mere inactivity for a limited period does not mean that the taxpayer’s business ceased to exist or that it did not carry on any business at all. Expenditure incurred during the said period of inactivity / lull is allowable even t

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