Non-generation of income after setting up of business cannot be ground to disallow expense

DCIT-13(1)(2) Vs Qyuki Digital Media Pvt. Ltd. (ITAT Mumbai)

ITAT Mumbai held that disallowance of entire expenses alleging that assessee has not started its business activity till date not justified since non-generation of income after setting up of business cannot be a ground to disallow expenses. Accordingly, disallowance of expenses deleted.

Facts- The assessee- company is engaged in the business of production and development of internet programmes, products, services, applications etc. During the course of assessment proceedings, AO noticed that the ass

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