Revenue expenses after setting up of business allowable despite non-commencement of business

Brief of the case:

ITAT Mumbai held in Reliance gems & Jewels ltd Vs DCIT that the revenue expenditure would be allowed as an expense after the setting up of the business before the commencement of the business. The expense incurred on recruitment of employees gave indication that the business had been set up so the expenses incurred after setting up of the business related with the employees and other expense would be allowed as a revenue expense u/s 37(1).

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