Start-up company incurring cost for branding prior to product launch is allowable expenditure

Qyuki Digital Media Private Limited Vs DCIT (ITAT Mumbai) ITAT Mumbai held that a start-up company incurring cost for branding of the company and other relevant expenditure which creates popularity which helps promotion of contents at the time of its product launch is allowable expenditure. Facts- The assessee filed ROI declaring loss of Rs. 13,04,62,517/-. The case was subject to scrutiny assessment and notice u/s 143(2) of the Act was issued. During the course of assessment, AO observed that assessee has not carried out its regular business activities during the F.Y. 2012-13 and no income ha...