Dismissing the appeal of the revenue the Court held that, business of assessee was set up and assessee was ready to commence its business once it was approved by SEBI to act as an asset management company in accordance with sub-regulation (2) of Regulation 21 of the 1996 Regulations which approval was granted by SEBI in favour of assessee on 17-10-2012 .Accordingly the assessee is entitled to deduction of admissible business expenses incurred by it on or after 17-10-2012 when business could be said to have been set up by assessee. (AY. 2013-14)
DCIT v. PPFAS Asset Management (P.) Ltd. (2019) 176 ITD 541 (Mum.)(Trib.)
S. 37(1) : Business expenditure-Asset management company– Date of approval given by SEBI was to be regarded as date on which assessee set up its business and was ready to commence said business- Expenses incurred for purpose of business after said date of approval were eligible for deduction. [S. 3, Regulation 21 of the SEBI (Mutual Fund) Regulations, 1996]