The Tribunal upheld the disallowance of the operating expenses, financial expenses and depreciation claimed by the assessee on the ground that the commercial operation of manufacture and sale of commercial vehicles had not commenced so far and therefore, the business of the assessee had not been set up. The High Court reversed the Tribunal holding that merely because manufacture and sale of vehicles had not taken place, the business of the assessee could not be held not to have been set up, and that the assessee on showing that it had commenced several of the activities for which it was incorporated would qualify for deduction of the expenditure incurred by it under the head operating expenses, financial expenses and depreciation. SLP of revenue dismissed.  (AY. 2010-11)