The Tribunal held that   the assessee had during the period May, 2009 to July, 2009 incurred expenses, inter alia, towards salaries of the employees, nominal electricity expenses, internet expenses, office expenses, office rent, staff welfare expenses, and technical consultancy fees. As the assessee which was engaged in the business of providing software development services exclusively to its parent company, belonged to the service industry, the incurring of expenditure on payment of rent, salary expenses, electricity expenses, revealed that its business during the period under consideration was set up but had yet not commenced. All expenses incurred by an assessee during the interregnum period between setting up of its business and commencement of the business, are permissible as a deduction.  (AY.2010-11)