Tribunal held that there being difference between commencement of business and setting off of business, all expenses incurred pre-commencement are to be treated as pre-operative expenses and expenses incurred which do not form part of work-in-progress like office expenses, salaries, advertising, travelling expenses which are incurred for running of business operations are to be treated as revenue expenditure. (AY. 2013-14)
Logix Buildtech (P.) Ltd. v. ACIT (2022) 192 ITD 35 (Delhi) (Trib.)
S. 37(1) : Business expenditure-Pre-Operative expenses-Real estate business-Do not form part of work in progress-Office expenses, salaries, advertising, travelling expenses which are incurred for running of business operations are to be treated as revenue expenditure and allowed as deduction.