Allowing the appeal of the assessee the Tribunal held that, preoperative expenses such as salaries and wages, PF and ESI contribution, travelling expenses, and like other general administrative expenses etc is held to be allowable as the assessee has commenced the business and the expenses are for expansion of existing business. (AY. 2013-14)
Olive Bar & Kitchen (P.) Ltd. v. DCIT (2019) 175 ITD 72 (Mum.) (Trib.)
S. 37(1) : Business expenditure–Business commenced-Expansion of existing business-Preoperative expenses such as salaries and wages, PF and ESI contribution, travelling expenses, and like other general administrative expenses etc is held to be allowable. [S. 35D(1)(ii)]