Shapoorji Pallonji Energy (Gujarat) (P) Ltd. v. DCIT (2025) 214 ITD 297 (Mum) (Trib.)

S.37(1): Business expenditure-Setting up of business-Power Purchase Agreement-Expenditure incurred for the purpose of business after setting up of business was allowable for deduction.

 

Held that assessee-company had entered into a Power Purchase Agreement, acquired several plots of land, obtained permission/clearance from relevant authorities, acquired equipment and other assets, etc., it could be said that the business of assessee of setting up a Thermal Power Project was already set up. Accordingly, the expenditure incurred for the purpose of business after setting up the business was allowable for deduction. (AY. 2017-18)

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