Held that there is vital difference between setting up of business and commencement of business. Once the business is set up, the expenditure incurred thereafter could not be held to be pre-operative expenses and if they are revenue in nature, they would be allowable to the assessee. The undisputed fact was that though the assessee had capitalised the expenditure in the books of account, it had claimed the deduction thereof in the computation of income. The Assessing Officer had accepted that the expenditure was revenue in nature. The assessee had not claimed depreciation against the expenditure. The claim under section 35D was for specific expenditure only. Therefore, the expenditure would be fully allowable to the assessee subject to verification by the Assessing Officer that the assessee had not claimed any depreciation thereon and this expenditure had not been claimed in any of the other years. That the expenditure was routine business expenditure and arising in the ordinary course of business. Though the assessee may have wrongly claimed it as bad debts, it was allowable under section 37(1) .  That the issue of foreign exchange loss for both years was remanded to the Assessing Officer for decision in accordance with the order of the Tribunal in the assessee’s own case for the assessment year 2011-12.(AY.2009-10, 2012-13)