The Assessee is engaged in the business of manufacturing and sale of commercial vehicles in India, including design\/development for the Indian market and sourcing components; the crux was whether the absence of actual manufacture\/sale in the year (owing to incomplete plant construction) defeated its claim to deduct operating\/financial expenses as the business not being \u201cset up.\u201d The Assessee contended that it had already commenced multiple business activities aligned with its objects, so its business was \u201cset up,\u201d and expenses were allowable under Sec. 37(1) notwithstanding no manufacture\/sale that year.\u00a0 The Revenue disputed allowability of the expenses on the premise that, without manufacture\/sale during the year, the business was not set up and deductions could not be granted.\u00a0 The\u00a0 High Court held in favour of the Assessee that the commencement of various activities sufficed to treat the business as set up.\u00a0 SLP of revenue dismissed.\u00a0 (AY.2010-11)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 37(1) : Business expenditure-Set up-Commencement of business-Operating and financial expenses-Plant construction was incomplete-SLP of revenue dismissed.[Art. 136] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-59527","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fu7","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59527","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=59527"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59527\/revisions"}],"predecessor-version":[{"id":59528,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59527\/revisions\/59528"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=59527"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=59527"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=59527"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}