Business expenditure

The assessee shall be entitled to admissible business expenses from the day when the business was ready to commence and not from the date of actual commencement of the business, as held by DelTrib in GNG Stock Holdings (P) Ltd v DCIT — In favour of: The assessee (partly).

All the expenses incurred during the interval of setting up the business and the commencement of the business is allowable as a deduction under s 37.

The mere registration of the assessee-company under the Companies Act cannot be said to be the first stage relating to the activity of acting as trading members and clearing members of the wholesale debt market, capital market and futures and options segments of any stock exchange.

Decided on: 22 July 2011.