A company is incorporated say in April 2008 and obtains license from RBI to operate as an NBFC in September 2008. The company incurs expenses towards setting up its operations during the period April to September 2008.
a) Can the company claim the expenses as normal business expenses as it is already in existence in April 2008 eventhough the license to operate as NBFC has been obtained only in Sept
b) or should the expenses be treated as capital expenditure which would be disallowed for income tax purpose
c) should the expenses be treated as pre-operative (eventhough in existence since April 2008) as the Company has been created for operating as an NBFC and the same cannot happen without the RBI license being granted
how should the treatment be?