can any expenditure made before the commencement of business of capital nature be treated as preoperative expenses..??
5 Replies
ravikant pathak
(Article Assistant)
(27 Points)
Replied 20 September 2009
| Originally posted by :somya | ||
| " | can any expenditure made before the commencement of business of capital nature be treated as preoperative expenses..?? | " |
ravikant pathak
(Article Assistant)
(27 Points)
Replied 20 September 2009
| Originally posted by :somya | ||
| " | can any expenditure made before the commencement of business of capital nature be treated as preoperative expenses..?? | " |
if u can find the jusdgement of ITAT, den hon'ble members has in the case of fabrigem Jewellery Pvt. Ltd. has given finding that if the asssessee is a existing company and incurred expenses to expand its business further then that expenses will be treated at pre-operative expenses and allowed as revenue expenditure..... Thanks
ravikant pathak
(Article Assistant)
(27 Points)
Replied 20 September 2009
| Originally posted by :ravikant pathak | ||
| " |
You can find the judgements from ITATonline.org Thanks |
" |
CA.Tarun Maheshwari
(CA, DISA)
(7150 Points)
Replied 20 September 2009
Yes Somya, Any expenditure made for the purpose of relevant business before the starting of the business can be treated as Pre Operative Expenses. But the expenses must be in relation of the business.
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