Preliminary Expenses

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Radhakrishnan (Querist)
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16 December 2009 Hi friends
Can any 1 tel me the treatment of preliminary expenditure, if a company incurres a continues loss for 5 consecutive years?

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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16 December 2009 Still you have to amortize the preliminary expenses.

To that extent; loss will be more.

Heera Nahariya

Heera Nahariya (Expert)
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16 December 2009 amortization is compliance with section 35D of Income Tax as a result loss increases and the same can be carried forward and set off.