Income Tax Assessment

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Ramesh Pradhan (Querist)
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23 November 2009 A commission based company in its first year claim expenses of Rs. 31,00,000/- without any business income.

My question is that will it be allowed by the income authorities as revenue expenses?

Please reply me on this issue.

Thanks

Aditya Maheshwari

Aditya Maheshwari (Expert)
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23 November 2009 It is very difficult to allow the same as the expenses seems to be not in connection with any business.

If u can prove they are in connection with some business generated next year then u ve a chance.

Other wise u should have capitalised the same under the head work in progress.

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