Where the assessee has shut its operations and business and still incurs certain expenses on business closure, compliance and other expenses aftermath, will it be allowed as deduction under section 37?
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Quick Summary
This discussion explores whether expenses incurred after a business has ceased operations are deductible under Section 37 of the Income Tax Act. The consensus suggests that if these expenses are wholly for the purpose of the business, even during closure, they can be claimed as deductions. Furthermore, any resulting losses can be carried forward to offset future profits from a new business venture.