Need urgent help

Bharat chandan (student) (158 Points)

18 March 2013  
I jst got a query related to section 35D a company made an expense as audit fees as it is mendatory. but company has not yet started its operation. and there is no income. my question is whether it will be covered u/s 35D and 1/5 th deduction will be allowed or it will be covered u/s 37 and full deduction is allowed? or any other option????? thanx in advance