plz reply its urgent..

Others 867 views 5 replies

somya

172 Points Joined November 2007

can any expenditure made before the commencement of business of capital nature be treated as preoperative expenses..??

Replies (5)

ravikant pathak

Article Assistant

27 Points Joined December 2008

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 Joined December 2008

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 Joined December 2008

Originally posted by :ravikant pathak

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. & Beautiful Jewellerrs 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.....

You can find the judgements from ITATonline.org Thanks

CA.Tarun Maheshwari

CA DISA

7150 Points Joined March 2008

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.