ITAT Rejects The Claim Of NDTV To Treat Expenditure As Pre- Operative In Nature For The Assessment Year 2009- 2010
Live LawThe Delhi Bench of the Income Tax Appellate Tribunal has held that the business of the NDTV Studios had not been set up during the assessment year 2009- 2010 and all the expenses claimed by the assessee were pre-operative in nature, which should have been capitalised. The two-member bench of Yogesh Kumar U.S. and N.K.Billaiya has observed that the expenses claimed by the assessee are not deductible as business expenditure and have been disallowed. The assessee submitted that the CIT had erred in holding that the business of the assessee was not set up during the previous year relevant to Assessment Year 2009-10 and it was not in operation to procure business and deliver its service. The business had not been set up during the previous year relevant to Assessment Year 2009-10.