2017 (7) TMI 923 - SCH - Income Tax

Allowance of expenditure - set up of business - HC order 2016 (11) TMI 970 - DELHI HIGH COURT stating it is not merely the earning of the income but also the nature of expenditure incurred which is determinative at least in the facts of this case. The company strove and did all that it could to set-up the infrastructure which ultimately culminated in obtaining the NBFC license. In the process the expenditure incurred by it had a nexus with the license that it could successfully obtain on 09.04.2008. Having regard to all these facts this Court is of the opinion that the application of law declared in Whirlpool (2009 (8) TMI 28 - DELHI HIGH COURT) and the decision in CIT v. L.G. Electronics (India) Ltd. 2005 (5) TMI 30 - DELHI High Court was unexceptionable. The Special Leave Petition is dismissed leaving the question of law open.

Summary

The Supreme Court dismissed the Special Leave Petition, condoning the delay and leaving the question of law open. (Citation: 2017 (7) TMI 923 - SC Order)