https://www.taxtmi.com/caselaws?id=188618 The Tribunal disallowed the deduction of pre-operative expenses amounting to Rs. 2,65,34,000 claimed by a company transitioning from finance to hotel business. It held that the hotel business was separate and lacked inter-connection with the finance business, thus expenses for setting up the hotel were not deductible against finance business income. The Tribunal emphasized the importance of unity of control and inter-dependence between businesses for expenses to be deductible, ultimately ruling in favor of the Revenue and disallowing the deduction of pre-operative expenses. en-us Fri, 04 Aug 2006 00:00:00 +0530 Fri, 09 Dec 2016 10:26:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=188618 The Tribunal disallowed the deduction of pre-operative expenses amounting to Rs. 2,65,34,000 claimed by a company transitioning from finance to hotel business. It held that the hotel business was separate and lacked inter-connection with the finance business, thus expenses for setting up the hotel were not deductible against finance business income. The Tribunal emphasized the importance of unity of control and inter-dependence between businesses for expenses to be deductible, ultimately ruling in favor of the Revenue and disallowing the deduction of pre-operative expenses. Case-Laws Income Tax Fri, 04 Aug 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=188618