https://www.taxtmi.com/caselaws?id=277219 Expenditure incurred before a new business has commenced is treated as preliminary expense and is not deductible in computing business income. Managing agency commission charged as a single liability on the net annual profits of an integrated business, and paid in Bombay, cannot be split and allocated to Karachi profits merely because part of those profits is exempt under the Indo-Pakistan relief arrangement. The deduction was therefore confined to the liability as incurred, without apportionment against exempt profits. en-us Wed, 04 Mar 1953 00:00:00 +0530 Thu, 29 Nov 2018 12:44:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277219 Expenditure incurred before a new business has commenced is treated as preliminary expense and is not deductible in computing business income. Managing agency commission charged as a single liability on the net annual profits of an integrated business, and paid in Bombay, cannot be split and allocated to Karachi profits merely because part of those profits is exempt under the Indo-Pakistan relief arrangement. The deduction was therefore confined to the liability as incurred, without apportionment against exempt profits. Case-Laws Income Tax Wed, 04 Mar 1953 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277219