Expenses incurred during ‘no-income period’ to be considered allowable u/s 37(1) of ITA’61 or 34(1) of ITA’25; unabsorbed depreciation allowed also under Section 32(2) of ITA’61 or 33(11) of ITA’25

Expenses incurred during ‘no-income period’ to be considered allowable u/s 37(1) of ITA’61 or 34(1) of ITA’25; unabsorbed depreciation allowed also under Section 32(2) of ITA’61 or 33(11) of ITA’25 https://www.taxtmi.com/article/detailed?id=15344 Section 37(1) (ITA'61) and Section 34(1) (ITA'25) allow deduction for expenditure laid out wholly and exclusively for business purposes, while Section 32(2) (ITA'61) and Section 33(11) (ITA'25) permit carryforward of unabsorbed depreciation to succeeding years. Expenses incurred during a temporary no-income period are deductible when the business is not discontinued and the intention to continue exists; absence of a permanent establishment under a DTAA does not negate entitlement to such deductions. en-us Tue, 04 Nov 2025 08:05:02 +0530 Tue, 04 Nov 2025 08:05:02 +0530 TaxTMI RSS Generator Expenses incurred during ‘no-income period’ to be considered allowable u/s 37(1) of ITA’61 or 34(1) of ITA’25; unabsorbed depreciation allowed also under Section 32(2) of ITA’61 or 33(11) of ITA’25 https://www.taxtmi.com/article/detailed?id=15344 Section 37(1) (ITA'61) and Section 34(1) (ITA'25) allow deduction for expenditure laid out wholly and exclusively for business purposes, while Section 32(2) (ITA'61) and Section 33(11) (ITA'25) permit carryforward of unabsorbed depreciation to succeeding years. Expenses incurred during a temporary no-income period are deductible when the business is not discontinued and the intention to continue exists; absence of a permanent establishment under a DTAA does not negate entitlement to such deductions. Articles Income Tax Tue, 04 Nov 2025 08:05:02 +0530 https://www.taxtmi.com/article/detailed?id=15344