https://www.taxtmi.com/caselaws?id=56273 The Tribunal upheld the decision to disallow certain expenditure claimed by the assessee for income from business. The disallowed expenses included preliminary expenses as the company had not commenced its main business activities at the time the loan was provided. Despite the company's objective of money lending, it needed to be directly linked to the main business activities outlined in the objects clause. Previous court decisions were analyzed, emphasizing that business commencement must align with the main objects specified in the company's memorandum. The appeal was rejected, confirming the disallowance of preliminary expenses as a deduction. en-us Tue, 25 Aug 1981 00:00:00 +0530 Thu, 02 Dec 2010 17:33:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56273 The Tribunal upheld the decision to disallow certain expenditure claimed by the assessee for income from business. The disallowed expenses included preliminary expenses as the company had not commenced its main business activities at the time the loan was provided. Despite the company's objective of money lending, it needed to be directly linked to the main business activities outlined in the objects clause. Previous court decisions were analyzed, emphasizing that business commencement must align with the main objects specified in the company's memorandum. The appeal was rejected, confirming the disallowance of preliminary expenses as a deduction. Case-Laws Income Tax Tue, 25 Aug 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56273