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2013 (7) TMI 335 - HC - Income TaxSet Off u/s 37 - Capital expenditure versus revenue expenditure - date of Commencement of business - Held that:- in the case of CIT Vs. L.G. Electronic (India) Ltd. [2005 (5) TMI 30 - DELHI High Court], it has been observed that the date of setting up of business and date of commencement of business may be two separate dates. This decision in the case of L.G. Electronics (supra) has been followed in CIT Vs. ESPN Software India P. Ltd., [2008 (3) TMI 90 - DELHI HIGH COURT] wherein it has been held that a business will “commence” with the first purchase of stock-in-trade and the date on which the first sale is made is immaterial. Similarly, for manufacturing, several activities in order to bring or produce finished products have to be undertaken, but business commences when the first of such activities is taken. Assessing Officer and the first appellate authority did not specifically go into the factual matrix relating to and to ascertain the date of “setting up” of business, though order of the first appellate authority is more detailed and elaborate - Decided against Revenue with cost of ₹ 10,000/-
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