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2013 (11) TMI 310 - AT - Income TaxDenial of set-off of losses with income u/s 71 - intra head adjustments - Change in the name of company - AO observed from the Director’s annual report that there is not merely a change in the name but a total change in line of business and denied the set-off u/s 71 – Allowance of administrative expenses out of the Interest income - Held that:- When there is only a change in the name of the company and all other things including the management of the company remains unchanged, then it cannot be said that the assessee has not commenced its business activities and in that event benefit under sec. 71 of the act cannot be denied to the assessee. Only because the assessee has not reported any income from business in the assessment year under dispute, it cannot automatically lead to the conclusion that it has stopped its earlier business activities. Further, on perusal of the assessment order passed for the assessment year 2009-2010, it appears that the Assessing Officer has allowed set off of administrative and other expenses against interest income while completing assessment under section 143(3) of the Act. Therefore, in the aforesaid view of the matter, the expenditure claimed cannot be disallowed and has to be set off against the interest income earned during the assessment year under dispute – Decided in favor of Assessee.
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