Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 504 - AT - Income TaxDisallowance of expenses – there was no permanent closure of the business - Held that:- Similar disallowance on the ground of no business activity had been made by AO in assessment year 2004-05 of the expenses claimed - the expenditure was not capital in nature and since there was no permanent closure of the business and business was under rehabilitation scheme/ revival scheme due to financial difficulties, the expenses had to be allowed - the assessee was doing its best to restart the production activity as was clear from the renewal of factory license - even if the assessee was not able to restart the business there will be no use of any such loss carried forward – thus, the claim of the assessee allowed – the order of the CIT(A) set aside – Decided in favour of Assessee. Addition on account of loans u/s 68 of the Act – Held that:- The assessment order has been passed by AO ex-parte - The assessee was a sick company and was under rehabilitation scheme by BIFR – thus, in such a situation the difficulty faced by the assessee in filing the confirmation and other evidence before AO has to be appreciated and these additional evidences were required to be considered by CIT(A) as the same were useful in deciding the issue - the additional evidences admitted in the form of loan confirmations as done by the Tribunal in assessment year 2004-05 – the order of the CIT(A) set aside and the matter remitted back to the AO for fresh adjudication – Decided in favour of Assessee. Income received from scrap treated as income from other sources – Held that:- The assessee has claimed that the income had arisen from sale of scrap – the nature of receipt has not been examined by the authorities properly – thus, the matter is remitted back to the AO for fresh adjudication – Decided partly in favour of Assessee.
|