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2019 (11) TMI 984 - ITAT PUNEDisallowance of various expenses debited to the Profit and Loss account - assessee has not carried out any business activity during the year - HELD THAT:- The copy of the Partnership Deed which is placed by the assessee in the Paper Book reveals that one of the activity of the firm is financing as spelt out in the Partnership Deed. We further find that the conclusion of the AO of assessee not having carried out any business activity is also contrary to the facts in view of the fact that in computation of income in the assessment order. AO himself has computed the income of ₹ 19,09,431/- as “business income”. The aggregate capital balance of the partners also reveals that the partners capital account in aggregate is in credit and only the capital of one of the partners is in debit. We are of the view that AO was not justified in disallowing the expenses by noting that no business activity has been carried out by the assessee. We therefore the AO direct to delete the addition made by him. Thus, the grounds of the assessee are allowed.
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