TMI Blog2013 (8) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... e company is an asset management company, which is hundred per cent subsidiary of Axis Bank Limited. During the assessment proceeding, the AO noted that the assessee has shown only income under the head miscellaneous income of ₹ 24,720/- as the assessee has not carried out any business activity and not shown any business receipt. The AO noted that the assessee had shown business loss of ₹ 1,17,69,736/-. The AO has observed in his order that the assessee has not furnished any reply on the issue of setting up of business during the year under consideration and no evidence whatsoever had been submitted to prove that the assessee's business was set up during the year under consideration. The AO also observed that the assessee fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee company came into existence in the year 2006. Copy of certificate of incorporation is placed at page 3 of the paper book. Copy of certificate for commencement of business is also placed at page 5. This certificate was issued by the Assistant Registrar of Companies, Maharashtra, Mumbai, certifying that the company commenced its business w.e.f. 3-10-2006. Earlier the company was flouted name of Asset Management Company Limited, which was converted in the name of M/s Axis Private Equity Ltd. on 25-8-2007. Copy of the certificate issued by the Dy. Registrar of Companies is also placed at page 7. The copy of memorandum of association is placed at page 9 onwards by which it has been shown that the main objects of the company is managing di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity, then it has to be held that the business of the assessee has been set up and accordingly various expenses claimed in the profit and loss account were allowed. While holding so, the Tribunal has taken into consideration various cases decided by various High Courts and various Benches of the Tribunal. 7.3 I further noted that there is no dispute in respect to allowability of expenses as similar expenses were allowed by the AO while completing assessment for assessment year 2009-10 under Section 143(3). In view of the above facts and circumstances of the case, I allow this issue in favour of the assessee and direct the AO to allow the various expenses incurred by the assessee in its profit and loss account by treating the business of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
