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2015 (9) TMI 1448 - AT - Income TaxDisallowance of expenses - no business activities carried out during the year under reference - assessee is engaged in the business of lotteries - Held that:- As find from the record that the assessee is engaged in the business of lotteries and the business has never been closed or discontinued, as stated by the assessee. The firm is still in existence and maintaining regular establishment and infrastructure. The lottery business is being carried out on in terms of agreement with Nagaland and Meghalaya Authorities. However, the business was discontinued by these authorities on the technical reasons and dispute which is still pending in arbitration. Find that the assessee has a regular establishment and incurred various expenses as a part of running business clearly establish that business has neither being closed or discontinued by the assessee. It is an established legal position that merely on the ground that there is no business receipt during the year, there cannot be any presumption about closure of the business. Neither the AO nor the Ld. CIT(A) has appreciated the facts and evidence filed by the Assessee before needs to be considered by the AO. In the interest of justice, we remit back the issues in dispute to the file of the AO with the directions to consider the written submission filed by the assessee before the Ld. CIT(A) and decide the case afresh, under the law, after giving adequate opportunity of being heard to the assessee. Assessee is also directed to cooperate with the AO and filed all the evidences / documents to the AO to substantiate its case. - Decided in favour of assessee for statistical purposes.
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