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Issues involved: Determination of continuation of business for the relevant assessment year based on findings of CIT(A) and ITAT.
The judgment of the Delhi High Court in this case revolves around the findings of the CIT(A) and ITAT regarding the continuation of the business of the assessee for the relevant assessment year. The CIT(A) noted that despite not receiving orders, there were sufficient reasons to conclude that the business operations were ongoing. The ITAT upheld the CIT(A)'s findings, which were based on a thorough consideration of the facts and previous assessment years. The Assessing Officer had initially concluded that no business was conducted by the assessee for the assessment year in question, based on information from preceding and succeeding assessment years. However, the Tribunal referenced its own order for the earlier assessment year of 2002-2003 to clarify the situation. The decision of the authorities was not solely reliant on the reasoning from the previous assessment year, as indicated in the orders of the CIT(A) and ITAT. The CIT(A) highlighted various aspects supporting the continuation of the business, such as expenses incurred, absence of plant and machinery sales or establishment closures, and the initiation of new business activities. The interconnection between the turbo charger business and the new venture of manufacturing coins and coins blanks was emphasized, demonstrating the ongoing nature of the business operations. The Revenue could not challenge the facts presented by the CIT(A) before the Tribunal, leading to the dismissal of the appeal by the High Court.
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