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2015 (7) TMI 1202 - AT - Income TaxBusiness expenses claimed in the absence of likelihood of any business income - Held that:- The assessment orders for the Assessment Year A.Y. 2008-09 as well as for the A.Y. 2010-11 was passed u/s 143(3) of the Income Tax Act, 1961 (the Act) and the income in question was assessed under the head “income from business”. Thus for the immediate preceding year and the subsequent year the AO accepts the assessee’s stand that business has commenced. The purpose for which the assessee company was set up, is to develop power and other infrastructure projects, either directly or indirectly, through special purpose vehicles (SVPs) by participating in the equity share holding and management of the project companies. The First Appellate Authority has on the ground of consistency allowed the claim of the assessee. We find no infirmity in this order of the Ld.CIT(A). Hence we uphold the same and dismiss this ground of Revenue. Addition u/s 14A - Held that:- The assessee has shown turnover from execution of contracts. In our view this is not material as the investment in this case is made in the form of SPVs to undertake contracts and thus trade investment. Applying the propositions laid down in this case law to the facts of the case, we hold that no disallowance can be made u/s 14A of the Act.
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