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2019 (2) TMI 1818 - AT - Income TaxAllowability of expenses - Whether assessee has not carried out any business activity during the impugned AY? - HELD THAT:- So long as the assessee’s business is in existence, actual business receipts in not a sine qua non to claim the business expenditure. The assessee was a corporate entity and its business could come to an end only upon its being wound up as per due process of law. The corporate entity has to incur expenditure so as to maintain its corporate personality and day-to-day existence. Other notable feature is the fact that the assessee has claimed depreciation which demonstrate that its fixed assets were in existence and were not sold-off during impugned AY. The perusal of other expenses as placed on record reveal that the same are in the nature of electricity, water charges, rent, duties & taxes, travelling, telephone expenses, legal expenses & other routine expenditure. So far as the treatment of misc. income and insurance premium refund is concerned, the complete details of the same was already filed by the assessee before AO and the same were found to be arising out of liquidation of old stock and refund of excess premium paid by the assessee and therefore, the same were clearly business income in nature. The revenue is unable to rebut the factual matrix as well as case laws being relied upon by first appellate authority. This being the case, no infirmity or perversity could be found in the impugned order.
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