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2016 (4) TMI 503 - AT - Income TaxDisallowance of office expenses - commencement or non commencement of business - Held that:- CIT(A) while deleting the disallowance so made by the AO has considered all the documents placed by the assessee. On verification of the details so placed by the assessee, the CIT(A) found that the assessee had sent an introductory letters to various clients urging for the business and calling for their requirements of the product. The date of letter was August, 21, 2007, which can be taken as date of commencement of the business. The CIT(A) further held that all the earlier activities of the assessee before August, 21, 2007 were regulatory activities and first activity of the business actually started on August, 21,2007 in the A.Y.2008-09. From the above findings of the CIT(A) we found that the business of the assessee was already set up and commenced in assessment year 2008-09, therefore, no disallowance of expenditure upto 8th August, 2008 is warranted. - Decided in favour of assessee Set off and carry forward the business loss - Held that:- We found from the findings of the CIT(A) that the assessee had already commenced its business activities from A.Y. 2008-09, therefore, the assessee should be allowed carry forward of the expenditure from the assessment year under consideration - Decided in favour of assessee
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