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2021 (11) TMI 76 - ITAT DELHIAllowable business expenses - Expenses incurred for retaining the status of the company - assessee did not carry out any business activity during the assessment yea - HELD THAT:- Assessee was incorporated on 10.09.2087, made investments in V. Hotels Ltd, which had acquired Centaur Hotel in Mumbai from the Government intending to revive the business of such hotels, but in view of legal dispute with regarding to Centaur Hotel and also on account of economic slowdown, the assessee could not start running of hotel, but, however, to keep the status of the company, the assessee had to incur expenses in the shape of salary of few key personnel, payments made towards statutory funds, communications, professional fees etc. CIT(A) while following the decision of Hon’ble jurisdictional High Court in the case of Integrated Technology Ltd. [2011 (12) TMI 48 - DELHI HIGH COURT] and also order of Mokul Finance Pvt. Ltd [2007 (7) TMI 351 - ITAT DELHI-I] granted relief on the ground that the expenses incurred for retaining the status of the compare are allowable deduction, even though the assessee did not carry out any business activity during the assessment year. - Decided against revenue.
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