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2023 (2) TMI 642 - AT - Income TaxCapital loss on sale of property - Additions u/s 50C - Business Expenditure - claim disallowed as no business activity was carried out during the year - Disallowance of expenses incurred by the assessee to keep its corporate entity -HELD THAT:- Case of the assessee for its claim of loss is that the business activity of the assessee has been temporarily suspended. The assessee incurred the expenses on account of wages and salary to staff and other financial expenses related to the business in order to keep the corporate entity intact which is a going concern. Was it a case of temporary lull in the business requires verification? On the issue of addition u/s 50C the Ld. DR agreed that due procedure prescribed for valuation of FMV has not been followed. Lot of emphasis has been laid on interpretation of the word “may” occurring in section 50C(2) of the Act ignoring that the word “may” also be interpreted as “shall” if the context so requires. We are, therefore of the considered view that a fresh look needs to be given to both the issues. We, therefore set aside the order of the Ld. CIT(A) and restore both the issues to the file of the Ld. AO to decide them afresh in accordance with law after allowing adequate opportunity of hearing to the assessee. Appeal of the assessee is treated as allowed for statistical purposes.
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