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2024 (1) TMI 148 - AT - Income TaxAddition on account of share application money u/s. 68 - addition made as assessee did not furnish bank statement of the share applicant - CIT(A) deleted addition - HELD THAT:- We have gone through the assessment order passed in the case of share applicant, perusal of the same reveals that AO has accepted the submissions and claims made by him in his return. We also take note of the fact that the share applicant has made investments, both in the preceding as well as succeeding years, details of which has already been tabulated above. Thus, it is not a sole transaction with the assessee in this year only. We do find force in the submission made by the Ld. Counsel and have no reason to interfere with the findings given by the Ld. CIT(A) in deleting the addition - While holding so, we draw force from the decision of Satkar Infrastructure Pvt. Ltd. [2022 (10) TMI 460 - DELHI HIGH COURT] Accordingly, ground no. 1, taken by the revenue in this respect is dismissed. Disallowance of expenditure owing to suspension of business operations by the assessee since year 2009 - CIT(A) deleted addition as on rule of consistency - HELD THAT:- As it is an undisputed fact that airline operations of the assessee are in suspended mode since the year 2009. However, there is no closure of the assessee by way of its liquidation since it is a corporate set up under the Companies Act. We find force in the submissions made by the Ld. Counsel that assessee being a company set up has to incur expenses irrespective of active business. We find that the sole basis of disallowance of expenses by the Ld. AO is in the backdrop that assessee did not carry out any business activity during the year. To our mind, not carrying on any business activities during a particular period cannot be equated with closure of business since it will lead to a narrow view of the scope of cessation of business. There is nothing on record to show that assessee has completely abandoned or closed the business forever by disposing of its assets and going into liquidation. On the contrary, from the perusal of its audited financial statement, it is revealed that assessee had been meeting various statutory and regulatory expenses. We also take note of the fact that such expenses have been allowed both in the preceding and succeeding assessment years, details of which is already tabulated above. From the perusal of the finding of CIT(A), we note that relief has been granted by following the principle of consistency. A specific query was posed to the Ld. Counsel whether rule of consistency should be followed as such to which he submitted that “department should be consistent to themselves”. No reason to interfere with the well reasoned findings given by the Ld. CIT(A) Appeal of revenue dismissed.
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