Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2005 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2005 (5) TMI 30 - HC - Income TaxDefinition of the expression "previous year" - date of setting up a business - The only issue that has been raised is with regard to deduction for expenses claimed by the assessee which was disallowed by the Assessing Officer on the ground that the assessee had not commenced its business during the assessment year. The claim of the assessee pertains to expenses incurred on travelling and conveyance, rent, telephone expenses, brokerage, maintenance and sales promotion - Assessing Officer was of the view that the business of the assessee would commence with the first purchase of stock-in-trade and since no trading activities had taken place, the assessee could not request for capitalization of the expenses incurred - The definition of the expression "previous year" is quite clear and does not admit of any meaning which could be said to be in favour of the Revenue. A bare perusal of the section shows that there is hardly any question of law that arises in this case, much less any substantial question of law relating to interpretation. There is no doubt that the date of setting up a business and the date of its commencement could be two separate dates. Section 3(1) has reference to the date of setting up the business, the Commissioner of Income-tax (Appeals) and the Tribunal merely relied on the explicit language of the section to come to the conclusion that the view of the Assessing Officer was incorrect. This being the clear position, we do not find any infirmity in the impugned order nor does it raise any substantial question of law
|