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2015 (10) TMI 1873 - AT - Income TaxAllowance of pre-operative expenses against the income from other sources - setting up off business losses against the income under the head 'income from other sources' - Held that:- The Assessing Officer had not determined the business losses by holding that the respondent assessee company had not commenced his business operations and he doubted the trading activities carried on by the assessee company on the ground that the trading activity allegedly had been carried as a sham since the sales were made prior to the purchase of beer. From the order of learned CIT(A), it is clear that though he accepted in principle that the respondent assessee company commenced the business operations and allowed the set off the loss so incurred against the income from other sources but he failed to examine the relevancy of the expenditure claimed on the trading account. Therefore, we restore the matter to the file of the Assessing Officer with the direction that if the expenditure claimed is directly relatable to the trading activity, the same may be allowed as a business loss which can be set off against the income from other sources. With these directions, the appeal filed by the Revenue is partly allowed for statistical purposes.
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