Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (5) TMI 210 - ITAT MUMBAIDisallowance of business expenditure - Cessation of business by the assessee - Held that:- As submitted by the assessee that assessee has shown substantial income in assessment year 2007-08 and 2008-09. Also there was a temporary lull in the business activity. However he has claimed that subsequently the business has picked up and in financial year 2015-16 and financial year 2016-17 assessee has shown substantial business income. We note that the balance sheet for the financial year 2015-16 was not before the authorities below. Furthermore the submission that there was a temporary lull and the business has subsequently picked up, was also not before the authorities below. However the proposition that when there is a temporary lull in the business, it cannot be said that there is a cessation of business by the assessee, is supported by the decision of Hon’ble High Court decision as cited above. When there is no cessation of business, assessee is engaged in doing business and the business expenditure as appropriate deserves to be allowed. However since we note that the additional evidence and the new submissions were not before the authorities below, hence in the interest of justice we remit this issue the file of the A.O. The A.O shall examine the issue afresh in light of the additional submissions of the assessee. Appeal of the assessee allowed for statistical purposes.
|