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2019 (7) TMI 1095 - HC - Income TaxDisallowance of expenses u/s 37(1) - disallowance of depreciation u/s 32 - proof of commencement of business - ITAT stated that the nature of business of the assessee company was to develop various common facilities and the material facts as elaborated in the order substantiate that the business of the assessee company was set up during the year under consideration - ITAT further held that assessee company was entitled to depreciation on plant and machinery which includes office equipment and vehicle, computer, computer software and furniture, fixture used for the purpose of business HELD THAT:- Tribunal, while concurring with the findings recorded by the CIT(A), has observed that having regard to the materials on record it can be said that the business of assessee had been set up and that the only thing was that the assessee was not able to generate any income out of the same. The CIT(A), as well as the Tribunal, have placed reliance on the decision of this Court in the case of CIT Vs Saurashtra Cement And Chemical [1972 (8) TMI 19 - GUJARAT HIGH COURT] this Court, explaining the meaning of “business”, held that “business” connotes a continuous course of activities, which go to make up the business, need not be started simultaneously in order that the business may commence. The business would commence when the activity which is first in point of time and which must necessarily precede all other activities, is started - Decided against revenue.
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