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2021 (8) TMI 481 - HC - Income TaxAmount written off as incurred in the course of assessee's business - Validity of Security deposit written off as irrecoverable as a revenue expenditure - HELD THAT:- Assessee by treating the expenditure as business expenditure, the Tribunal took note of the fact that the AO and the CIT (Appeals) have not disputed the details regarding the income and expenditure furnished by the assessee and the AO only concluded that, since the security deposit is in the nature of a capital expenditure, the same cannot be allowed as a business loss. Though the Commissioner of Income Tax (Appeals) had rendered a finding that the transaction itself was a sham transaction, the Tribunal rightly noted that the Assessing Officer has not disputed or doubted the genuineness of the transaction. Tribunal noted that the income and expenditure from business was accepted by the Revenue authorities for the earlier years treating the business activity of dehydrated vegetables as a separate and discontinuation of the business of the assessee, is not a correct view taken by the authorities when the assessee has considered both the business activities as its business and offered the income and expenditure for the earlier years, which was accepted. No substantial question of law.
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