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2022 (5) TMI 438 - AT - Income TaxDisallowance of business expenses u/s. 37 - No business carried out by assessee - assessee's submission that there was a temporary lull during the period and assessee had to incur basic expenditures to retain and carry the business infrastructure - HELD THAT:- It is amply clear from the facts on record, that there was a temporary lull during this period. In the earlier years, assessee has done business and in subsequent years also business receipts are there. In these circumstances, when there is a temporary lull, assessee cannot be denied the basic expenditure, which were required to carry on and retain the business infrastructure. By no stretch of imagination, it can be held that, if there is no business receipt during the year, assessee should wind up the infrastructure and start all over again when the business receipts start following. CIT(A) reliance upon his own earlier order do not change of facts and circumstances that there is temporary lull. It has not been disputed by revenue authorities that receipts from the business have started in 2017-18. Hence, assessee;s plea of temporary lull is justified. - Decided in favour of assessee.
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