TMI Blog2011 (9) TMI 667X X X X Extracts X X X X X X X X Extracts X X X X ..... h 29,14,242, treated as Capital Expenditure - Held That:- In view of Narain Swadeshi Weaving Mills v. CEPT (1954 - TMI - 11 - SUPREME Court), since the assessee had been doing other business activity also, namely, "trading" it could not be said that the assessee had closed its business. - Decided in favor of assessee. - 1092 of 2011 - - - Dated:- 19-9-2011 - SIKRI A. K., SIDDHARTH MRIDUL, JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowed the same. 6. The assessee preferred an appeal thereagainst. The Commissioner of Income-tax (Appeals) upheld the disallowance made by the Assessing Officer on account of severance cost of employees, however, expenses shown on market and research expenses was allowed treating the same as revenue in nature. Both the assessee as well as the Revenue preferred appeals against the aforesa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as a closure of business of the assessee and on that basis he opined that the expenditure incurred was capital in nature. The Income-tax Appellate Tribunal has, however, recorded a finding of fact that the assessee was into more than one business activities, namely, apart from manufacturing aforesaid powdered soft drink under the name and style of "Tang", the assessee was also trading in soft drin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the expression "business" and held that business connotes some real substantial systematic and organised course of activity or a conduct with a set purpose. In the present case, since the assessee had been doing other business activity also, namely, "trading" it could not be said that the assessee had closed its business with the suspension of manufacturing powdered soft drink. We are quite in a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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