TMI Blog2012 (3) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... s any compromise between the assessee and Nalco as to the payment of interest and by virtue of the agreement, paid the interest during the accounting year. No material were brought on record. - Decided against assessee. - 441 of 2005 - - - Dated:- 2-1-2012 - MURUGESAN D., JANARTHANA RAJA P. P. S., JJ. JUDGMENT D. Murugesan J.- 1. This tax case appeal, at the instance of the Revenue, was admitted on the following substantial questions of law : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the Commissioner was not justified in revising the assessment order under section 263 ? 2. Whether, in the facts and in the circumstances of the case, business expenditure and the business loss can be set off against the income returned by the assessee being only the income from the house property after the closure of the business in the earlier years ?" 2. The respondent-company, hereinafter referred to as "the assessee", was engaged in the business of manufacturing and selling of aluminium con- ductors. On completion of the assessment under section 143(3) of the Income-tax Act for the assessment year 2001-02, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of expenditure and set off of business loss against the income from house property. The Tribunal ought to have seen that there was no accrual of interest expenditure during the relevant accounting year. Therefore, the order passed by the Tribunal is erroneous and also prejudicial to the interests of the Revenue. Under these circumstances, the order passed by the Tribunal should be set aside. 5. The learned counsel for the assessee contended that the Tribunal had considered all the facts and circumstances of the case and ultimately came to the conclusion that the Commissioner of Income-tax had no jurisdiction to revise the order under section 263 of the Income-tax Act. She has further contended that there was only a lull in the business and, therefore, the Tri- bunal may also give a finding that the assessee is carrying on distributor- ship of certain items of the sister concern. It was also further contended that there are enough materials available on the record to show that the assessee is entitled to the relief on the merits. 6. We have heard the learned counsel for the parties and perused the documents available on record. The Commissioner of Income-tax on two ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee started to purchase and sell aluminium foils and other mate- rials as a distributor of a group concern. The distribution of aluminium foils has an interconnection with the manufacture and sale of conductors and both the business activities cannot be considered to be independent or separate. The Commissioner of Income-tax, having referred to the fact that the assessee had started the business of purchasing and selling of aluminium foils and other materials as a distributor from the year 2003-04, has gone wrong in holding that the said activity cannot be considered to be a revival of the old business. The Commissioner had not adverted to the judgment of the Division Bench of this court, which we have referred to in the earlier portion of the order. Having noticed the above, the Tribunal has rightly appreciated the law and issue and has found that even though there was a temporary break, the assessee continued the business in dis- tributorship and also maintained the establishment, thereby incurred the expenditure which were wholly and exclusively for the purpose of the busi- ness. This finding of the Tribunal is in tune with the order of the Division Bench in the above case. Even ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CCS0416 23-4-1994 4,72,764 22-6-1994 14-3-1996 631 9 73,556 7 CCS0436 25-4-1994 4,60,375 24-6-1994 14-3-1994 620 9 71,402 8 CCS0480 26-4-1994 4,66,692 25-8-1994 14-3-1996 628 9 72,267 9 CCS0508 27-4-1994 4,63,823 26-6-1994 14-3-1996 627 9 71,708 10 CCS0561 29-4-1994 2,95,974 28-6-1994 14-3-1996 625 9 45,612 11 CCG1330 27-5-1994 13,95,493 6-11-1994 14-3-1996 642 9 2,20,908 12 CCG1368 28-6-1994 9,43,822 6-12-1994 14-3-1996 641 9 1,49,175 13 CCG1396 30-5-1994 2,87,884 14-6-1994 14-3-1996 639 9 45,359 Total 7,64,562 9. From a reading of the above, it is clear that there is a delayed payment. Therefore, the assessee had to pay 9 per cent. interest. But the learned counsel appearing for the assessee was unable to produce any materia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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