TMI Blog2013 (10) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... cern placed an order with M/s. Alps Engineering Services Pvt. Ltd., for construction of a cold storage plant at its factory at Coimbatore and advanced a sum of Rs. 7,89,500. The said Alps Engineering Services Pvt. Ltd., did not commence the work due to their financial strain. A sum of Rs.2 lakhs was recovered from the advance already paid and the balance was claimed as deduction from the total inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assed by the Commissioner of Incometax (Appeals), dated December 16, 2002, pertaining to the assessee for the assessment year 1998-99. This tax case (appeal) was admitted by this court on February 13, 2007, on the following substantial questions of law : "1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that when an amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly with regard to substantial questions of law 2 and 3 alone. The said submission is recorded. The case of the assessee is that the Assessing Officer disallowed a sum of Rs. 5,89,500 being the advance written off as irrecoverable. The assessee is an ice cream manufacturing concern. On February 3, 1996, the assessee concern placed an order with M/s. Alps Engineering Services Pvt. Ltd., for const ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preferred a second appeal before the Income-tax Appellate Tribunal in I. T. A. No. 283 of 2003 raising the very same contention regarding business loss, which was dismissed by the Tribunal by following the judgment of the hon'ble Supreme Court reported in Empire Jute Co. Ltd. v. CIT [1980] 124 ITR 1 (SC). Against the said order assessee has filed the present appeal. The learned counsel appearin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee was neither able to distinguish the said decision nor was in a position to show any other decision in support of his claim. In the decision reported in Hasimara Industries Ltd. v. CIT [1998] 231 ITR 842 (SC) it is held that if the assessee sustains business loss during the enlargement of the business, the same should be treated as capital investment and deduction can be made towards tax. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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