TMI Blog2014 (3) TMI 933X X X X Extracts X X X X X X X X Extracts X X X X ..... - Dated:- 7-3-2014 - Shri G. D. Agrawal And Shri Chandra Mohan Garg,JJ. For the Appellant : None For the Respondent : Shri Sameer Sharma, Sr. DR ORDER Per Chandra Mohan Garg, Judicial Member. This appeal has been preferred by the Revenue against the order of Commissioner of Income Tax(A)-XIX, New Delhi dated 29.07.2011 in Appeal No. 77/2008-09 for AY 2006-07. 2. Ground no. 2 of the revenue is general in nature which needs no adjudication. Remaining sole ground of the revenue reads as under:- On the facts and in the circumstances of the case and in law, the learned Commissioner of Income Tax(A)has erred in deleting the disallowance of Rs.1,26,67,497/- made by the Assessing Officer on account of presetting u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing previous year before the previous year in which first sale was made because a business of trading cannot such a long time for setting up a business. The AR of the assessee could not file anything substantial to refute this view. The replies filed by the AR of the assessee on this issue were considered and not found tenable. Various judicial pronouncement relied upon by the assessee are not covering the case of the assessee. In the case of the assessee, the business of sale of set top boxes will be treated as set up when the first set top box comes under its possession for sale. Section 28 applies only respect of business carried on during the previous year. As a consequence, the expenditure incurred before the setting up a business woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for setting up the same, either in whole or part or in any other way, to deal in all or in any of the following: a) Broadcast equipments such as cameras, telecinema products, production switcher and video effect systems, digital news production, server and media storage, digital recorders, routers and control systems, master control systems, modular equipments, production control products, broadcast production systems and audio/ video; b) Production systems, encoders, decoders, CoDecs, MPEG processing, network adaptors, management systems and modulators. c) Broadband related equipment such as set top boxes and communication related equipments and all other electrical and electronic appliances and apparatus of every description and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative appeared before us. We also noticed that there was no application for adjournment on behalf of the assessee in this case. On careful perusal of record, we find it appropriate to decide the appeal after hearing the ld. DR and we proceed to decide the appeal on merits. We have heard arguments of ld. DR and carefully perused the record. From the operative part of assessment order as reproduced hereinabove, we observe that the Assessing Officer held that the expenditure incurred before setting up of business would not be deductible while computing the income of the assessee for the previous year. The Assessing Officer further held that if the assessee carries on two businesses i.e. a) and b), the expenditure of business a is not deducti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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