9911796707
TMI Blog2015 (6) TMI 898X X X X Extracts X X X X X X X X Extracts X X X X ..... t carried out any business activities during the year under consideration. ii) The assessee has not carried out any business activity since 1996-97; iii) Even in the later year no business activity has been carried out by the assessee. iv) i), ii) & iii) above prove that the assessee has no intention to resume its business activity and the assessee has stopped the business for good from 1996-97." 2. Heard and considered the arguments advanced by the parties in view of orders of the authorities below, material available on record and the decisions relied upon. 3. The facts in brief are that in the assessment year 2008-09, the assessee has computed business loss amounting to Rs. 34,05,956 after claiming business expenditure under differe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer has noted that during the years under consideration, the assessee company had not manufactured any product and not traded in any item and had earned interest on FDR only. Since no business activity was carried out during the years, the Assessing Officer was justified in holding that the question of computation of business income did not arise. He submitted further that the decision in the case of P.C. Bhandari & Co. Ltd. vs. ACIT, Delhi - ITA No. 1272/2008 and in the case of Anita Jain - 182 Taxmann 173 (Del.) cited before the Learned CIT(Appeals) having distinguishable facts are not helpful to the assessee. He submitted that in the present case, the assessee was not waiting for proper market conditions instead the factory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f business is at a dormant stage waiting for proper market condition to develop, the expenditure incurred in the course of such a business is to be allowed as deduction. The Learned CIT(Appeals) has observed on perusal of assessment record of earlier years that the Assessing Officer had been assessing the business loss claimed by the assessee on account of administrative and other expenses incurred for earlier years after due verification of books of account and relevant documents, however, during the assessment years under consideration, the entire expenses have been disallowed on the basis that there has been no manufacturing or trading activity during the relevant previous years. The contention of the assessee before the authorities belo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t case, before the Hon'ble Supreme Court, the assessee company was engaged in the business of manufacture and export of garments and claimed expenses of Rs. 13,41,135 on account of salary and depreciation. As per revenue record, the assessee company started its business in the year 1997 and has done its business but in the year 1999-00 and in the current year, it had suffered recession and the company could not procure export orders in the year under consideration, but the company claimed only those expenses which were necessary to maintain the business and assets of the company which were allowable under the Income-tax Act, 1961. Almost similar are the facts of the present case during the years under consideration as it is not the case ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
