TMI Blog2015 (8) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee’s business is temporarily suspended and there is every possibility of its revival, as the assessee has gone in BIFR for revival of its business. We, therefore, find no infirmity in the order of the ld. CIT(A) on this issue and accordingly we confirm the same. - Decided against revenue. - ITA No.427 & 95/LKW/2014, ITA No.88/LKW/2014 - - - Dated:- 30-7-2015 - SHRI SUNIL KUMAR YADAV AND SHRI. A. K. GARODIA, JJ. For The Department : Smt. Swati Ratna, D.R. For The Assessee : Shri. B.P. Yadav, Cost Accountant ORDER PER SUNIL KUMAR YADAV: These appeals are preferred by the assessee as well as the Revenue against the respective orders of the ld. CIT(A). 2. Since common issues are involved in these ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... immediately preceding year. These expenditures include expenses on diesel stores spares consumed, salary and wages including bonus, gratuity, employers contribution to provident fund, ESI, insurance, repairs and maintenance, etc. The assessee was asked to justify these expenses and in response thereto it was explained that the assessee s business has been temporarily suspended and the assessee-company has all intentions to resume the business and the assessee is pursuing the proceedings before the BIFR and the other corporate activities, legal and other proceedings relating to Company Law are being carried on. 5. Being not convinced with the explanations of the assessee, the Assessing Officer has disallowed the entire expenditure of & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee alive. 9. Having carefully examined the orders of the lower authorities in the light of the rival submissions, we find that undisputedly the assessee has gone to BIFR for revival of its industry and since there is temporary suspension of the business activities, therefore, minimum expenditure should be allowed. We accordingly find no merit in the arguments of the ld. D.R. Being convinced with the findings of the ld. CIT(A), we confirm the same. 10. So far as ground No.2 is concerned, we find that the assessee has claimed miscellaneous expenditure of ₹ 13,18,626/- as against miscellaneous expenditure of ₹ 17,32,443/- in the immediately preceding year. The Assessing Officer observed that the main expenditure cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration to its Managing Director Shri. R. K. Somany as against ₹ 10.50 lakhs in the preceding year. The said remuneration was duly approved by the General Body Meeting of the company. It was, however, contended that the Assessing Officer has not doubted the services rendered by the Managing Director, rather, on the contrary he has observed in the impugned assessment order that the services have been rendered by the Managing Director, but the Assessing Officer has failed to appreciate whether the business of the assesseecompany was under animated suspension and there was enough evidence in respect of intention of the assessee to resume the business activity after the sanction of the scheme by the BIFR. Relying upon this evidence, the ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue s as well as assessee s appeals relates to the disallowance of expenditure claimed by the assessee to keep the business unit of the assessee-company alive. 17. In this regard, the facts borne out from the record are that the assessee has claimed an expenditure of ₹ 10,65,821/- on account of diesel stores spares consumed, salary and wages including bonus, gratuity, employers contribution to provident fund, ESI, insurance, repairs and maintenance, etc. The assessee was asked to justify these expenses, but being not convinced with the explanations of the assessee, the Assessing Officer has disallowed the entire expenditure, which was restricted to by the ld. CIT(A) upto 50%. 18. Identical issue was examined by us in the foreg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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