Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

M/s. Promain Ltd. Versus D.C.I.T., Circle 14 (1) , New Delhi

2016 (9) TMI 751 - ITAT DELHI

Disallowance of business loss - assessee has not carried out any business activity during the year under consideration - Held that:- The facts and circumstances prevailing over the disputed year, as emerged from the record before us, are that during this year, the assessee has not shown any business income but has declared business loss; that during this year, the assessee has not shown any business of Vyaj Badla; that during this year, the AO has noticed that the assessee has not carried out an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

filed before us, as to from which heads of above current assets, the assessee has earned interest income so as to decide the correct nature of interest income. So, proper examination is required on this count at the stage of Assessing Officer. If the impugned interest is found to have been earned by assessee from investments as per schedule-5 of the balance sheet, such interest income cannot be treated as business income as per Generally accepted Accounting Principles (GAAP) and if it is found t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

business of Vyaj Badla during the disputed year. It is also to note that in case all the facts and circumstances emerged during the investigation by AO, are found prevailing over the previous and subsequent years, as contended by assessee, the assessee’s claim will be eligible for allowance by applying the rule of consistency and if found otherwise, or if there is any change in the circumstances, the issue shall be decided in accordance with law whether the interest income earned by the assesse .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

al was dismissed. The assessee, thereafter filed a miscellaneous petition No. 06/Del./2013 for seeking rectification in the order dated 12.10.2012, which too stood rejected vide order dated 19.12.2014. The assessee challenged this order, passed in miscellaneous application of assessee, before the Hon ble High Court, who vide order dated 15.02.2016 set aside the order of Tribunal dated 19.12.2014 and restored the appeal in ITA No. 427/Del./2010 of the assessee with the following directions given .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

earned by the assessee. 16. Accordingly ITA No. 427/Del/2010 is directed to be listed before the ITAT peremptorily on 14th March, 2016 for a fresh decision on the limited ground of treatment of the interest income earned by the petitioner during A.Y. 2006-07. It is how the present appeal again came up for hearing before this Bench of the Tribunal. 2. The brief facts of the case are that during the course of assessment proceedings, it was noticed that the assessee had claimed business loss of  .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ear does not warrant to disallow the expenses and therefore, the loss occurred in connection with business was allowable to the assessee. It was also brought to the notice of Tribunal that similar expenditures have been allowed by the Revenue authorities in assessment order for A.Y. 2008-09 in the identical facts and circumstances of the case. However, the Tribunal dismissed the appeal of the assessee stating that the assessee could not bring any evidence that it was doing any business activity .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ome; that the Hon ble Tribunal in assessee s own case for A.Y. 2001-02 has allowed such expenditures holding that the assessee company is carrying on business activity which has been accepted throughout in past and in succeeding assessment years and therefore, in absence of any change in circumstances, the same needs to be followed in the impugned assessment years as well; that in assessment year 2008-09 also, similar claim of the assessee had been accepted by the department itself in the identi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. 2001-02 was not referred to at the time of hearing of appeal by the ITAT for disputed year. However, on perusal of copy of order for A.Y. 2001-02 placed in miscellaneous proceedings, the Tribunal observed that, the Tribunal had recorded a finding that in that year the assessee was carrying on business of Vyaj Badla financing as well as earning of interest income and admittedly in this year, the assessee did not carry on the business of Vyaj Badla. It was also held that mere earning of interest .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

carefully gone through the entire material available on record. As per directions of Hon ble High Court quoted above, the Tribunal has to decide the appeal on the limited issue of treatment of interest income of ₹ 48,312/- earned by assessee - whether business income or otherwise, with reference to rule of consistency so as to decide the business loss claimed by the assessee. As far as the adoption of consistent view is concerned, the assessee has cited the tribunal order in its own case f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rces, the assessee earned interest in those previous and subsequent years. The facts and circumstances prevailing over the disputed year, as emerged from the record before us, are that during this year, the assessee has not shown any business income but has declared business loss; that during this year, the assessee has not shown any business of Vyaj Badla; that during this year, the AO has noticed that the assessee has not carried out any business activity and that the interest income earned by .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version