TMI Blog1935 (9) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... clone but still incurs expenditure during the year of account with the intention of resuming the same if conditions and prospects proved favourable, but the business in fact was never resumed, is the expenditure so incurred allowable as a deduction against the profits and gains of the assessee's other business? The facts are these: The assessee is a company incorporated under the Indian Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessed to income tax by the Income Tax Officer of Bombay as it had its principal place of business at Bombay. In that year the principal place of business was changed to Madras and the duty of assessing the company to income tax for 1930-31 fell to the Income Tax Officer in Madras. In 1928-29 the Bombay Income Tax Officer allowed the sum of ₹ 5,420 being the loss of the mica business at Nell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to resume the business of the mica mining if conditions and prospects proved favourable and that the expenditure had been incurred with that intention'. After the receipt of this finding this Court directed the Commissioner to refer the point stated at the beginning of this judgment. The question for decision is whether the assessee in the circumstances of the case may be said to have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... When production was stopped by a cyclone, the company started prospecting to find out whether the business can be carried on, and incurred, the expenses in question, with a view to resume production. How can it then be said that the business had stopped? It is admitted that the old staff of the company doing the mica business was maintained by it on a reduced scale, the work of prospecting was do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cases brought to our notice as the decision whether the business was being carried on must depend in each case on its own facts and not on any general theory of law. Having regard to the circumstances of the present case we think the expenditure incurred by the company in 1928-29 was with respect to the carrying on of the mica business which it carried on along with its other business and the amo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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