TMI Blog2014 (11) TMI 1144X X X X Extracts X X X X X X X X Extracts X X X X ..... f the first appellate authority. - Decided against revenue - ITA No. 770/Del/2013 - - - Dated:- 11-11-2014 - C. M. Garg (Judicial Member) And J. Sudhakar Reddy (Accountant Member) For the Appellant : Ved Jain, CA, Ms. Rano Jain, CA, V. Mohan, Advocate For the Respondent : Parminder Kaur, Sr. DR ORDER J. Sudhakar Reddy (Accountant Member) This is an appeal filed by the revenue directed against the order of the Commissioner of Income Tax (Appeals) dated 5.11.2012 for the assessment year 2009-10. 2. Facts in brief :- The assessee is a company and is engaged in the business of developing/constructing multi storied complex as part of its exclusive SEZ project proposed to be called ASF Insignia . It filed its retu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account of disallowance of business expenses ignoring the facts that - (a) The assessee had not commenced its business during the relevant accounting period. (b) The assessee company itself admitting the fact that the most of work done during the year is capital work in progress for acquiring fixed assets. 5. We have heard Smt. Parminder Kaur, Sr. DR on behalf of the revenue and Shri Ved Jain, CA, Ms. Rano Jain, CA and Shri V Mohan, on behalf of the assessee. 6. On a careful consideration of the facts and circumstances of the case and a perusal of the papers on record and the orders of the authorities below we hold as follows :- 6.1. At the outset we observe that the alternative finding of the first appellate authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business and they might be a gap between the date on which the business is set up and the date of commencement of the business. The contention of the assessee also finds support from the judgments of the High Court in the case of CIT vs. Sarabhai Management Corporation Ltd. 102 ITR 25 (Guj) and CIT vs. Hughes Escorts Communication Ltd. 311 ITR 253 (Del). 6.3. The first appellate authority at para 5.5 held as follows :- In the present case before me, the appellant company, as stated herein above, has started systematic business activities. It has recruited the various staff and the staff(s) (sic) (are) engaged in carrying on the business activity. Further, it has entered into a commercial agreement with Tata Consultancy Services for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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