2002 (7) TMI 44

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..... ed the following question for our opinion: "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in allowing the assessee's claim for writing off of the sum of Rs. 52,489 and litigation expenses at Rs. 12,000?" During the assessment year 1979-80, the Assessing Officer noticed that a sum of Rs. 52,489 was written off on account of advance made to the agricul .....

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..... Income tax Officer. In appeal before the Tribunal, the Tribunal allowed the claim of the assessee. In para. 6 of its order, the Tribunal observed as under: "After carefully considering all the facts and circumstances of the case, we are inclined to uphold the assessee's contention. So far as the identity of the business is concerned, it is not the nature of the item manufactured but the test for .....

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..... the total expenditure for setting up the new project. But, in the present case, the new project has never matured. The expenditure incurred by the assessee has, therefore, to be written off. The efforts to make a new project by the same management in relation to the same business would certainly come within the test of identity laid down by the Supreme Court in the two authorities cited aforesaid .....

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