TMI Blog2019 (1) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... ntroversy on the basis of numbers of decisions which have been mentioned in the order and is not required to be repeated. But the expenses and the depreciation are not in dispute - Decided in favour of assessee. - I.T.A. No.2944/Mum/2016 - - - Dated:- 19-12-2018 - SHRI M BALAGANESH, AM AND SHRI AMARJIT SINGH, JM For The Revenue : Shri Chaudhary Arun Kumar Singh For The Assessee : Shri Farrokh Irani ORDER PER AMARJIT SINGH, JM: The revenue has filed the present appeal against the order dated 04.02.2016 passed by the Commissioner of Income Tax (Appeals) -13, 1Mumbai [hereinafter referred to as the CIT(A) ] relevant to the A.Y.2010-11. 2. The revenue has raised the following grounds: - 1. Whether o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities and manufacturing of moulds and dyes etc. The assessee has claimed the depreciation and expenses relating to Nagpur Unit: - (i) Salary Expenses Rs.88,161/- (ii) Traveling Expenses Rs.15,761/- (iii) Watch Ward expenses Rs.7,12,459/- (iv) Professional Fees Rs.3,53,619/- (v) Service Charges Rs.2,00,000/- (vi) Depreciation Rs.1,17,54,684/- 1,24,83,470/- 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and circumstances, the CIT(A) has allowed the claim of the assessee and in support of this contention, the Ld. Representative of the assessee has also placed reliance upon the decision of the Hon ble ITAT Mumbai bench in ITA. No.6251/M/2010 for the A.Y. 2005-06 dated 11.05.2012 and in ITA. No.822/M/2005 for the A.Y. 2001-02 G.R. Shipping Ltd. Vs. DCIT dated 17.07.2008. Before going further, we deemed it necessary to advert the finding of the CIT(A) on record.: - 5 Decision - I have carefully considered the AO's order and the AR's submissions. The brief undisputed facts in this case are as follows The appellant - a company engaged in the business of executing construction contracts and forming part of the Gammon group had virtu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hon'ble Delhi Tribunal had held that so long as a company is not formally struck off the Register of Companies, it continues to have certain statutory obligations and needs to file statements and returns. For this purpose, as also for the purpose of retaining its status as 3 company, certain expenditure has to be incurred. It was accordingly held that the existence of business income cannot solely determine the existence of a business; expenditure has to be accordingly allowed even in the absence of business activity. In the case of Harsh International Pvt. Ltd. v. OCIT (ITA no. 2498/Del/2013, dated 14th February 2014) [copy placed on the appellate record), the Hon'ble Delhi Tribunal had dealt with the issue of alienability of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of the parcel of the land at Baramati. There is nothing on record that the assessee has wound up the business. There is a temporary lull in the business. The CIT(A) has decided the matter of controversy on the basis of numbers of decisions which have been mentioned in the order and is not required to be repeated. But the expenses and the depreciation are not in dispute. Further, we also find that the facts and circumstances of the present case is quite similar to the facts in ITA. No. 6251/M/2010 for the A.Y. 2005-06 dated 11.05.2012 in which the claim of the assessee was allowed by the Hon ble ITAT. Accordingly, we are of the view that CIT(A) has decided the matter of controversy judiciously and correctly which is not liable to be in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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