TMI Blog2012 (1) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... T (A) has erred on facts and in law in directing the A.O. to allow the losses claimed by the assessee at ₹ 12,28,782/- ignoring the fact that there was no business activity during the year under consideration and accordingly the preoperative expenses are not allowable. 3. The appellant craves leave for reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal. 2. The notice of hearing was sent to the assessee, however, none was present on the fixed date of hearing. Therefore, we proceeded to decided the present appeal ex parte qua the assessee after hearing the learned DR. 3. In the return of income filed, the assessee computed the loss of ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded). iii) Purchased computer and Air conditioner of ₹ 6,25,727/- for proper execution of the work. iv) Taken loan from M/s Bergner HK Ltd. for capital investment related to the business. v) Advance for acquisition of land to Smt. Parvati Danji Gala Smt. Mongiben Chapsi Gala ₹ 12,50,000/- each. vi) Set up other infrastructure required for setting up the business. 4. Referring to these activities, it was submitted that the assessee could not make any purchase or sale, but, it has entered into dialogue with the potential parties/clients and from these efforts the assessee could get the order and managed to start purchase and sales from July, 2007 and due to these efforts only the company managed to get sales of &# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the business at Chennai. The shop rent, electricity bill and telephone bills have been paid and on these facts it cannot be denied that the assessee had commenced the business. In the trade activity there is no preoperative period as the same is required in manufacturing activity and, thus, he has held that the assessee is entitled to have the benefit of carry forward of business loss and depreciation and directed the Assessing Officer to allow the loss claimed by the assessee. In this manner, the issue has been decided by the CIT (A) in favour of the assessee. The department is aggrieved by such findings recorded by the CIT (A) and has raised the aforementioned grounds of appeal. 7. After narrating the facts, it was submitted by the l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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