9911796707
TMI Blog2022 (5) TMI 438X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant therefore prays that the order of the CIT(A) be set aside and the AQO be directed to delete the disallowance of Rs. 3,58,603. 3. Brief facts of the case are that the assessee is an entity of the Cineyug Group of concerns and is engaged in the business of film production. It was observed that the assessee had not filed its Return of Income for the relevant year although as per Form 26AS, it was in receipt of substantial amount of rental income. Therefore, the assessment in this case was reopened by issue of notice u/s. 148 after obtaining necessary approval of the Range-head. During the year under consideration, the assessee had claimed business expenses of Rs. 3,58,603/-. In course of the reassessment proceedings, the AO observe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4/- ix. Tempo Traveler Expenses:- 4758/- Total 358603/- 5. The AO asked the assessee to provide justification for expenses. Assessee responded as under:- "Justification of claim of loss of Rs. 3,42,603/-. a) Our clients are holding satellite rights of one motion picture "Raja Hindustani" jointly with another company. The receipts from sale of satellite rights from time to time have been offered under the head Income from Business. b) During the year under review there was no receipt from satellite rights. It has also leased out its two office premises and the income from rentals has been offered under the head Income from House Property. c) During the year, our clients had carried on the business. However as there was no busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of assessee for A.Y. 2014-15 wherein the appeal of the assessee was dismissed. The relevant portion of my order for A.Y. 2014-15 in case of the assessee is reproduced as under:- "The submissions and contentions of the assessee have been duly considered. It is observed that during the relevant year the assessee did not receive any business receipts. It is further observed that in the subsequent two years i.e. the years relevant to A.Ys. 2015-16 and 2016-17, also the assessee has not received any business receipts. If the relevant year was the only year in which the assessee had not earned any business receipts, the contention of the assessee that its business was operational though no receipts were received during the year would have be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is amply clear from the facts on record, that there was a temporary lull during this period. In the earlier years, assessee has done business and in subsequent years also business receipts are there. In these circumstances, when there is a temporary lull, assessee cannot be denied the basic expenditure, which were required to carry on and retain the business infrastructure. By no stretch of imagination, it can be held that, if there is no business receipt during the year, assessee should wind up the infrastructure and start all over again when the business receipts start following. Ld. CIT(A) reliance upon his own earlier order do not change of facts and circumstances that there is temporary lull. It has not been disputed by revenue autho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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