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TMI Blog2022 (10) TMI 977X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed by the authorities below and made certain enquiries with the director who was present, he pleaded that the Bench may take reasonable view in the matter under dispute. Since the bench felt that there should be a proper representation, the Bench requested Shri Jayant Bhatt, Chartered Accountant, who was present in the Court, to act as "amicus curie" in this matter in order to help the Bench. Shri Jayant Bhatt studied the file and advanced his arguments. 3. The only issue contested in this appeal relates to the decision of the learned CIT(A) in partially sustaining the disallowance of expenses made by the Assessing Officer. 4. The assessee is engaged in the business of manufacturing machineries and accessories used in pharmaceutical ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction activities during the year under consideration, the assessee was constrained to maintain its establishment with the hope of revival of the production. The Learned AR further submitted that the production has been stopped by the assessee during the year, because of the intense labour troubles faced by the company due to strike, bandh and non-attendance by labourers. The learned AR submitted that this difficult situation has caused temporary lull in the activities of the assessee and hence there is no reason to disallow expenses incurred by the assessee in the normal course. 7. He further submitted that the director of the assessee has stated that most of these expenses have been incurred through banking channels by way of cheque paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view in the decision rendered by Delhi bench of Tribunal in the case of ITA No. 321/Del/2016 for AY 2011-12 in the case of Micro Turners (P) Ltd. vs. JCIT (Date of Judgment: 04/05/2016), wherein it was held as under:- "..... we find that there is no dispute that whenever an assessee is able to establish that the expenses of rent staff and various other business expenses were incurred to keep its business alive they cannot be disallowed merely on the ground of temporary lull in business. Thus a temporary lull on account of the circumstances prevailing in the market cannot lead to the conclusion that the assessee has no intention to resume its business. The law on this issue is well-settled. Similarly the decisions in the context of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under consideration. Hence, in my view, there reasonable cause for the assessee in not producing vouchers in support of the expenses claimed by the assessee. However, the fact remains that similar expenses incurred in the earlier years have been allowed and this is the first year of stoppage of production. 11. Accordingly, in the facts and circumstances of the case, I am of the view that the dispute may be put to rest by making disallowance of part of expenses claimed by the assessee. This is due to the fact that considerable time, i.e., more than nine years have elapsed from the date of closure of the financial year. Hence, I am of the view that this issue should be settled at this stage. Considering the fact that similar expenses have b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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