TMI Blog2022 (12) TMI 1158X X X X Extracts X X X X X X X X Extracts X X X X ..... iture in the form of salary, etc other expenses. AO as well as the ld. CIT(A) simply discussed the legal principle without adverting to the material facts on record and had not really decided whether the appellant company had set-up of business and ready to commence the business or not. On perusal of the Profit Loss Account placed at Paper Book indicates that certain expenditure was incurred in connection with business which was sold were also debited to the Profit Loss Account. Therefore,AO as well as the ld. CIT(A) had failed to examine the nexus of the expenditure incurred and the new business stated to have been set-up. In these circumstances, we are of the considered opinion that the matter requires remission to the file of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Officer, Ward-14(4), Pune ( the Assessing Officer ) vide order dated 29.11.2016 passed u/s 143(3) of the Income Tax Act, 1961 ( the Act ) at a total income of Rs.2,21,92,970/-. The disparity between the retuned income and assessed income is on account of not allowing the business loss incurred on account of expenditure incurred from the date of set-off of the business against the interest income earned on the deposits made out of the funds lying with the assessee company. The factual background of the case is as under : During the immediate preceding year i.e. financial year 2012-13, the appellant company sold his business. Thereafter, the appellant company was in the process of setting up of a new business, incurred certain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Dhoomketu Builders Developments (P.) Ltd., 34 taxmann.com 18 (Delhi). (iii) Maruti Insurance Broking (P) Ltd. vs. DCIT, 127 taxmann.com 685 (Delhi). (iv) Ashoke Marketing Ltd. vs. CIT, 73 Taxman 126 (Cal.). 6. On the other hand, ld. Sr. DR placing reliance on the order of the ld. CIT(A) submits that no interference is called for. 7. We heard the rival submissions and perused the material on record. The issue that arises before us for our consideration is as to the deductibility of the expenditure incurred between set-up business and actual commencement of business, set off of such expenses against the interest income earned on FDs made out of idle funds or not. The admitted facts of the case are that in the immedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Profit Loss Account placed at Paper Book indicates that certain expenditure was incurred in connection with business which was sold were also debited to the Profit Loss Account. Therefore, the Assessing Officer as well as the ld. CIT(A) had failed to examine the nexus of the expenditure incurred and the new business stated to have been set-up. In these circumstances, we are of the considered opinion that the matter requires remission to the file of the Assessing Officer to decide the issue in appeal with reference to the material on record whether the appellant company had set-up a new business or not. In case, on examination of the material on record, the Assessing Officer formed an opinion that new business had been set-up, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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