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Issues involved: Determination of the commencement date of the assessee's business for the assessment year 1975-76.
Summary: The judgment pertains to an application u/s 256(2) of the Income-tax Act, 1961, regarding the commencement date of the assessee's business for the assessment year 1975-76. The Inspecting Assistant Commissioner treated the expenditure from December 14, 1974, to December 31, 1974, as revenue expenditure, while the Tribunal found that no business activity had taken place before December 14, 1974. The Tribunal's decision was based on the fact that actual production had not started, raw material had not been purchased, and no orders had been procured before December 14, 1974. The High Court, after hearing both parties, concluded that the Tribunal's finding that the business was set up on December 14, 1974, was a factual determination. Since no question of law arose from the Tribunal's order, the application was dismissed. The court held that the commencement date of the business was a question of fact, and as such, the application was rejected. The parties were directed to bear their own costs in this matter.
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