2024 (4) TMI 1120 - SCH - Income Tax

Nature of expenses - re-characterizing revenue expenses incurred by as capital expenditure by AO - correct approach in law and on the facts adopted or not? - as per AO assessee had made no effort to earn income - as per ITAT AO s approach, was that the respondent/assessee was not earning revenue, was completely misdirected - as per HC 2023 (10) TMI 329 - DELHI HIGH COURT proposition put forth by the AO that since there is no income chargeable under Section 28 of the Act, therefore, no expenses could be claimed by an assessee under Sections 30 to 37 of the Act, in our view, is completely unsustainable. HELD THAT - There is a delay of 106 days in preferring the present special leave petition. Even on merits, however, we are not inclined to interfere with the impugned judgment as it is accepted that business had commenced. Hence, the special leave petition is dismissed.

Summary

The Supreme Court dismissed the special leave petition due to a delay of 106 days and declined to interfere with the impugned judgment as business had commenced.