9911796707
TMI Blog1978 (4) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... , an individual, started business in the name of Pharma Chem. Since no production was made during this year, the ITO did not allow the assessee s claim of loss of Rs. 6,399.00, which he claimed towards expenses. In his opinion "Since no business has been done during this year, no expenses are allowed." In appeal, the AAC confirmed it. 3. Before us the assessee s representative stated that the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reafter correspondence went on with Drug Authorities and they wanted the assessee on 24th Oct., 1973 to file certain additional documents and ultimately the drug licence was issued to the assessee by the drug Authorities on 14th Dec., 1973 after due inspection by the Drug Controller. After obtaining the licence the assessee was ready to start the business but since no raw material was available fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tative., on the other hand, has placed reliance on the orders of the authorities below and has submitted on the basis of the same that unless the goods were manufactured by the assessee, which admittedly was not done in this case in this year, the assessee could not claim the expenditure incurred by him. It was submitted that obtaining the building and fitting in plant and machinery therein or eve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to apply for import licence etc. It cannot, however, be said that even after that date the assessee s business has not commenced. The assessee could have started his business and produced the goods but for want of raw material, it could not do so. In our opinion, it would be fair and reasonable to reject the assessee s claim for expenditure prior to14th Dec., 1973and to allow the assessee s clai ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
