2010 (2) TMI 145

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..... e assessee forcibly closed his business activities on account of local problems. Consequently, he allowed the appeal Being aggrieved by the same, the Revenue filed an appeal before the Income-tax Appellate Tribunal, which appeal came to be rejected by the Tribunal confirming the order passed by the Commissioner of Income-tax (Appeals). Held that- The Assessing Officer has failed to take note of the fact that the assessee did not close its business activities on its own. But it was on account of unforeseen circumstance. Such closure will not disentitle the assessee to claim the depreciation. Thus, we hold the substantial questions of law arising in this appeal against the Revenue and in favour of the assessee. Accordingly, the appeal is dism .....

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..... ess activities on account of local problems. Consequently, he allowed the appeal by his order dated October 16, 2002. Being aggrieved by the same, the Revenue filed an appeal before the Income-tax Appellate Tribunal, which appeal came to be rejected by the Tribunal confirming the order passed by the Commissioner of Income-tax (Appeals). Challenging the legality and correctness of the same, the present appeal is filed raising the following questions of law: "(1) Whether the appellate authorities were correct in holding that the assessee would be entitled to claim depreciation as well as expenditure under section 32 and section 37 of the Act respectively, even when admittedly no business activity is carried on by the assessee during the cur .....

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..... ny dispute between the employer and employees. Considering the problems in the locality not only the business of the assessee but also the business of others were closed and later on the same has been revived and it is functioning. He further contends that if the business had been closed not on account of the negligence attributable to the assessee, the Revenue can not contend that the assessee had closed its business, and, it cannot claim depreciation. In the circumstances, he requests the court to dismiss the appeal. 7. Having heard the counsel for the parties, we are of the view that the questions of law raised in this appeal are to be answered against the Revenue for the following reasons: 8. It is not in dispute that the asses .....

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