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TMI Blog2005 (4) TMI 513X X X X Extracts X X X X X X X X Extracts X X X X ..... in the light of the above factual position, the claim for deduction of expenses could not have been declined on the ground that the business of the assessee was not continuing in the relevant previous year. As evident from the nature of expenses debited in the profit and loss account, a copy of which was placed before us at the compilation of papers, unambiguously shows that even the business activities were carried out in the relevant previous year. Keeping all these factors in mind, as also entirety of the case, we are of the considered opinion that the CIT(A) was indeed not justified in holding that there was a cessation of business. The assessee s above grievance is, therefore, quite justified, and we uphold the same. Claim for admissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l benefits paid to the employees and the amount paid to the workers under settlement. The assessee is also aggrieved that the CIT(A) erred in not considering the claim of set off of brought forward loss of Rs. 25,18,705 from the assessment year 2000-01 claimed in the computation of total income in the return of income filed on 31st October, 2001. 3. The main controversy, however, hinges on whether or not it was a case of cessation of business. 4. We have heard the rival contentions, perused the material on record and duly considered factual matrix of the case as also the applicable legal position. 5. On a careful perusal of the orders of the authorities below, we are unable to finding any material to suggest, leave aside establish, cessa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us admitted position that no activities were carried out so far as this part of the business was concerned. On these facts, Their Lordships took note of the position that "there is nothing on record to show that he completely abandoned or closed the business forever. On the other hand, his books of account revealed that he was meeting the establishment charges and interest payments as detailed in the accounts in the year of account." It was then observed that the question whether the business is being carried on must depend in each case on its own facts and not on any general theory of law. Their Lordships then referred to, with approval, Lord Summer's observa- tion in IRC v. South Behar Railway Co. Ltd. [1925] 12 Tax Cas. 657 that "Busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tled. On the basis of material on record, it could not thus be said, as was the case before the Hon'ble Madras High Court, that the assessee had "completely abandoned or closed the business forever". In our considered view, there is no material to suggest that the cement manufacturing operations of the assessee company were in a stage more than that of suspension. Applying the test laid down by Hon'ble Madras High Court in L. Ve Vairavan Chettiar's case (supra), and in the light of the above factual position, the claim for deduction of expenses could not have been declined on the ground that the business of the assessee was not continuing in the relevant previous year. As evident from the nature of expenses debited in the profit and loss ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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