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TMI Blog2015 (6) TMI 898X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act, 1961. Almost similar are the facts of the present case during the years under consideration as it is not the case of the Assessing Officer that the expenditure of the assessee were excessive or unreasonable vis-à-vis its legitimate business requirements but the claimed expenditure has been denied by the Assessing Officer on the basis that it had not manufactured any product and not traded in any item and it had only earned income from interest on FDR. Thus CIT(Appeals) was justified in allowing the claimed expenditure which were disallowed by the Assessing Officer based on a wrong view. We are thus not inclined to interfere with the findings of the Learned CIT(Appeals) in this regard. The same is upheld. - Decided against revenue. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17,757, the assessee company had declared net business loss at ₹ 17,88,199 as per computation of income filed. As per profit and loss account, no sale or purchase had been made during the year by the assessee. Vide letter dated 27.9.2010, the assessee submitted that it had not manufactured any product and not traded in any item and that it had only earned income from interest on FDR during the year. The Assessing Officer was of the view that since no business activity was carried out during the year, the question of computation of business income did not arise. He, therefore, ignored the loss declared at ₹ 17,88,199 and assessed the net business income of the assessee at nil. The Learned CIT(Appeals) has, however, allowed the cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other hand placed reliance on the First Appellate Order and reiterated the decisions cited before the Learned CIT(Appeals) including the decision of Delhi Bench of the ITAT in the case of DCIT vs. Fortune Garments Ltd. (2011) - 7 ITR (Tribunal) 243 (Del.). 6. Considering the above submissions, we find that the assessee was engaged in manufacturing of black and white picture tubes which was discontinued due to adverse market condition a few years ago. The Assessing Officer disallowed the claimed business loss during the years under consideration on the basis that no business activities was carried out during the year hence the question of computation of business income did not arise. Undisputedly, it was not the case of the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has still not wound up. This fact has not been rebutted by the Revenue even before the ITAT. Further contention of the assessee remained before the authorities below that for the last several assessment years, the business loss has been assessed in the case of the assessee by the Assessing Officer in the same circumstances as obtaining in the assessment years under consideration and there was no reasonable cause for a change of opinion by the Assessing Officer. The Learned CIT(Appeals) has allowed the claimed expenditure mainly on the two basis. Firstly, the assessee, a public limited company has still not wound up and secondly following the principles of consistency, the administrative expenses incurred by the assessee should have been all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see were excessive or unreasonable vis- -vis its legitimate business requirements but the claimed expenditure has been denied by the Assessing Officer on the basis that it had not manufactured any product and not traded in any item and it had only earned income from interest on FDR. Under the above discussed facts and circumstances as well as the ratios laid down in the above cited decisions, we are of the view that the Learned CIT(Appeals) was justified in allowing the claimed expenditure which were disallowed by the Assessing Officer based on a wrong view. We are thus not inclined to interfere with the findings of the Learned CIT(Appeals) in this regard. The same is upheld. The ground is accordingly rejected. 7. In result, appeals a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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