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TMI Blog2016 (1) TMI 537X X X X Extracts X X X X X X X X Extracts X X X X ..... In our opinion, the learned Commissioner of Income Tax (Appeals) has passed a reasoned and justified order and we do not find any reason for interfering into the findings of the Commissioner of Income Tax (Appeals). - Decided against revenue - ITA No. 1646/Del/2012 - - - Dated:- 11-12-2015 - SMT. DIVA SINGH, JUDICIAL MEMBER ANDSH. O.P. KANT, ACCOUNTANT MEMBER For the Appellant : Sh. Yatendra Singh, Sr.DR For the Respondent : Sh. V.K. Jain, CA ORDER Per: O P Kant: The present appeal by the Revenue is directed against the order of learned Commissioner of Income Tax(Appeals)-XV, New Delhi dated 18.01.2012 passed for the assessment year 2006-07. The Revenue raised the following grounds of appeal: i. Whether learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imed on the plant and machinery. However, the activities of following the legal disputes with various Government Departments continued during the year and for that purpose minimum expenses on salary and wages, repair and maintenance, telephone, vehicle, rent etc., were incurred. The Assessing Officer after considering the submission of the assessee allowed the legal and professional expenses , however, disallowed the remaining expenses of ₹ 24,64,325/- on the ground that the assessee did not carry out any business activity. Aggrieved, the assessee filed an appeal before the Commissioner of Income Tax(Appeals). Before the learned Commissioner of Income Tax(Appeals), the assessee submitted details of expenses debited in the profit and l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is seen that due to ongoing litigation with the Kerala State Electricity Board (provider of electricity), IFCI Ltd. (lender) and Employees State Insurance Corporation, it was not in a position to carry out such manufacturing activity. The appellant company was in the process of defending various legal cases in connection with re-payment of liabilities of the appellant company, protection of its fixed assets, fighting legal case for maintaining the business of the company and also for settling dispute with the ex-employees and trade unions. Therefore it cannot be held that the appellant company did not carry out any business during the year under appeal. The AD himself allowed deduction for legal and audit expenses for ₹ 9,83,000/- o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hearing before us the learned Sr. Departmental Representative relied on the order of the Assessing Officer and on the other hand, the learned Authorized Representative of the assessee submitted that the claim of the Assessing Officer that no business activity was carried out in the last eight years, was absolutely incorrect and he referred to the financial statements for the last eight years filed in the paper book showing manufacturing and purchases and sales. He further submitted that the year under consideration, the assessee could not manufacture because no electricity was supplied to the company by the Kerala State Electricity Board on the terms agreed. The learned Authorized Representative further submitted that in the year under cons ..... X X X X Extracts X X X X X X X X Extracts X X X X
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