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TMI Blog1953 (3) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee had an office at Kanpur. Under the Sugar Control Order, 1942, the Sugar Controller for India issued a notification No. 32 S.-C. (2) 42, dated April 25, 1942, to the following effect:- In exercise of the powers conferred by clause 3 of the Sugar Control Order, 1942, the Sugar Controller for India hereby notifies the 30th April, 1942, as the date after which no producer shall dispose of, or agree to dispose of, or in pursuance of any agreement entered into on or before that date make delivery of, any sugar except (i) to a recognised dealer, or (ii) to a person specially authorised by the Controller to acquire sugar on behalf of the Central Government or of a Provincial Government. The Sugar Control Order mentioned above h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the dates 1st of October, 1944, and 7th of March, 1945. It appears that the directors of Shankar Sugar Mills Ltd. on the 7th of March, 1945, passed a resolution that the selling agents will not be given any more brokerage for sale of sugar after the 1st of October, 1944. It also appears, though the fact is not clearly set out in either the statement of the case or the order of the Appellate Tribunal, that though the selling agents could no longer work as selling agents by reason of the Government notification, the company continued to pay them brokerage up to 30th of September, 1944, on sale of sugar made by the company direct to the dealers nominated by the Government. This they might have done as the selling agents were appointed for a p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd did not receive any sugar from the company, nor did they do any work as selling agents nor were they paid any brokerage. These may be relevant considerations, but the question whether a business is being carried on or not must depend in each case on its own facts. A company may not obtain or be able to execute a single business contract for months and yet it may be deemed to carry on its business if during the period of lull and inactivity it is kept alive, retains its registered office and holds meetings etc. It is not necessary that a business to be in existence should have work all the time. There may be long intervals of inactivity and a concern may still be a going concern though it may, for some time, be quiet and dormant. The mere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nting year and the profits of which are under assessment. If during the relevant period there was, in fact, no business either because it was discontinued or for some other reason it had ceased to exist, the question of computation of its income after deducting the expenses cannot arise. In the case before us, by reason of the Sugar Control Order and the notification issued thereunder, the assessee could not do any selling agency business in sugar. By merely maintaining an office at Kanpur it cannot be said that he was carrying on business the expenses of which he was entitled to deduct. There being, therefore, no business, there could be no question of computation of its income and no question of any deduction of expenses incurred wholly o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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