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TMI Blog2013 (4) TMI 799X X X X Extracts X X X X X X X X Extracts X X X X ..... rdering for set off of such expenses against the income of ₹ 1 lac erroneously assessed u/s. 6, (c) and further erred in not ordering for carry forwarded of un-set off business loss. Addition u/s 68: 2.1. The Id. CIT(A) erred in not deleting addition of ₹ 1 lac made by the A.O. u/s 68 of Income Tax Act, 1961. 2.2. The I.D. CIT (A) erred in not appreciating the peculiar circumstances due to which the appellant could not produce before the A.O. the confirmation of the lender for the loan of ₹ 1 lac taken by the appellant. 2.3 The Id. CIT (A) ought to have either accepted the confirmation of the lender for loan of ₹ 1 lac taken by the appellant, produced before him, or forwarded the same to the A.O. u/r 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r under consideration the question of allowability of the expenses does not arise. Accordingly, the AO is disallowed the expenses debited to the profit and loss account. 3.2 On appeal, the CIT (A) has concurred with the view of the AO and accordingly rejected the claim however, 5% of the expenses were permitted as mandatory for day to day administrative and incidental expenses. 3.3 Before us, the Learned AR of the assessee has submitted that there is no permanent closer of the business of the assessee but the suspension of manufacturing activity due to the fact that the assessee company has under gone the rehabilitation scheme of BIFR and therefore, for a long time it remained lock out. He has further contended that the assessee has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d) (5) CIT Vs. Anita Jain [(182 Taxman 173 (Del.) (Dormant Business) 3.5 On the other hand, the Learned DR had relied upon the order of authorities below and submitted that there is no dispute that since long time the assessee has not carried out any business activity therefore, there is no business in the year under consideration. He has further contended that even otherwise the expenses incurred by the assessee are capital in nature and therefore, cannot be allowed. 4. We have considered the rival submission as well as relevant material on record. We have carefully perused the details of the expenditure booked by the assessee in the profit and loss account. We have find that the expenditure claimed by the assessee is not capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ked the assessee to furnish loan confirmation of all four parties giving therein Address and Pan. The assessee furnished loan confirmation in respect of three parties however loan confirmation in respect of loan taken from M/s. Mustafa Catering Services, Haderabad of ₹ 1 lac was not furnished. Thus, the AO made an addition of ₹ 1 lac u/s 68 of the Act for want of loan confirmation. 5.2 On appeal, the assessee filed loan confirmation before the CIT (A) however the CIT (A) declined to admit the fresh evidence. 5.3 Before us, Learned AR of the assessee has filed an application for admission of additional evidence which was rejected by the CIT (A). He has submitted that in order to finance restructuring of business in terms of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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