2005 (5) TMI 30

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..... by the assessee which was disallowed by the Assessing Officer on the ground that the assessee had not commenced its business during the assessment year. The claim of the assessee pertains to expenses incurred on travelling and conveyance, rent, telephone expenses, brokerage, maintenance and sales promotion - Assessing Officer was of the view that the business of the assessee would commence with t .....

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..... nclusion that the view of the Assessing Officer was incorrect. This being the clear position, we do not find any infirmity in the impugned order nor does it raise any substantial question of law
Judge(s) : SWATANTER KUMAR., MADAN B. LOKUR JUDGMENT The judgment of the court was delivered by Madan B. Lokur J.- The Revenue has preferred this appeal under section 260A of the Income-tax Act, 196 .....

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..... incurred. On appeal, the Commissioner of Income-tax (Appeals) (hereinafter referred to as "CIT(A)") set aside the view of the Assessing Officer. The Commissioner of Income-tax (Appeals) noted that there was a distinction between commencement of business and setting up of business and the two dates need not necessarily overlap. It was held that section 3 of the Income-tax Act refers to the date o .....

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..... referred the present appeal. Section 3(1) of the Act reads as follows: "3. 'Previous year' defined.-(1) Save as otherwise provided in this section, 'previous year' for the purposes of this Act, means the financial year immediately preceding the assessment year: Provided that, in the case of a business or profession newly set up, or a source of income newly coming into existence, in the said fin .....

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..... to the date of setting up the business, the Commissioner of Income-tax (Appeals) and the Tribunal merely relied on the explicit language of the section to come to the conclusion that the view of the Assessing Officer was incorrect. This being the clear position, we do not find any infirmity in the impugned order nor does it raise any substantial question of law. Dismissed.
Case laws, Decisio .....

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