2006 (2) TMI 141

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..... on which it had been incurring expenses. The office expenses that had been incurred were clearly of revenue nature. Considering the reasons recorded by the Tribunal and based on the valid materials and evidences, the same does not suffer from any legal infirmity. Tribunal was right in holding that the expenses claimed by the assessee could be allowed, even at the stage of development of the projec .....

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..... n the facts and circumstances of the case, the Tribunal was right in allowing business expenditure for a period prior to actual commencement of the business?" The facts leading to the above questions of law are as under: The relevant assessment years are 1992-93 and 1994-95. The assessee-company was incorporated on March 1, 1991. The assessee was carrying on the business of promoting time shar .....

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..... puting the assessment, the Assessing Officer took the view that the assessee had not carried on any business activity, and relied on Note No.9 to the statement of account wherein it had been mentioned that no amount had been accounted for sales, since the project was still under way. Hence he rejected the claim of loss. Aggrieved by the order of the Assessing Officer, the assessee filed an appea .....

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..... construction at the project site could not be an indicator for the commencement of the business of the company. The assessee had not carried out the construction on its own excepting that it gives the work to the contractor to carry on the construction activity on the land it possessed and mere completion of construction could not be taken as a commencement of the assessee's business. The time sh .....

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..... recorded by the Tribunal and based on the valid materials and evidences, the same does not suffer from any legal infirmity. In view of the foregoing conclusions, we find no error in the order of the Income-tax Appellate Tribunal and the same requires no interference. Hence, we answer the questions in favour of the assessee, against the Revenue. Accordingly, the above tax cases are dismissed. No .....

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