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TMI Blog1997 (3) TMI 634X X X X Extracts X X X X X X X X Extracts X X X X ..... year under consideration ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in deciding the issue and in favour of the assessee on the basis of the materials which were produced after the orders of the AO and CIT(A) and could not have been made available by the assessee either to the AO or to the CIT(A) ? 2. The assessee is a public limited company and for the asst. yrs. 1985-86 to 1987-88, it filed returns claiming loss of ₹ 58,86,185, ₹ 59,41,101 and ₹ 56,32,259 respectively. The assessee claimed deduction of certain expenses and depreciation allowance. The AO rejected the claim of the assessee on the ground that the assessee-company had stopped its production during th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal, therefore, directed the ITO to allow the claim of the assessee for all the three years. 3. The Revenue filed reference applications before the Tribunal seeking it to state a case to this Court and refer the questions of law set out in paragraph 1 above. The Tribunal held that since the finding of the Tribunal that there was a lull in business is a finding on fact, no question of law arose out of the order of the Tribunal. 4. Mr. C. V. Rajan, learned counsel for the Revenue submitted that the Tribunal was not justified in entertaining the new materials at the stage of hearing before the Tribunal and if the Tribunal was satisfied that the case should be considered in the light of the materials placed before it, it should have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the conclusion that the AO's view that the assessee-company had ceased its manufacturing activities and the assessee-company had intention to resume business activities is not correct. Though the documents relate to the year subsequent to the assessment years in question, still those documents have relevance to the question of determining the intention of the assessee to carry on its business. The Tribunal, after considering the documents came to the conclusion that there was only a lull in the manufacturing and the sanction of Board for Industrial and Financial Reconstruction clearly shows that the industry has to be revived. The finding of the Tribunal is that the revival had taken place and the assessee is now in the stream. The fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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