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TMI Blog2021 (3) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... in advances in the month of January and February, 2012. The sale deed was executed in the Financial Year 2012-13 and hence, it cannot be said that these expenditure were not incurred in F.Y. 2011 12. Even though assessee may not have full-fledged operations from the said factory, but if the factory was under the control of the assessee and certain stocks were lying, then electricity and security expenses cannot be held to be for non-business purpose, because during the year the factory premises was with the assessee. Accordingly, the security expenditure of ₹ 3,86,549/- and electricity expenses of ₹ 6,13,715/- which are duly supported by relevant bills and vouchers are allowed. Appeal of the assessee is allowed. - I.T.A. No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 10,00,264/- incurred on factory premises. The AO noted that the assessee had sold its factory premises (unit-2) on 07.05.2012 for a sum of ₹ 8 crores for which assessee had received advance in cheques from January, 2012 to May, 2012. Thus, when factory was sold out, which means that the assessee has not carried out any business, therefore, these expenses cannot be allowed as business expenditure. 3. Ld. CIT (A) has also confirmed the addition, holding that the assessee had already taken a decision to sell the factory for which it has also received certain advances in the relevant Financial Year 2011 12, therefore, the assessee was no longer the owner of the factory and could not have carried out any business activities from ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aim of expenses on the ground that the factory was sold on 07.05.2012 and assessee had received certain advances in the month of January and February, 2012. However, the sale deed was executed in the Financial Year 2012-13 and hence, it cannot be said that these expenditure were not incurred in F.Y. 2011 12. Even though assessee may not have full-fledged operations from the said factory, but if the factory was under the control of the assessee and certain stocks were lying, then electricity and security expenses cannot be held to be for non-business purpose, because during the year the factory premises was with the assessee. Accordingly, the security expenditure of ₹ 3,86,549/- and electricity expenses of ₹ 6,13,715/- which are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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