9911796707
TMI Blog2019 (3) TMI 1951X X X X Extracts X X X X X X X X Extracts X X X X ..... shows about the activities business. The payment was also made to Microsoft as License fee. The assessee incurred expenses upon the employees in the shape of Salary, Professional Fees, travelling for Work, Office Expenses, Telephone Expenses etc. w.e.f. January, 2012 onwards. The assessee has also entered into an Investment Management Agreement with IL FS on 1st February, 2012 and also applied for Credit Alpha Alternative Fund s as Venture Capital Fund with SEBI on 07.02.2012. All these facts speak about the initiation of the business. On appraisal of the order, we nowhere found that the additional evidence if any was admitted by CIT(A) without giving an opportunity of being heard to the AO in view of the provisions u/s 46A of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner of Income Tax (Appeals)-12, Mumbai [hereinafter referred to as the CIT(A) ] relevant to the assessment year 2012-13. 2. The revenue has raised the following grounds: - 1 On the facts and circumstances of case and in law, the Ld. CIT(A) admitted additional evidence without giving opportunity to the Assessing Officer under Rule 46A of Income Tax Rule . 2. On the facts and circumstances of case and in law, the Ld. CITA) erred in holding that the business of the assessee is commenced in January 2012 and that the expenses incurred by assessee are after commencement of business. 3. On the facts and circumstances of case and in law, the Ld. CIT(A) erred in deleting the addition of ₹ 1,10,10,025/- on account of business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er expense of ₹ 1,25,43,387/-. The assessee company has no revenue form business activity, therefore, notice was given and after the reply of the assessee, the claim of the loss was declined and the entire business loss in sum of ₹ 2,39,70,421/- was disallowed and added to the income of the assessee. Feeling aggrieved, the assessee filed an appeal before the CIT(A) who allowed the claim of the assessee, therefore, the revenue has filed the present appeal before us. ISSUE NO.1 to 5 4. Issue nos. 1 to 5 are inter-connected, therefore, are being taken up together for adjudication. Under these issues the revenue has challenged the allowance of the claim of the assessee in connection with the business loss without giving an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he work is completed. Similar is the case with computers. Majority of the computers were purchased in January when the business actually began and there are also payment of Microsoft License Fees in December which is a conclusive proof of commencement of business. All other expenses incurred like Salary, Professional Fees, Travelling for work, Office Expenses, Telephone expenses etc. were also consistently incurred from January 2012 onwards. The company is said to have commenced its business as and when the operations of the company start. The A.O. misinterpreted the meaning of pre- commencement expenses without taking into consideration the fact that the expenses namely professional fees, salary, travelling etc. are incurred only after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The payment was also made to Microsoft as License fee. The assessee incurred expenses upon the employees in the shape of Salary, Professional Fees, travelling for Work, Office Expenses, Telephone Expenses etc. w.e.f. January, 2012 onwards. The assessee has also entered into an Investment Management Agreement with IL FS on 1st February, 2012 and also applied for Credit Alpha Alternative Fund s as Venture Capital Fund with SEBI on 07.02.2012. All these facts speak about the initiation of the business. The CIT(A) has relied upon the decision of the Mumbai High Court in the case of Vegetable Products Ltd. Vs. CIT and ACIT 6(1), (26 ITR 151). On appraisal of the order, we nowhere found that the additional evidence if any was admitted by CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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