9911796707
TMI Blog2022 (12) TMI 931X X X X Extracts X X X X X X X X Extracts X X X X ..... tified in confirming the order of AO in determining the income of the assessee at Rs.6,49,12,471/- as against Nil income. 3. We note that according to the AO the assessee is a Co-operative Society (AOP) and derives income from rent and other income. Further, the assessee filed return of income declaring a total current year income at Rs.42,96,82,992/- but however shown total income at Nil after claiming set off of brought forward losses. Under scrutiny, notices u/s. 143(2) and 142(1) of the Act were issued to the assessee and in response to the said notices, the assessee filed details on points emerged for consideration. Further, he observed in para 3.1 of the assessment order that the assessee has shown rent income at Rs.5,73,565/- agains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... including electrical system, sub-stations, overhead lines, service lines, office and associated facilities like lands, building, works, material, stores and plants in the area of its operation vide its order dated 27-01-2011 to Maharashtra State Electricity Distribution Company Ltd. (MSEDCL). He held, that no business as existed from 31-01-2011 to the assessee in respect of distribution of electricity. Further, he observed the assessee could not produce any evidence to prove the restoration of renewal of license for distribution of electricity. Further, he observed the assessee was received the user charges for the use of its assets which were handed over by the assessee to the MSEDCL. He confirmed the order of AO in assessing the rental i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were shown before the CIT(A) as the assessee has every chance in continuing its business operations. Further, we note that the CIT(A) clearly held that the assessee is not entitled to claim depreciation, establishment and general expenses and interest on loan as the assessee handed over electricity distribution and power system including all electrical system, sub-stations, overhead lines, service lines, office and associated facilities like lands, building, works, material, stores and plants in the area of its operation to MSEDCL w.e.f. 01-02-2011 which means the assessee has no business existed as on the end of F.Y. 2011 itself. The only contention has been made from 2011 to the year under consideration i.e. 2015-16, even before us, that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant here also referred to the decision of the Vikram Cotton Mills Ltd. of the Hon'ble Supreme Court emphasizing upon the intention of the appellant for continuing the business. Various other decisions were also cited in this regard, relying on the said "intention" of the appellant. For the identical reasons as discussed while adjudicating Ground Nos. 1 to 4, I hold that mere intention of the appellant could not be the ground for allowing the depreciation on assets claimed by the appellant, as there was no existence of the business which was established by the AO to have been permanently closed and hence such depreciation was not allowable u/s. 32(1) of the Act. Further, for the identical reasons, the Establishment and General Expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... forward and set off of depreciation / business loss in the case of the appellant. No interference in AO's order on all the above matters is called for. The disallowance and addition made of Rs.4,63,50,607/- and on account of general expenses of Rs. 66,59,690/-, totaling to Rs. 5,30,10,297/- is therefore confirmed. Ground Nos. 5 & 6 raised by the appellant are accordingly dismissed." 6. In the light of the reasons recorded by the CIT(A) along with our discussion made here-in-above, we totally agree with the finding of CIT(A) in confirming the order of AO in denying deduction claimed by the assessee. Therefore, we do not find any infirmity in the order of CIT(A) and it is justified. Thus, the grounds raised by the assessee are dismisse ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
