9911796707
TMI Blog2022 (12) TMI 1158X X X X Extracts X X X X X X X X Extracts X X X X ..... is engaged in the business of trading of Programmable Logic Controllers (PLC) and parts thereof. The return of income for the assessment year 2014-15 was filed on 30.09.2014 declaring total income of Rs.27,83,430/-. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-14(4), Pune ('the Assessing Officer') vide order dated 29.11.2016 passed u/s 143(3) of the Income Tax Act, 1961 ('the Act') at a total income of Rs.2,21,92,970/-. The disparity between the retuned income and assessed income is on account of not allowing the business loss incurred on account of expenditure incurred from the date of set-off of the business against the interest income earned on the deposits made out of the funds lying wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es incurred during the intervening period between setting up and actual business should be allowed as deduction placing reliance on the following plethora of judicial precedents :- (i) Carefour WC & C. India (P.) Ltd. vs. DICT, 53 taxmann.com 289 (Delhi). (ii) CIT vs. Dhoomketu Builders & Developments (P.) Ltd., 34 taxmann.com 18 (Delhi). (iii) Maruti Insurance Broking (P) Ltd. vs. DCIT, 127 taxmann.com 685 (Delhi). (iv) Ashoke Marketing Ltd. vs. CIT, 73 Taxman 126 (Cal.). 6. On the other hand, ld. Sr. DR placing reliance on the order of the ld. CIT(A) submits that no interference is called for. 7. We heard the rival submissions and perused the material on record. The issue that arises before us for our consideration is as to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... well as the ld. CIT(A) simply discussed the legal principle without adverting to the material facts on record and had not really decided whether the appellant company had set-up of business and ready to commence the business or not. On perusal of the Profit & Loss Account placed at Paper Book indicates that certain expenditure was incurred in connection with business which was sold were also debited to the Profit & Loss Account. Therefore, the Assessing Officer as well as the ld. CIT(A) had failed to examine the nexus of the expenditure incurred and the new business stated to have been set-up. In these circumstances, we are of the considered opinion that the matter requires remission to the file of the Assessing Officer to decide the issu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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