1982 (10) TMI 69

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..... e assessee. 2. From the order of the Income Tax Officer (hereinafter referred to as ITO), it is seen that the assessee filed the return declaring a loss of Rs. 23,622. The ITO noticed that the assessee has not commenced any business during the year under consideration and that by its letter dt. 31st March, 1979, the assessee informed the ITO that the firm did not start any construction work dur .....

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..... erest on investment of the funds. The CIT(A) found that the submission made on behalf of the assessee was correct. He noticed from the balance sheet that the capital of the partners was at Rs. 1,04,142 and the loan payable was Rs. 4,45,997. He noticed further that the assets side included leasehold land and building valued at Rs. 4,38,000 and the loan receivable at Rs. 2,08,907 etc. He also observ .....

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..... , corporation taxes, earning or paying interest, etc., do not by themselves constitute business activities. Briefly speaking, it is urged that the CIT(A) without verifying the records or the facts of the case, has simply accepted the submissions made before him and, therefore, his order requires to be reversed and that of the ITO should be restored. 5. On behalf of the assessee, however, the ld .....

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