https://www.taxtmi.com/caselaws?id=197036 Absence of a valid liquor licence under the State excise law prevented the assessee from lawfully carrying on wholesale liquor business, so the inactivity was treated as a legal discontinuance rather than a temporary lull. On that basis, depreciation under section 32 was not allowable because the assets were not used for business, and business expenditure under section 37(1) failed because it was not incurred wholly and exclusively for a lawful business operation. The claimed stock transfers at cost and the absence of purchases or sales reinforced the finding that no genuine business activity was carried on during the year. en-us Mon, 04 Apr 2016 00:00:00 +0530 Fri, 22 Dec 2017 17:17:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=197036 Absence of a valid liquor licence under the State excise law prevented the assessee from lawfully carrying on wholesale liquor business, so the inactivity was treated as a legal discontinuance rather than a temporary lull. On that basis, depreciation under section 32 was not allowable because the assets were not used for business, and business expenditure under section 37(1) failed because it was not incurred wholly and exclusively for a lawful business operation. The claimed stock transfers at cost and the absence of purchases or sales reinforced the finding that no genuine business activity was carried on during the year. Case-Laws Income Tax Mon, 04 Apr 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=197036