1978 (4) TMI 118

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....t in confirming a disallowance of Rs. 6,399.00 made by the ITO. 2. The assessee, an individual, started business in the name of Pharma Chem. Since no production was made during this year, the ITO did not allow the assessee's claim of loss of Rs. 6,399.00, which he claimed towards expenses. In his opinion "Since no business has been done during this year, no expenses are allowed." In appeal, the....

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....Sept., 1973. The assessee thereafter applied for drug licence on1st Oct., 1973. Thereafter correspondence went on with Drug Authorities and they wanted the assessee on 24th Oct., 1973 to file certain additional documents and ultimately the drug licence was issued to the assessee by the drug Authorities on 14th Dec., 1973 after due inspection by the Drug Controller. After obtaining the licence the ....

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.... placed reliance on the case reported in 90 ITR 322. 4. The Departmental Representative., on the other hand, has placed reliance on the orders of the authorities below and has submitted on the basis of the same that unless the goods were manufactured by the assessee, which admittedly was not done in this case in this year, the assessee could not claim the expenditure incurred by him. It was sub....

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....ed to it and which was unfortunately not available inIndiaand for which purpose he had to apply for import licence etc. It cannot, however, be said that even after that date the assessee's business has not commenced. The assessee could have started his business and produced the goods but for want of raw material, it could not do so. In our opinion, it would be fair and reasonable to reject the ass....