TaxTMI 
TaxTMI 
2002 (2) TMI 329
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.... no business was carried on by branch oil mill during the year under consideration and the assets were not put to use. The AO relied upon the judgment in the case of CIT vs. Suhrid Geigy Ltd. (1981) 25 CTR (Guj) 280 : (1982) 133 ITR 884 (Guj). The CIT(A) held that no business was done in the branch office. Machinery was not used even for a single day. Therefore, the claim of depreciation was not allowed by him. 3. The learned authorised representative submitted that the learned CIT(A) erred is not considering the appellant's written submissions properly and not appreciating the fact that the machine was ready for use and could not be used for lack of orders. Due to amendment in Rajasthan ST Act, total sales-tax exemption had been given t....
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....t the depreciation was claimed through the commercial production was not yet connected. In the appellant's case, the commercial production has commencing long back, the oil mill was running in the immediately preceding year, i.e. asst. yr. 1990-91 and it also worked in the preceding year, i.e., asst. yr. 1992-93. It was only for the asst. yr. 1991-92 that the oil mill had not worked for the reason already mentioned. 5. It is well settled law that when there are decisions in favour of both the Revenue and the assessee, the one which is favourable to the assessee will prevail. 5.1. The learned Departmental Representative relied upon the orders of the authorities below. 6. We have considered the rival submissions. We have perused the ....
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....pecific reasons. Under these circumstances the AO and the CIT(A) held that the business expenses cannot be allowed as these expenses were not incurred for earning income because of stoppage of business. 8. The learned authorised representative submitted that the expenses had been incurred wholly and exclusively for the purpose of business. The details of expenses are as under: Rs. 1. Electricity : 70,266 2. Majoori : 18,802 3. Insurance : 14,711 4. Salary : 28,012 5. Bonus : 2,730 6. Interest : 1,31,040 It was submitted before the CIT(A) that the business of oil mill had not completely been stopped. The mill had worked in the succe....
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.... be retained for upkeep of machinery. It was also submitted that though the expenses incurred on salary of employees had been debited in the P&L a/c of oil mill but their services had been utilised in head office also. The expenses cannot be disallowed merely because the activity of oil mill branch is different from the activity of the head office. It does not imply that branch office and head office are separate business centres. The oil mill is only a branch and does not constitute a separate business. There is complete unity, interlacing and inter-dependence of management and financial aspects between head office and branch oil mill. There is one general manager who controls and administers both the head office and branch office. There i....