2009 (12) TMI 938

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....expenditure" 3. With the consent of learned counsel for the parties, we have heard the matter finally at this stage itself. 4. The appellant/assessee is a private limited company and is engaged in the business of manufacturing and sale of tents, cotton textiles, jute, flex, wool, silk, ready-made garments etc. As per the object clause in the Memorandum of Association, one of the objects is to deal in securities, stocks, shares as well. 5. In the assessment year in question the assessee had no trading activity. However, according to the assessee it had incurred expenses of Rs. 14,38,099/-. Out of these an amount of Rs. 8,00,000/- on account of write off of bad debts relating to the tent business which was not claimed as expenditure ....

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....ted as income from other sources, the assessee was entitled to deduction of the aforesaid expenditure as it could set off the same in terms of Section 71 of the Act. CIT (A) also did not go into this aspect specifically and rejected the appeal on the ground that there was no business activity and from this he jumped to the conclusion that there was no 'cessation of business'. Further, the appeal preferred by the assessee before the Income Tax Appellate Tribunal(ITAT) has met the same result. 7. After going through the impugned order passed by the ITAT, we observe that the contentions of the appellant are not appropriately dealt with by the Tribunal. There is no specific finding or observation of the Tribunal on the aspects highli....