TaxTMI 
TaxTMI 
2016 (3) TMI 239
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....een raised in this appeal :- 1. That on the facts and in law or in the circumstances of the case, the ld. CIT has erred in assessing the income of the appellant of Rs. 4,77,610/- instead of NIL income. As such aggregate addition of Rs. 4,77,610/- may please be deleted. 2. That the ld. CIT has wrongly sustained the disallowance of writing off of advance license DEPB License, DFRC License on the basis of discontinuation of business. 3. That the ld. CIT has not considered the evidence for continuance of business that is VAT return showing NIL income and the legal precedents which reiterate that temporary cessation of the activity due to adverse conditions cannot be considered as cessation of the business. 4.....
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....sessing Officer was of the view that interest income is taxable under the head income from other sources and as the assessee has discontinued its business in the preceding financial year then the assessee is not eligible to claim set off of custom duty expenses of Rs. 2,92,510/- against income from other sources and accordingly disallowed the claim of set off made by the assessee. 4. Aggrieved, assessee went in appeal before CIT(A) who confirmed the addition made by Assessing Officer by observing as under :- "3.3 Decision I have carefully considered the facts of the case, the assessment order and the written submission of the appellant. The appellant had claimed deduction from income on account of utilized duty payment ....
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....o we proceed to dispose of the appeal on the basis of submissions made by ld. DR and perusing the material available on record. The ld. DR submitted that the assessee himself has categorically submitted before the lower authorities that it has stopped its business activities during Financial Year 2006-07 and the unutilized import license which has lapsed due to lapse of date of validity and the same has been written off in the profit and loss account and this write off of expenditure of Rs. 2,92,510/- has been claimed for set off against income from other sources and the lower authorities have rightly disallowed the claim of set off and, therefore, the appeal of assessee should be dismissed. 6. After considering the submissions of ld. DR....
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....on from the market and any new licence not received from the FY 2006-07 onwards so licence cannot be utilized and the licence expire or lapse and whatever benefit receivable is cannot be received assessee company has no any other option other than written off. The company is in trading business and whenever there is an opportunity the company has availed of the same and has done the business. However, for the year under consideration there was no transaction of sale and purchase. However, the company had not closed down the business and was constantly striving in the competitive scenario to sustain and obtain business opportunities." 8. From the above submissions made by the assessee before the lower authorities it is very clear....