TaxTMI 
TaxTMI 
2013 (4) TMI 799
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....ed "no business activity" during the year, (b) further erred in not ordering for set off of such expenses against the income of Rs. 1 lac erroneously assessed u/s. 6, (c) and further erred in not ordering for carry forwarded of un-set off business loss. Addition u/s 68: 2.1. The Id. CIT(A) erred in not deleting addition of Rs. 1 lac made by the A.O. u/s 68 of Income Tax Act, 1961. 2.2. The I.D. CIT (A) erred in not appreciating the peculiar circumstances due to which the appellant could not produce before the A.O. the confirmation of the lender for the loan of Rs. 1 lac taken by the appellant. 2.3 The Id. CIT (A) ought to have either accepted the confirmation of the lender for loan of Rs. 1 lac taken by the app....
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....and held that when the business was not existence in the year under consideration the question of allowability of the expenses does not arise. Accordingly, the AO is disallowed the expenses debited to the profit and loss account. 3.2 On appeal, the CIT (A) has concurred with the view of the AO and accordingly rejected the claim however, 5% of the expenses were permitted as mandatory for day to day administrative and incidental expenses. 3.3 Before us, the Learned AR of the assessee has submitted that there is no permanent closer of the business of the assessee but the suspension of manufacturing activity due to the fact that the assessee company has under gone the rehabilitation scheme of BIFR and therefore, for a long time it remaine....
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....ia Iron & Steel Co. Ltd. [(211 ITR 370 (Del.)] (Business activity temporarily suspend) (5) CIT Vs. Anita Jain [(182 Taxman 173 (Del.) (Dormant Business) 3.5 On the other hand, the Learned DR had relied upon the order of authorities below and submitted that there is no dispute that since long time the assessee has not carried out any business activity therefore, there is no business in the year under consideration. He has further contended that even otherwise the expenses incurred by the assessee are capital in nature and therefore, cannot be allowed. 4. We have considered the rival submission as well as relevant material on record. We have carefully perused the details of the expenditure booked by the assessee in the profit a....
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....he year under consideration the assessee took loans from four different parties. The AO asked the assessee to furnish loan confirmation of all four parties giving therein Address and Pan. The assessee furnished loan confirmation in respect of three parties however loan confirmation in respect of loan taken from M/s. Mustafa Catering Services, Haderabad of Rs. 1 lac was not furnished. Thus, the AO made an addition of Rs. 1 lac u/s 68 of the Act for want of loan confirmation. 5.2 On appeal, the assessee filed loan confirmation before the CIT (A) however the CIT (A) declined to admit the fresh evidence. 5.3 Before us, Learned AR of the assessee has filed an application for admission of additional evidence which was rejected by the CIT (A....