2016 (3) TMI 684

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.... Judgment was delivered by V. Ramasubramanian,J This tax case appeal, under Section 260A of the Income Tax Act, 1961, is by the assessee. 2. The above appeal was admitted on 12.11.2007 on the following substantial questions of law : "(i) Whether in the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in upholding the order of the Commissioner of Income Ta....

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....ounting period ended 31.3.1998. Therefore, the assessee leased out substantial portion of the premises to an infrastructure development company and claimed depreciation on that portion of the building. 5. In the return for the assessment year 2001-02, the appellant claimed a business loss of Rs. 1,27,95,073/-, setting it off with the income from house property thereby claiming a net loss of Rs.....

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....continued and that there was no sale effected by the appellant as claimed. The Commissioner consequently held that the business loss claimed by the appellant should be disregarded and not to be set off and that the business loss brought forward by the appellant should not be allowed to be set off. The appellant unsuccessfully filed an appeal before the Tribunal and thereafter, came up with the abo....

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....ng Officer that the assessee did not carry on business during the year under consideration. 10. Once, on facts, it is found by the Assessing Officer and by the Commissioner that the assessee did not carry on business during the year under consideration, then it follows as a corollary that the assessee could not have claimed expenses under the heading 'business expenditure'. The error co....