AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2016 (6) TMI 88
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....1961 (herein after referred to as 'the Act'). 2. The assessee has raised the following grounds:- ''2. The learned CIT(A) has failed to appreciate that the work ''business'' is one of wide import and in fiscal statutes, it must be construed in a broad sense rather than a restricted sense. 3. The learned CIT(A) failed to appreciate the fact that where the tax payer is engaged in real estate activity, the business can be considered to be set up when the primary activity, ie. acquisition of land takes place and the subsequent business expenditure incurred from thereon is to be allowed as revenue expenditure. 3. The Brief facts of the case that the Assessee is a Company engaged in the business of developing and leasing of....
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....gs of the Assessing Officer on the claim of interest on deposits set off against the expenditure and the assessee contention being set up of commercial business operations. The ld. Authorised Representative substantiated arguments and filed submissions and supported the facts with judicial decisions. The ld. Commissioner of Income Tax (Appeals) considered the written submissions and factual observations of Assessing Officer and is of the opinion that purchase of land by the assessee company for construction of I.T. Parks cannot be termed as commencement of business and exhaustively discussed at para 4.2 of the order as under:- ''4.2 I have carefully considered the facts of the case and the submissions of the Id.AR. The Id.AR argues....
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....essing Officer. Therefore, I do not want to interfere in the decision taken by the Assessing Officer. The ground is dismissed''. and dismissed the appeal of the assessee. Aggrieved by the order of Commissioner of Income Tax (Appeals), the assessee assailed an appeal before Tribunal. 5. Before us, the ld. Authorised Representative reiterated the submissions of assessment and appellate proceedings on the issue of definition of commencement of business in broader sense and applicability. The ld. Commissioner of Income Tax (Appeals) has erred in not appreciating the facts that assessee is engaged in real estate activity and the business is presumed as commenced on acquisition of land and any expenditure incurred during the said period is ....
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....ns cited. The ld. Authorised Representative basic contention that the business of the assessee was setup on acquisition of land and claimed expenditure in profit and loss account due to commencing business operations during the year and the ld. Authorised Representative drew our attention to the annual report of the company and referred to schedule of profit and loss account were the assessee has offered income in the profit and loss account and claimed expenditure. Further offered the net loss as per return of income. The decisions relied by the assessee on acquisition of land is deemed as business been set up but the assessee company was incorporated on 03.11.2003 which falls in the financial year 2003-2004 relevant to assessment year 200....
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....reatment by the assessee company and the definition of the business were the company has suo-motu capitalized expenses Rs. 2,74,97,341/- to the date of establishing and completion of IT parks and characteristic of expenditure remain on par with pre-operative expenditure. The Assessing Officer relied on Supreme Court decision of Tuticorin Alkali Chemicals and Fertiliser Limited (supra) were it was held that interest on bank deposits received before commencement of operations of the business should be offered separately as income from other sources. The assessee has acquired the property and also invested in bank deposits further yet to commence its business operations and freehold land was disclosed in schedule of fixed assets as at 31.03.20....