2016 (7) TMI 679

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....dhopadhyay, Adv. Mr. S. B. Saraf, Adv. ORDER The Court : The subject matter of challenge in the appeal is a judgment and order dated 6th August, 2010 by which the learned Income Tax Appellate Tribunal "B" Bench, Kolkata in ITA No.2015/Kol./2009 pertaining to the Assessment Year 2006-07 concurring with the CIT(A) held that "expenditure towards bank charges of Rs. 6,79,331/- related to the new....

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....m and Sons (Gujarat) Private Limited vs. Commissioner of Income-Tax, reported in [1994] 209 ITR 993 [Guj.]. He drew our attention to a passage quoted by the Gujarat High Court from the judgment in the case of Western India Vegetable Products Ltd. vs. C.I.T, which is as follows: "There is a clear distinction between a person commencing a business and a person setting up a business and for ....

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....ow the expenditure simply on the ground that the hotel was opened on 7th May, 2006, that is to say, after the end of the relevant previous year. That is no doubt true. But, it was for the assessee to adduce evidence to show as to when was the hotel set up. We have asked Mr. Sen to find out if there is any 3 evidence discussed in any of the three judgments to show that the hotel had been set up in ....

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.... acquisition of buildings, plant and machinery in a manufacturing business), the subsequent activities certainly constitute activities in the course of the carrying on of the assessee's business. It would not be correct, as rightly pointed out by the High Court, to treat the assessee as having commenced its business only when the licensee or lessee occupied the premises or started paying rent." ....