TaxTMI 
TaxTMI 
2019 (1) TMI 474
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....ing counsel for the Revenue, relying upon the assessment order, submits that the respondent-assessee was not engaged in any business activity as no business had been set up or had commenced during the assessment year in question. There were no fixed assets, no receipts and expenses relatable to main objects as per Memorandum of Association. 3. Respondent-assessee had filed return declaring loss of Rs. 7.06 crores for the Assessment Year 2008-2009. 4. The assessment order in paragraph 4.2 refers to the letter and explanation given by the respondent-assessee stating that it was established with the main object to promote, undertake, carry on, acquire the business of setting up/providing operating/running of call centres and infrastructu....
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.... refining, preserving, dehydrating, freezing, packing and repacking of all kinds and every description of fruits & vegetables, floriculture, horticulture and all other agriculture produce. XXX 4. To promote, establish, undertake, carry on, invest in, acquire either on its own or by entering into agreements, contracts, partnership, alliance or any other arrangement for technical, financial and operational assistance, for sharing of profits/losses with any person/body/ bodies corporate incorporated in India or abroad either under a strategic alliance or joint venture or any other arrangement, the business of creating a pool/reservoir of technical, administrative, managerial persons, consultants, advisors of varying qualifications, exper....
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....f insurance or assurance or any contract of indemnity against loss of human life, dependant on human life or any assets and generally to carry on and transact any and every kind of insurance, which may legally be carried on or transacted, including that which is not comprised in any of the above descriptions of business. 5. We have quoted from the relevant Memorandum of Association as the letter of the respondent-assessee dated 24.11.2010 had referred to the said Memorandum of Association, copy of which had been furnished to the Assessing Officer. 6. In the aforesaid circumstances, the disallowance of the entire business expenditure of Rs. 52,573,792/- was set aside by the Commissioner of Income Tax (Appeals) accepting the respondent-....
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....ture. Placing reliance on the decision of Hon'ble Supreme Court in S.A. Builders Ltd. 288 ITR 1 the appellant has further argued that the investment made by the company was for the purposes of the business and therefore the expenses incurred thereon have to be allowed as a deduction. In this connection the appellant has referred to Schedule-3 of the Balance Sheet which shows that investments were made in Teletech Services India Ltd. which is in the business of call centre and rendering services through telecom network. Further that investments in Bharti Resources Ltd. is in terms of object no.4 of the Memorandum of Association and investment made in First American Securities is in terms of object no.9 of the Memorandum of Association. ....