2021 (3) TMI 991

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....Godara , JM This Revenue's appeal for the Asst. Year 2013-14 arises from the Commissioner of Income Tax (Appeals)-4, Hyderabad order dt. 31.01.2019 passed in the case of Appeal No. 4/0108/17-18/ACIT C16(1), Hyd/CIT(A)/Hyd/18-19 in the proceedings under Section 143(3) of Income Tax Act, 1961 ('the Act'). Case called twice. None appeared at assessee's behest. It is accordingly ....

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....,925/- amounts towards expenses and Rs. 96,36,547/- towards the depreciation of the Act). During the course of scrutiny proceeding, the same was disallowed by the A.O. citing the reason that the appellant has not commenced its business activities as no receipts/invoices has been raised by the appellant, hence AO is of the view that expenditure claimed deserved to be disallowed. On the other hand t....

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....pt which does not prevent the appellant form claiming the expenditure debited to P&L a/c. As per appellant has incurred expenditure that is required for carrying out the business, that amounts to establishment/set up of business. Therefore, Assessing Officer is not justified in stating that the appellant has not commenced its business. As there is a clear distinction between a person commencing a ....

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....ed view, the action of the Assessing Officer is not justified and hence, directed to allow the expenditure of Rs. 3,55,44,472 claimed by the appellant. As a result, the grounds raised in this regard are allowed." 3. Ld. departmental representative vehemently contended that the Assessing Officer had rightly disallowed the assessee's foregoing twin claims (supra) for the reason that it had no....