2021 (12) TMI 1197

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hether the business loss claim amount liable or not? 3. In the assessment order, the Assessing Officer (AO) has noted that while pursuing statement of income, the assessee-company has claimed under the loss of Rs. 26,59,169/- as per the profit and loss account for the Financial Year 2012-13. The Assessing Officer (AO) has asked the assessee to explain why the loss has to be allowed when there was no sales and purchase. The ld. counsel for the assessee has submitted that Financial Year 2012-13, the assessee company has paid advance for the purchase of raw material. The A.O has considered the same and observed that there was no business performed, the claim of loss claimed by the assessee is disallowed. On appeal before the Ld. CIT(A), it ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... relied on the judgment of the Hon'ble Delhi High Court of in the case of CIT v. LG Electronic (India) Ltd. [2006] 282 ITR 545 (Del.) and submitted that the loss claimed by the assessee is allowed. 6. On the other hand, the ld. Departmental Representative has strongly supported the orders passed by the authorities below. 7. Both the parties have been heard, perused the material available on record and gone through the orders of the authorities below. 8. The assessee is engaged in the business of engineering industry and claimed the business loss of Rs. 26,59,169/- for the year under consideration. The case of the assessee is that the assessee-company is ready for the commencement of the business and placed the order for raw materia....