TaxTMI 
TaxTMI 
2019 (3) TMI 1951
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....Ld. CIT(A) admitted additional evidence without giving opportunity to the Assessing Officer under Rule 46A of Income Tax Rule". 2. On the facts and circumstances of case and in law, the Ld. CITA) erred in holding that the business of the assessee is commenced in January 2012 and that the expenses incurred by assessee are after commencement of business." 3. "On the facts and circumstances of case and in law, the Ld. CIT(A) erred in deleting the addition of Rs. 1,10,10,025/- on account of business expenses and Rs. 2,06,1011- on account of unabsorbed depreciation without giving - an opportunity to the Assessing Officer to examine the additional evidence." 4. "On the facts and circumstances of case and in law, the Ld. CIT(A) erred in hold....
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....the income of the assessee. Feeling aggrieved, the assessee filed an appeal before the CIT(A) who allowed the claim of the assessee, therefore, the revenue has filed the present appeal before us. ISSUE NO.1 to 5 4. Issue nos. 1 to 5 are inter-connected, therefore, are being taken up together for adjudication. Under these issues the revenue has challenged the allowance of the claim of the assessee in connection with the business loss without giving an opportunity of being heard to the assessee in view of the provisions u/s 46A of the I.T. Act, 1961 and wrongly assessing the commencement of the business of the assessee by which the claim of the assessee was allowed. Before going further, we deemed it necessary to advert the finding of the C....
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....ke Salary, Professional Fees, Travelling for work, Office Expenses, Telephone expenses etc. were also consistently incurred from January 2012 onwards. The company is said to have commenced its business as and when the operations of the company start. The A.O. misinterpreted the meaning of pre- commencement expenses without taking into consideration the fact that the expenses namely professional fees, salary, travelling etc. are incurred only after a business has commenced. The incurring of the above expenses is conclusive evidence of the business operations being started. The appellant has entered into an Investment management agreement with IL & FS on 1st February 2012 and had applied for Credit Alpha Alternative Funds' as Venture Ca....
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....nt Agreement with IL &FS on 1st February, 2012 and also applied for Credit Alpha Alternative Fund's as Venture Capital Fund with SEBI on 07.02.2012. All these facts speak about the initiation of the business. The CIT(A) has relied upon the decision of the Mumbai High Court in the case of Vegetable Products Ltd. Vs. CIT and ACIT 6(1), (26 ITR 151). On appraisal of the order, we nowhere found that the additional evidence if any was admitted by CIT(A) without giving an opportunity of being heard to the AO in view of the provisions u/s 46A of the Act. The documents which has been considered by the CIT(A) were already on record which were not considered by the AO. Nothing came into noticed that the new documents were considered by the CIT(A) whi....