TaxTMI 
TaxTMI 
2022 (11) TMI 366
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....n of the learned CIT(A) in confirming the disallowance of expenses claimed by the assessee on the ground that the assessee has not carried on any business activity during these years. In AY 2008-09, the assessee is aggrieved by the decision of Ld CIT(A) in upholding assessment of interest income under the head Income from other sources rejecting the claim of the assessee to assess the same under the head Income from business. 3. The facts relating to the case are that the assessee was carrying on business of broking and trading in shares and securities. The assessee was a member of National Stock Exchange of India limited (NSE) and Bombay Stock Exchange India Limited (BSE). The assessee belongs to the group of Shri Ketan Parekh. The SEBI c....
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....n existence till such date and any expenses are allowable as deduction till such date. Since the AO had not examined the said aspect, it has become imperative to examine the question of allowability of various expenses incurred by the assessee till 18-05-2007, in the context of conduct of any business by assessee till such date. It is a question of fact whether or not the business was carried out till 18-05-2007 and it so various expenses if incurred by the assessee is allowable as deduction and also the question of depreciation and interest relating to the particular period. We therefore, set aside the impugned order and remand the matter to AO to examine the above matter of fact to reach a right conclusion on the issue of liability of the....
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.... consultancy have not been suspended by SEBI. Accordingly, he submitted that it cannot be said that the business activities of the assessee has completely banned as presumed by the tax authorities. He submitted that the trading stocks of the assessee were attached by the Government authorities and hence it cannot carry on trading activities. Further, the assessee has been facing various legal cases and hence most of the time has gone into managing those legal cases. Accordingly, the Ld A.R submitted that non-carrying on of business activities can be considered as a "temporary lull" in the business activities of the assessee and it cannot be considered as a case of stoppage of business altogether. Accordingly, he contended that various expen....
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....assessee have been barred. He submitted that the co-ordinate bench has not given a decision that the expenses incurred after 18-05-2007 are not allowable. It has only observed that "at the most it can be said that no expenses can be allowed from that year". 9. I have heard rival contentions and perused the record. It is the submission of the assessee that it is carrying on different types of activities, viz., share broking, merchant banking, share trading and consultancy. It is the contention that the SEBI has barred only share broking and merchant banking activity, i.e., it is the claim of the assessee that the activities relating to share trading and consultancy have not been barred. However, on a perusal of the financial statements, I n....
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....curred in order to maintain the corporate status, legal expenses and other necessary expenses which are required to be incurred invariably to run the company should be allowed as deduction in the hands of the assessee. Accordingly, I modify the order passed by Ld CIT(A) on this issue and direct the AO to allow all expenses incurred to maintain corporate status, legal expenses and other necessary expense which are required to be incurred invariably in order to run the company. The assessing officer may decide the quantum of expenses after affording opportunity to the assessee. 11. With regard to the issue of the head of income under which the interest income is assessable, I restore this issue to the file of AO, since the AO has not made an....