TaxTMI 
TaxTMI 
2023 (4) TMI 376
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.... disallowing the appellant's claim of expenses amounting to Rs. 37,56,360/- on assumptions and presumptions ignoring that the same were general and administration expenses which were required to be incurred even if there was no business activity during the year under consideration. 2. The Ld. CIT (A) - 59 has erred in law and in facts in disallowing depreciation of Rs 55,00,367/- on assumptions and presumptions basis ignoring the fact that no new asset was purchased and such depreciation was claimed on the assets acquired in earlier years which were used for the purpose of the business. 2. The facts in briefs are that assessee is a partnership form which was carrying on the business of "Manufacture and Export of Diamonds" fr....
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....ive expenses cannot be allowed, because there are no direct nexus expenses with the income own by the assessee. Accordingly, the disallowed the entire expenditure claims as well as the depreciation. 4. The Ld. CIT (A) too after noting down various judgments has confirmed the order of the Assessing Officer which are not been discussed here, because it is more on preposition of law and his interpretation of certain judgments. 5. Before the Ld. CIT(A), Assesses also filed various documents in form of additional evidence rule 46A in support of the expenses incurred during the year, which has been rejected by him. After detail discussion he held that expenditure cannot be allowed. Another finding given by him was that certain expenses, are....
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.... and it was mostly engaged in the export of such diamonds and jewelry. During the year there was no activity of purchase and sale of manufacturing which is evident from the financial statements. From the bare perusal of the nature of expenses, it can be seen that, these are general and administrative expenses which are incurred during the normal course of business. Merely because assessee did not have any business income during the year, that does not lead to any inference, that business has been completely shut down during the year, i.e., in the year under consideration. There is nothing on record that assessee had closed down the business completely and has wounded up during this year. There is a distinction between temporary suspension o....
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....har and Company. These payments were made for filling of several civil suits, before the Hon'ble Bombay High Court for recovery of amount from the creditors. He has also filed the copy of the suit and matters pending before the Hon'ble Bombay High Court to show that all the litigation expenses were on account of recovery of money. From perusal of these documents it is seen that the payments have been made by the assessee for the filling of various suit for recovery of money from the debtors like Fancy Impacts, Marble Gems, Asugems Sugey Gems which is still pending, and the suits were filed in 2012. Thus, this legal expenses cannot be disallowed as they have been incurred during carrying of the business. 10. However, before us the Ld. DR ....