Case Law Details
DCIT Vs PVP Ventures Ltd (ITAT Chennai)
It is to be noted here that the assessee is already into the real estate business through its subsidiaries and also has taken over and merged an entity BREAD who owns a large chunk of land in an extent of Ac.70. Such a large project takes time to materialize and it cannot be stated that the assessee has discontinued the business. Moreover, in the earlier ground, the assessee’ s receipts from Non Compete fee and Royalty were held to be Business Incomes under the provisions of S.28(va) and (iv). Further, the AO himself had accepted the pleas of the appellant to set off unabsorbed depreciation vide his order u/s. 154 dated 22.11.2009. Thus, it cannot be stated that the assessee has discontinued the business and it is incorrect to disallow business expenditure and current depreciation. Hence, the arguments of the AR are acceptable for the reasoning above and the incomes offered be treated as ‘business income’ and allow in full of business expenditure and current depreciation.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
The appeal by the Revenue in ITA No.1707/Chny/2014 is arising out of order of Commissioner of Income Tax (Appeals)-VI, Chennai in ITA No.444/10-11, vide order dated 26.04.2013. The assessment was framed by the ACIT, Company Circle VI(1), Chennai for the relevant assessment year 2006-07 u/s.143(3) of
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