Business Expense allowed Despite Nil Sales & Production: ITAT Kolkata

DCIT Vs Presidency Exports and Industries Ltd. (ITAT Kolkata) Material Facts The Revenue appealed against the CIT(A)’s order deleting the disallowance of business expenditure of ₹3,50,04,017 and the addition of ₹1,10,07,745 for AY 2018-19. The assessee, engaged in the export business, had reported nil business income but earned lease rental income of ₹1,57,25,350. The Assessing Officer treated the rental income as income from house property and disallowed business expenditure, holding that the absence of sales indicated cessation of business. Proceedings and Submissions Before the ...