Case Law Details
ITO Vs. Berger Imp ex India (ITAT Delhi)- CIT (A) after considering all these submissions has observed that the assessee had started efforts and other activities for its trade though there is no purchase and sale during the initial period. The assessee had given employment to seven persons for marketing activities and has set up infrastructure for running the business at Chennai. The shop rent, electricity bill and telephone bills have been paid and on these facts it cannot be denied that the assessee had commenced the business. In the trade activity there is no preoperative period as the same is required in manufacturing activity and, thus, he has held that the assessee is entitled to have the benefit of carry forward of business loss and depreciation and directed the Assessing Officer to allow the loss claimed by the assessee.
On Appeal by Revenue against the Order of CIT (A) Honorable ITAT has held as under
We have carefully considered the submissions of the learned DR. We have also gone through the assessment order as well as the order passed by the CIT (A). The facts stated in the order of the CIT (A) are not controverted by the revenue. Learned CIT (A) has recorded a finding that the assessee had employed the staff for carrying out its activities. The assessee has also entered into lease agreement and is paying rent and other infrastructure has also been created for setting up of the business. A finding has been recorded by learned CIT (A) that the business of the assessee was set up. No contrary material has been brought on record to assail those findings of the learned CIT (A). Therefore, having regard to all these facts, we find no infirmity in the order of the CIT (A) vide which the dis allowance made by the Assessing Officer has been deleted. We decline to interfere.
INCOME TAX APPELLATE TRIBUNAL, DELHI
ITA No. 4019/Del/2010 – Assessment Year : 2007-08
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