Disallowance of business expenditure due to temporary discontinuation of business unsustainable

M/s. Mula Pravara Electric Co-op. Society Ltd. Vs DCIT (ITAT Pune) Conclusion – As intention of assessee to continue the business was clear, business expenditure including, depreciation as claimed by the assessee could not be disallowed due to temporary restrictions. Facts – Assessee is engaged in the business of distribution of electricity since 20 years, however, on expiry of licence on 31.01.2011, the licence was issued to MSEDCL and the assessee was ordered to handover the infrastructure and database of clientele of the assessee to MSEDCL. Notice was issued by AO proposing to treat the...