M/S. MULA PRAVARA ELECTRIC CO-OP SOCIETY LTD,,AHMEDNAGAR vs. ASSISTANT COMMISSIONER OF INCOME TAX,,

The only issue is to be decided as to whether the Commissioner of Income Tax (Appeals) is justified in confirming the addition made by the Assessing Officer on account of disallowance of business expenses by holding that the assessee discontinued its business and no such expenditure is allowable in the facts and circumstances of the case.

Heard both parties and perused the materials available on record. Shri Abhay Shastri, Ld. AR submitted that the issue raised in the grounds of appeal is covered by the order of this Tribunal for assessment year 2012-13, the same was placed on record, and there is no dispute by Shri Abhishek Meshram, Ld. DR in this regard. We find that the similar issue has been decided by this Tribunal in assessee’s own case for assessment year 2012-13 in ITA No. 1776/PUN/2016 vide its order dated 28-09-2018, which is placed on record. On perusal of the same, as we discussed above, the issue raised in the year under consideration is similar to the issue raised for assessment year 2012-13. This Tribunal did not agree with the contentions of respondent revenue i.e. the assessee is not entitled to claim business expenditure as the assessee has no intention to continue the business of power distribution and held all the administrative expenses is allowable as business expenditure. In view of the same, we hold that the assessee is entitled to claim all the expenditure including depreciation and consequential benefit of carry forward current year business loss. Thus, the order of Commissioner of Income Tax (Appeals) is not justified and it is set aside. Thus, ground Nos. 1 and 2 raised by the assessee are allowed.

In the result, the appeal of assessee is allowed.