ORIENT RESOURCES,CHENNAI vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, RANCHI, RANCHI

Smt. Rinku Singh, Ld CIT DR appeared for the revenue and Shri Smt. Rinku Singh, Ld CIT DR appeared for the revenue and Shri Smt. Rinku Singh, Ld CIT DR appeared for the revenue and Shri K.M. Mohan Dass, ld AR appeared for the assessee. ld AR appeared for the assessee.

It was submitted by ld AR that the assessee is in the business of extracting iron ore. It was the submission that the assessee has been in the business from AY 2007-08 onwards. It was the submission that during the assessment yea 2016-17, the mining license in respect of iron ore had been suspended by the Government. It was the submission that subsequently, the mining licenses have not been renewed till yet. It was the submission that the assessee is in litigation in regard to the suspension of the mining license owned by the assesse even till date. It was the submission that the assessee had been doing the mining during the AY 15-16. It was the submission that on account of suspension of mining license, the Assessing Officer had disallowed the assessee’s claim of expenses claimed under profit and loss account and also the depreciation claimed by holding that there was no business activity of the assessee. It was the submission that the assessee has kept its machinery and equipment ready for use and it was always in use till the licence was suspended. It was submitted that the expenses in relation to assessee’s business and the depreciation is liable to be allowed.

In reply, ld CIT DR submitted that the business of the assessee has stopped on account of suspension of mining licence. It was the submission that the business of the assesseehaving been stopped on account of suspension of mining license, the expenses and depreciation is not allowable to the assessee.