Allowing the appeal of the revenue the Court held that , there was no warrant for examination of documents or evidence as assessee admitted to have not commenced business. Accordingly there is no debatable issue hence rectification order disallowing the expenditure is held to be valid . ( AY.1997 -98)
CIT v. Parry Agro Industries Ltd. (2018) 256 Taxman 359 / 169 DTR 478 /305 CTR 1007(Ker) (HC)
S. 154 : Rectification of mistake -Business expenditure- Commencement of business- When the assessee admitted to have not commenced business there was no debatable issue – Disallowance of expenditure is held to be valid .[ S.37(1) ]