AO held that business of assessee was closed down due to non-renewal of license accordingly disallowed the expenditure. Assessee contended that handing over business to MSEDCL by MERC was a temporary phenomenon and assessee would resume business soon after license was renewed .Tribunal held that, ongoing litigation for grant of license ever since 2011 till 2018 demonstrated assessee’s strong intention to continue business . Decision of assessee of giving VRS to 1522 employees was a prudent commercial decision and same could not be interpreted against assessee as lack of intention to resume business. Assessee received compensation of Rs. 1 crore every month from MSEDCL and reported same to income tax office every year .Accordingly the  assessee could be said to have intention to resume its business, thus, expenditure claimed by assessee were allowable business expenditure. The set off of carry forward of the unabsorbed loss issue needs to be decided as per the provisions of section 70 to 72. Thus, the Assessing Officer is directed to pass a speaking order.( AY. 2012-13)