Will the Temporary or even long inactivity not affect carrying on of business ?

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  1. Nikil Mohan

    Nikil Mohan Member

    As per Income tax Act, can the Temporary or even long inactivity not affect carrying on of business, if so please explain the legal provisions.
     
  2. Chandrashekar M

    Chandrashekar M Active Member

    Ordinarily, business implies continues activity in carrying on a particular trade or vocation but it may also include an activity which may be called quiescent. Thus, where an insurance company had issued fidelity guarantee bonds and even after the cancellation of its registration, because of the statutory provisions, the primary liability on the existing bonds continues to be that of the assessee company, to that extent it would amount to carrying on of business.
     
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