“On perusal of profit and loss account, balance sheet annexed with the return of loss it transpired that as in the case of M/s Super Steels an associates concern, this concern has also reflected single sale of Rs.11,812/- and purchase of Rs.9,786/-. Besides this the assessee reflected interest of Rs.2926/- on advance, Rs.23,613/- from partners, interest on FDRs. 7499/- and sundry balances written back Rs.2,01,011/-. Inquiries made reveals tht assessee’s premises was lying closed and no business was being carried on. Admittedly the electric supply had been cut off in February 1992. when confronted the assessee submitted vide letter dated 3.7.1997 that the assessee is a registered partnership firm engaged in job work/trading of different types of wires and steel wire. The total turnover of the firm was Rs.11,812/- during the year under consideration as against earlier year sales of Rs.3,31,259/-. According to the assessee the ‘word’ business is very wide and each case is to be determined with reference to the particular kind of activity and occupation of the persons concerned. Though ordinarily business implies a continuous activity in carrying on a particular trade of a vocation it may also include activity which may be called “quiescent”, in terms of Supreme Court decision in the case of CIT v. Calcutta National Bank Limited 37 ITR 171. In view of this decision, the assessee pleaded that firm had carried on purchase and sale, made payment for job charges and earned income as shown in the profit and loss account, hence business activities are continued.
