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2011 (9) TMI 212 - HC - Income TaxGoing Concern - Expenditure subsequent to closure of business - Hotel business - Expenditure towards renovation expenses, post operative rent and post, operative interest. - Held that:- the assessee was carrying on hotel business. Due to labour problem he stopped the business. He wanted to sell the business as a going concern. Even though he had stopped his business, the liability to pay rent and interest continued. It was not a personal liability of the assessee. Both interest was payable on the amount borrowed for carrying on the business and rent was payable for the business premisses. Therefore, the appellate authorities were justified in allowing the said deduction.
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