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2014 (2) TMI 739 - AT - Income TaxDisallowance of interest u/s 36(1)(iii) of the Act – Held that:- The decision in Plaza Hotels Pvt. Ltd. Versus JCIT (OSD), Range 8(2), Mumbai [2014 (1) TMI 1275 - ITAT MUMBAI] followed - there is no question of doubting that the it was not for the purpose of business - the entire interest paid by the assessee was for commercial purposes – matter remitted back to the AO for fresh adjudication. Taxability of Management fees received – Income from house property or business income – Held that:- The decision in CIT Vs. Mohiddin Hotels Pvt. Ltd. [2005 (9) TMI 46 - BOMBAY High CourT ] followed - the assessee has given hotel on lease for exploiting business asset and, therefore, the Tribunal was correct in holding that the income from leasing the hotel was income from business - the receipt from M/s KHIL on account of leasing the hotel was business receipt - There is no dispute that the assessee is owner of the hotel given on lease to M/s KHIL - All the licenses and permissions are in the name of assessee - This is also a fact that the assessee was running its hotel itself before giving to M/s KHIL – thus, the receipts received from KHIL are business receipt – Thus, the AO is directed to treat the business receipt against income from property – Decided in favour of Assessee.
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