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2019 (2) TMI 1712 - ITAT AHMEDABADDisallowance u/s 35AD(5)(aa) - Whether assessee had completed necessary formalities in terms of obtaining licenses from different authorities were obtained by the assessee? - CIT-A allowed the claim - HELD THAT:- As per provisions of section, any capital expenditure incurred by the assessee prior to commencement of operation of the new unit shall be allowed as deduction in the previous year in which the assessee commences the operation of hotel business. Sec. 35AD(5)(aa) is regarding deduction in respect of expenditure on specified business:- “on or after 1s t day of April, 2010, where the specified business is in the nature of building and operating a new hotel of Two Star or above category as classified by the Central Government.” In respect of its contention assessee submi ted copy of permission granted by the Ministry of Tourism letter dated 30/08/2010 wherein approval of three star hotel has been granted by the Ministry and assessee has filed Building House Permission issued by the municipal authority dated 18/10/2011 for granting the permission of hotel and assessee submitted details with the AO for following documents along with copies of assessee submitted letter dated 09/02/2015. CIT(A) in our view, has rightly come to the conclusion in favour of the assessee. Thus we dismiss the appeal of the Revenue.
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