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2016 (3) TMI 369 - AT - Income TaxEntitlement to deduction u/s. 80IB(7)(a) - Held that:- Section 80IB(7)(a) states that 50% of the profits and gains derived from the business of such Hotel. In this context also, it can be stated that the term 'profits and gains derived from the business of such hotel' has wider meaning than the term 'profits and gains derived from an undertaking'. We have mentioned in the earlier paragraphs with reference to the ICAI audit guidelines that these are receipts directly on account of running of the Hotel business and it is not incidental/ancillary income and, therefore, these receipts though termed as "other income" is entitled to the benefit of deduction u/s. 80IB of the Act. Hence, the grounds of the assessee are allowed for the assessment year 2007-08. Similarly, in respect of 'other income' for AY's 2008-09 and 2010-11, except for interest income and interest on refund, the 'other income' enumerated above is entitled to the benefit of deduction u/s. 80IB(7)(a). Therefore, our findings and conclusions for the assessment year 2007-08 will hold good for the assessment year 2008-09 and 2010-11. - Decided in favour of assessee
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