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2009 (10) TMI 22 - HC - Income TaxExemption u/s 80HHD - The AO found that the assessee has claimed the deduction under Section 80 HHD on room rent also, which according to him, is not permissible under the said Section. He was of the view that under Section 80 HHD, only such deductions will be admissible which relate to the service provided to the foreign tourists – held that - If the room rent is excluded from the consideration for the purposes of Section 80HHD, the object of enactment of Section 80HHD would become meaningless and it will fail to achieve its purpose. - The ITAT has rightly reached to the conclusion that the provisions for amenity in the nature of rooms is an integral part of hotel business and if someone prefers to enjoy this amenity, then, he is said to have availed the services of nature as envisaged in the provisions of Section 80 HHD - the room rent charged by the hotel should also be taken into consideration for granting deduction under Section 80 HHD of the Income Tax Act, 1961
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