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2018 (12) TMI 1453 - AT - Income TaxDisallowance of Guest House Expenses - only expenditure which the assessee is agitating is on account of telephone, electricity & other expenses for Somerset place Co-operative Society Ltd. and Antariksha Housing Complex - Held that:- The expenditure in respect of telephone, electricity etc. associated with the guest house stand on the same footing as the expenditure towards rent, repairs and maintenance of the guest house. Thus, we do not find any merit in the submissions of assessee in creating distinction between the expenditure on maintenance and telephone, electricity charges in respect of guest house. Accordingly, ground No. 1 raised in the appeal is dismissed. Eligibility of compensation towards sale price of cable for claiming deduction u/s. 80IA - Held that:- A perusal of the terms of the agreement reveal that the interest paid by DOT is imbedded in equated quarterly installments. Thus, the interest received by the assessee towards the compensation for deferred payments for supply of cables to the DOT has direct nexus with the business of the assessee. Thus, it can be safely construed that the compensation received for deferred payments is "derived" from the business activities of the undertaking. Therefore, we are of considered view that the assessee is eligible to claim deduction u/s. 80IA on such interest/compensation component of the deferred payments. - Decided in favour of assessee.
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