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2020 (8) TMI 757 - AT - Income TaxEligibility of deduction u/s 80ID - five year tax holiday to new hotels of two, three and four star categories and convention centers - AO has established that existing hotel building which was first given on rent for hotel business and then it was sold to the assessee thus the assessee had wrongly claimed deduction u/s 80ID - whether assessee commenced already established business by way of transfer to a new business of a building previously used as a hotel? - HELD THAT:- Construction of the Hotel Rai Mahal was prior to April, 2008 and the earlier Hotel Rani Mahal was functioning till 04.10.2008. The business (Hotel SIRIS 18 AGRA) is formed by the leased agreement between the assessee and Bharti Sehgal which was thereafter sold by Bharti Sehgal to the assessee 08.06.2009. The assessee claimed the deduction from A.Y. 2009-10 till 2012-13. The assessee thus has commenced already established business by way of transfer to a new business of a building previously used as a hotel. The case laws submitted by the assessee are not on the issue of Section 80ID eligibility as the conditions/criteria are different in Section 80IA, 80IB deductions. The case laws are on different factual aspects and hence not applicable in the present case. CIT(A) also reiterated the same facts and correctly confirmed the Assessment order. There is no need to interfere with the observations made by the CIT(A) as the CIT(A) has given a detail finding after going through the facts and applying the provisions of Section 80ID of the Act, in assessee’s case for non-eligibility of the deduction. Thus, appeal of the assessee is dismissed.
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