Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (8) TMI 914 - AT - Income TaxDisallowing the expenses u/s 37(1) - After obtaining the Certificate of Commencement, the assessee company had taken several steps in connection with the setting up of a five star hotel - taxability of interest income derived from Fixed Deposits (FDs) and mutual funds under the head of ‘other sources’ Held that:- we find more merit in the assessee’s alternative plea for netting off the interest income against pre-operative expenses. On this alternative plea, we hold that the AO should have netted off the interest income against pre-operative expenses incurred by the assessee in connection with its setting up of the hotel project and the AO is directed to re-compute the assessee’s total income accordingly. Since we have allowed the assessee’s appeal on the alternate plea raised in the course of appeal, we do not express our opinion on the question as to whether the assessee’s business was set-up or not and whether expenses incurred during the relevant year were permissible to be deducted as revenue expenditure. Decided in favor of assessee.
|