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2023 (2) TMI 204 - ITAT DELHIDeduction u/s 80-ID - income from subletting is shown as income derived from the business of hotel located in the specified area - mere approval is not sufficient as the conditions precedent laid down in sub-section (2) of section 80-ID are not satisfied. Accordingly, he treated the income as income from other sources - CIT-A allowed deduction - HELD THAT:- AO did not consider the fact that as per clause no.6 of the said agreement the business is to be run by the two parties in a coordinate manner and receive their respective share of income from the gross revenue of the hotel and allied services provided. CIT(A) has considered that the Revenue Sharing Agreement has some clauses of inclusion and exclusion of some of the revenues as contractually agreed between the parties for sharing of the income from the hotel which cannot be interpreted to mean that it is letting of property when it is based on the total revenue from the hotel and services. We agree with the finding of the CIT(A). Assessee has submitted report of Chartered Accountant in Form-10CCBBA certifying that the assessee satisfied all the conditions for claiming deduction under section 80-ID of the Act. No adverse comment in this regard has been made by the Ld. AO. We, therefore, uphold the finding of the Ld. CIT(A) that the income shown by the assessee is assessable as income from business and that the expenses claimed by the assessee thereagainst is an allowable deduction. It is also to be noted that the Revenue itself has accepted the claim of the assessee in AYs 2012-13 and 2014-15 - The facts remaining the same for the AY under consideration a different view is not tenable. Finding no substance in the appeal of the Revenue and no infirmity in the order of the Ld. CIT(A), we reject the Revenue’s appeal.
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