Held that the hotel run by the assessee was not granted any star rating for the financial years relevant to the assessment years 2017-18 to 2019-20, and subsequent to the close of the assessment proceedings, the assessee got the four star rating certificate on December 14, 2021 valid for the period starting December 14, 2021 to December 13, 2026 which was furnished during the course of appellate proceedings before the Commissioner (Appeals). The hotel being run by the assessee has been duly granted a four star rating certificate by the Ministry of Tourism, Government of India and thus, it qualified as a specified business for the purposes of claim of deduction under section 35AD of the Act. Compliance with other conditions was not in dispute. The Assessing Officer is directed to allow the deduction as so claimed by the assessee under section 35AD of the Act. (AY.2017-18 to 2019-20)
Khanna Infrabuild P. Ltd. v. Dy. CIT (2024)113 ITR 595/231 TTJ 530 (Chd)(Trib)
S. 35AD : Deduction in respect of expenditure on specified business-Star rating-Granted four star rating by Ministry of Tourism after close of assessment proceedings-Certificate furnished during the appellate proceedings before Commissioner (Appeals)-Qualified as a specified business and eligible for deduction.
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