The assessee claimed deduction under section 80-ID for AY. 2012-13 in respect of hotel SIRIS 18, at Agra. The Assessing Officer found that the hotel property had originally been developed and operated earlier in the name \u201cRani Mahal\u201d by the previous owners; the assessee had first operated the same hotel on lease during FY 2008-09 and thereafter purchased it on June 8, 2009 along with furniture and fixtures on \u201cas is where is\u201d basis. The record further showed that only nominal additions were made to building, computers and kitchen equipment, and there was no substantial investment indicating establishment of a new hotel. The Ministry of Tourism approval for the renamed hotel SIRIS 18, was obtained subsequently. The Assessing Officer held that the assessee had merely continued the existing hotel business under a new name and was not entitled to deduction under section 80-ID. The Commissioner (Appeals) and the Tribunal affirmed the disallowance. On appeal, the High Court held that the concurrent factual findings clearly established that the hotel was already in existence and functioning prior to the assessee\u2019s claim, and the assessee had failed to show that those findings were perverse. On appeal the Court held that since the business was only a continuation\/transfer of an existing hotel and not a newly established eligible undertaking, deduction under section 80-ID was rightly denied. SLP dismissed. (AY. 2012-13)<\/p>\n
\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 80-ID : Hotels and convention centres in specified area-Existing hotel taken on lease and later purchased-Only nominal additions to fixed assets-Business continued under new name-Assessee failed to prove setting up of a new eligible hotel-Denial of deduction affirmed by High Court-SLP dismissed. [Art. 136]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-59721","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fxf","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59721","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=59721"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59721\/revisions"}],"predecessor-version":[{"id":59722,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59721\/revisions\/59722"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=59721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=59721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=59721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}