Case Law Details
Menzies Aviation Bobba (Bangalore) Pvt. Ltd. Vs ACIT (ITAT Bangalore)
ITAT Bangalore held that rental income is inseparably connected with the business carried on by the assessee and emanate directly from the business of the undertaking. Accordingly, rental income derived by the assessee from Cargo Agents, Airlines, Banks etc., is derived from the cargo business and eligible for deduction u/s. 80IA. The addition is deleted.
Facts-
The case was selected for scrutiny under CASS and a notice u/s. 143(2) was duly served on the assessee. The AO disallowed a sum of Rs.36,68,95,134 claimed as a deduction u/s. 80IA while completing the assessment. Further the AO held that a sum of Rs.3,13,43,633 received as rental income by the assessee is liable to be taxed under the head ‘income from other sources’ and accordingly made an addition towards the same.
Aggrieved, the assessee filed appeal before the CIT(Appeals), who upheld the disallowances/additions. The assessee is in appeal before the Tribunal aggrieved by the order of the CIT(A).
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