Case Law Details
Candor Kolkata One Hi-Tech Structures Pvt Ltd Vs ACIT (ITAT Delhi)
Introduction: The case of Candor Kolkata One Hi-Tech Structures Pvt Ltd Vs ACIT (ITAT Delhi) involves an appeal against the CIT (Appeals)’s order for the assessment year 2013-14. The appellant sought deductions under Section 80-IAB for car parking income, health club income, food court income, and interest income.
Detailed Analysis:
1. Brokerage Expense Disallowance: The AO disallowed brokerage expenses related to leasing SEZ premises, demanding evidence of agreements or documentation. The CIT (Appeals) upheld the disallowance. However, the ITAT, in a similar case within the group, favored the assessee, emphasizing the common practice of engaging brokers in the rental business.
2. Deduction under Section 80-IAB: The AO denied 80-IAB deduction on various incomes, including car parking, health club, food court, and interest. The CIT (Appeals) confirmed the disallowance. The appellant argued that these activities were linked to main activities covered by a government notification. The ITAT, in group cases, and referring to the Meghalaya Steels case, allowed the deductions, stating the issue was covered in favor of the assessee.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
