Section 36 deduction permitted if expenditure is not for extension of business activity

CIT Vs Ceebros Hotels P Ltd. (Madras High Court) Conclusion:  In the said case, the Hon’ble High Court rejected appeal of Revenue and have observed that deduction under Section 36 would be available to the assesse as the business undertaken by the assesse could not be termed as extension of its business. Facts: In present facts of the case, the assessee was running a Hotel and Real Estate business. For the Assessment Year 2015-16, the assessee had offered income from the Real Estate in respect of the project, namely, ‘Atlantic’ at Egmore. An amount of Rs.41,37,73,978/- was claim...