Section 80IB: Tax Holiday cannot be granted on Bogus transactions

S. Gurushankar Vs CIT (Madras High Court) The issue under consideration is whether the AO is correct in disallowing deduction u/s 80-IB i.e tax holiday for 5 years in case of assessee? In the present case, the petitioner, is the Chairman of the Meenakshi Mission Hospital and Research Centre, Madurai. He had set up a hospital in Nilgiri Therku Thottam Village, Thanjavur Taluk, and District, to help the rural people. As per secttion 80-IB(11C), grant of five years’ tax holiday allowed to encourage hospitals to be set up anywhere in India, except certain specified urban areas and to be particul...