https://www.taxtmi.com/caselaws?id=757039 The ITAT Chandigarh allowed the assessee's appeal on multiple grounds. The tribunal deleted additions made under sections 69 and 115BBE for unexplained investment in hotel construction, ruling that DVO reports based on estimation without incriminating material found during search cannot justify additions. The rejection of books of accounts under section 145(3) was overturned since it was based solely on the deleted construction investment addition. Business loss disallowance was reversed as the basis for rejection of books was unsustainable. The tribunal also allowed section 35AD deduction for hotel expenditure, holding that star rating certification can be obtained subsequently and the four-star certificate qualified the business for deduction benefits. en-us Fri, 28 Jun 2024 00:00:00 +0530 Tue, 13 Aug 2024 11:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=757039 The ITAT Chandigarh allowed the assessee's appeal on multiple grounds. The tribunal deleted additions made under sections 69 and 115BBE for unexplained investment in hotel construction, ruling that DVO reports based on estimation without incriminating material found during search cannot justify additions. The rejection of books of accounts under section 145(3) was overturned since it was based solely on the deleted construction investment addition. Business loss disallowance was reversed as the basis for rejection of books was unsustainable. The tribunal also allowed section 35AD deduction for hotel expenditure, holding that star rating certification can be obtained subsequently and the four-star certificate qualified the business for deduction benefits. Case-Laws Income Tax Fri, 28 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=757039