2011 (9) TMI 212

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.... passed by the Tribunal which has allowed expenditure towards renovation expenses, post operative rent and post, operative interest. 2. The assessee was engaged in running a hotel under the name Ceasar's Restaurant. He filed returns admitting an income of Rs. 18,07,260/-. The return was processed under Section 143(1)(a) on 19.9.1997. In response to the notice issued the assessee appeared throug....

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..... 8,52,490/- representing renovation expenses. Similarly, it disallowed a sum of Rs. 2,56,994/- claimed as post operative rent and a sum of Rs. 2,86,100/- claimed as post operative interest. It also disallowed the expenses under various heads. 3. Aggrieved by the said order, the assessee preferred an appeal to the Commissioner of Income Tax (Appeals). The Appellate Authority though confirmed th....

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....iate the said claim. In so far as post operative rent and post operative interest is concerned, it cannot be construed as a business expenditure when the business had been closed in the year 1994. Therefore, he submits the orders passed by the appellate authorities are illegal and liable to be set aside. 6. The material on record discloses that the assessee was carrying on hotel business. Due t....