2008 (10) TMI 4

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....'BLE MR JUSTICE BADAR DURREZ AHMED HON'BLE MR JUSTICE RAJIV SHAKDHER BADAR DURREZ AHMED, J (ORAL) 1.    This appeal under Section 260A of the Income Tax Act, 1961 is directed against the order dated 30.01.2008 passed by the Income Tax Appellate Tribunal in ITA No. 996/Del/2005 pertaining to the assessment year 2001-02. 2.    The assessee runs a hotel busin....

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.... to whether the assessee utilized any of the flying hours or not. In the present case, the assessee was not able to utilize the flying hours, however the said sum of Rs 1.19 crores became due to MAL from the assessee on account of the annual fixed charges. The said sum was paid by the assessee to the MAL. 3.    The Assessing Officer did not allow this amount as a deduction on the....

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.... was incurred in the course of carrying on business.  The Tribunal held that the same could not be disallowed. The Tribunal also returned a finding that there was commercial expediency for entering into such an agreement and that the assessee had negotiated the flying rates at a concessional price. Consequently, it was held that the said expenditure was incurred wholly and fully for the purpo....