2009 (4) TMI 552 - AT - Income Tax

Summary

The Appellate Tribunal ITAT COCHIN heard an appeal under the Expenditure-tax Act, 1987, against the order of the Commissioner of Income-tax (Appeals)-II at Kochi. The appeal was related to the treatment of income from a convention center as chargeable expenditure by the Assessing Officer. The CIT(A) upheld the decision, considering the convention center as part of the hotel business. The assessee argued that the convention center was a separate business unit, maintaining separate accounts and facilities. However, the tribunal found that the convention center was an extension of the hotel business, falling under the wide definition of accommodation in the statute. Therefore, the appeal was dismissed, and the order was upheld. The tribunal concluded that the rent collected from the convention center was subject to expenditure tax.