SAHARA INDIA TOURISM DEVELOPMENT CORPN. LTD., ,KOLKATA vs. ACIT, CIRCLE - 8(2), KOLKATA , KOLKATA

ITA 357/KOL/2018Status: DisposedITAT Kolkata17 November 2025AY 2014-15Bench: SHRI GEORGE MATHAN (Judicial Member), SHRI SANJAY AWASTHI (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the business is considered 'set up' when the assessee acquires the necessary wherewithal and physical infrastructure, even if awaiting commencement. Expenses incurred after setting up but before commencement are deductible. The Tribunal directed the Assessing Officer to allow the benefit of expenses as claimed.

What were the facts?

The assessee, Sahara India Tourism Development Corporation Ltd, acquired a cruise ship to run a floating hotel in Goa. Expenses were incurred for acquiring and renovating the ship, and for its operations before the business commenced. The Assessing Officer disallowed these expenses on the grounds that the business had not started.

What were the issues?

Whether expenses incurred prior to the commencement of business, but after acquiring the necessary infrastructure, are allowable as a deduction.

Which sections of the Income-tax Act were involved?

Section 37,Section 10(2),Section 256(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, KOLKATA

Before: SHRI GEORGE MATHAN & SHRI SANJAY AWASTHI

Hearing: 17/11/2025Pronounced: 17/11/2025

Per George Mathan, JM : This is an appeal filed by the assessee against the order of the ld. CIT(A)-3, Kolkata, dated 29.12.2017 for the assessment year 2014-2015. 2. None represented on behalf of the assessee. Shri Abhijit Adhikary, Sr. DR appeared on behalf of the revenue.

3.

It was submitted by the ld. Sr. DR that the appeal has been filed by the assessee and as nobody appeared on behalf of the assessee, the order of the ld. CIT(A) is liable to be confirmed. It was the further submission that in para 4 of the assessment order, the ld. Assessing Offic

The order continues below.

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