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Revenue has raised the ground that the Ld. CIT(A) erred in deleting the disallowance of expenditure u/s. 36(1)(iii) of the Act of Rs. 28.23 lakhs by relying on the order of the Hon’ble Tribunal in ITA No. 1242/Chny/2017 dated 27.08.2018 for assessment year 2012-13 in the assessee’s owncase, decided in favour of the assessee.

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Section 28 of the Income Tax Act, 1961—Business Income— Assessee was only engaged in the business of financial services though the main objects in the Memorandum of Association was Hotel Business and the ancillary objects in the Memorandum of Association also permitted the assessee company to carry on the business of financial services and in the process the assessee company had deployed its fund towards earning interest income because during the relevant assessment year the assessee company did not commenced activities with respect to Hotel Business and snce the business of the assessee company during the relevant assessment year was only financial services, the income earned during the relevant assessment year ought to be assessed as business income and the entire expenditure incurred by the assessee for earning such income has to be allowed as deduction - ASSTT. CIT V/s SUNSTAR HOTELS & ESTATES PVT. LTD. - [2020] 82 ITR (TRIB) 437 (ITAT-CHENNAI)