35ad

This query is : Resolved

CA PARMOD BANSAL (Querist)
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15 April 2013 One of our clients has constructed warehouse and leased the same to Punjab warehousing corp. for storage of food grains under FCI scheme. Whether deduction u/s 35AD can be claimed by the assessee. As per FCI advt., the same is available.

However, in my opinion, the assessee is earning rent from the warehouse and has not setup /operated the warehouse facility. So he cannot claim the deduction. Please give your valuable opinion.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 April 2013 Pleas go through the agreement entered into
with PWC to strengthen your opinion.
.
Ultimately, the facility yields rentals only.
The only thing which I would like to suggest is, show the rental income as business income and claim deduction on the basis of the advertisement and available facts, if these are reasonably supportive .