Madras HC says Leased Construction ITC Requires Proper Own Account Analysis

The Court found that the assessing authority had rejected ITC on construction-cum-leasing without properly considering the binding Safari Retreats principle that construction intended for lease or licence cannot automatically be treated as construction on the taxpayer's own account. Separately, the Court held that ledger recovery without DRC-01D intimation and expiry of the prescribed seven-day period was procedurally invalid.