Safari Retreats (ITC on construction)

Builder claimed ITC on inputs/input services used in construction of a shopping mall let out on rent. Section 17(5)(d) blocks ITC on construction of "immovable property on own account".

Whether the bar applies when the building is let out (functional test) vs sold (capital test)?

The functional test applies - if the building is the supplier's plant from which it earns taxable rental income, ITC should be available. Each case fact-dependent.

17(5)(d) is not absolute; the "plant" exception applies on functional analysis.