DCIT, Dehradun V. Shri Pankaj Nagalia, Dehradun

ITA 5026/DEL/2012

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7949 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 7 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 10-05-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 24-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAKHI BIM AL
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND SHRI C.M. GARG: JUDICIAL MEMBER ITA NO. 5026/DEL/2012 ASSTT. YR: 2009-10 DCIT, CIRCLE-2, VS. PANKAJ NAGALIA, DEHRADUN. PROP. M/S NAGALIA HOTELS, 13B, NEW SURVEY ROAD, DEHRADUN. PAN: AAVPN 2861 M ( APPELLANT ) (RESPONDENT) APPELLANT BY : MS. RAKHI BIMAL SR. DR RESPONDENT BY : SHRI ANIL JAIN ADV. DATE OF HEARING : 10/05/2016. DATE OF ORDER : 12/05/2016. O R D E R PER S.V. MEHROTRA, A.M: THIS IS REVENUES APPEAL ASSAILING THE ORDER DATE D 30.07.2012, PASSED BY THE LD. CIT(A)-II, NEW DELHI IN APPEAL NO. 164/C IT(A)-II/2011-12, FOR A.Y. 2009-10. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, A N INDIVIDUAL, PROPRIETOR OF M/S NAGALIA HOTELS (PACIFIC), SUBHASH ROAD, DEHR ADUN, FILED RETURN OF INCOME DECLARING INCOME OF RS. 24,838/-, AFTER CLAI MING DEDUCTION U/S 80IC(2) AMOUNTING TO RS. 2,15,09,860/-. THE AO HAS OBSERVED THAT ASSESSEE DECLARED ASSESSMENT YEAR 2005-06 TO BE HIS INITIAL ASSESSMENT YEAR OF CLAIMING DEDUCTION U/S 80IC. HOWEVER, THE ASSESSEE CLAIMED DEDUCTION U/S 2 80IC FOR AY 2006-07 WHEN THERE WAS PROFIT FROM ELIG IBLE BUSINESS. THE AO DENIED THE ASSESSEES CLAIM U/S 80IC, FIRSTLY ON TH E GROUND THAT UTTRAKHAND POLUTION CONTROL BOARD HAD NOT GIVEN ITS CONSENT TO OPERATE AND SECONDLY THE ASSESSEES ALTERNATE PLEA THAT HIS HOTEL WAS AN ECO TOURISM HOTEL, WAS ALSO DENIED. LD. CIT(A) ALLOWED THE ASSESSEES APPEAL. B EING AGGRIEVED, THE DEPARTMENT IS IN APPEAL BEFORE US AND HAS TAKEN FOL LOWING GROUND OF APPEAL: THE LD. CIT(A) HAS ERRED IN LAW IN ALLOWING THE DE DUCTION U/S 80IC OF THE I.T. ACT, 1961 AS THE ASSESSEES HOTEL DOES NOT FULFILL THE CONDITIONS OF ECO TOURISM AS LAID DOWN IN ITE M NO. 15 OF FOURTEENTH SCHEDULE. 3. AT THE TIME OF HEARING LD. COUNSEL FOR THE ASSES SEE FILED BEFORE US A COPY OF TRIBUNALS ORDER DATED 30.09.2015 RENDERED IN ASSESSEES OWN CASE IN ITA NOS. 1185/DEL/2013 & 3634/DEL/2013 FOR AY 20 06-07, WHEREIN IN PARA 13 THE TRIBUNAL HAS OBSERVED AS UNDER: WE HAVE GONE THROUGH THE RECORDS AND PERUSED THE A RGUMENTS OF BOTH THE COUNSELS. IT IS CLEARLY MENTIONED IN T HE SCHEDULE XIV PART C SR. NO. 15 .OF THE INCOME TAX ACT, 1961 THAT 'ECO- TOURISM' INCLUDES HOTELS IN THE LIST OF ARTICLES OR THINGS OR OPERATIONS FOR. AVAILING DEDUCTION UNDER SECTION801 C(2). THE SAME IS REITERATED IN THE CASE LAWS OF. SHRI BIDHI CHAND SINGHAL VS. ITO AND M/S ANCHAL HOTELS (P) LTD. VS. ACIT. S ECTION 801C (2) (B) (II) HAS BEEN INSERTED FOR SOLE PURPOS E OF ESTABLISHING THE ECO-TOURISM INDUSTRY IN RELATION T O THE DEVELOPMENT OF THE SAID REGIONS OF HIMACHAL PRADESH AND UTTARANCHAL/UTTARAKHAND. THE ASSESSEE'S HOTEL IS FA LLING UNDER THE SAID CATEGORY AND IS ENTIT1ED FOR THE DEDUCTION UNDER SECTION 80IC(2). THUS THE CIT(A) HAS RIGHTLY ALLOWE D THE BENEFIT OF THE DEDUCTION UNDER SECTION 801C TO THE ASSESSEE. 3 4. AS THE FACTS ARE IDENTICAL, RESPECTFULLY FOLLOWI NG THE DECISION OF TRIBUNAL IN ASESSEES OWN CASE FOR AY 2006-07, THE REVENUES APPEAL IS DISMISSED. 5. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCEMENT IN OPEN COURT ON 12/05/2016. SD/- SD/- (C.M. GARG) (S.V. MEHROTRA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 12/05/2016. *MP* COPY OF ORDER TO: 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI.