ITO, Nahan V. M/s Devon Hotels, Sirmour

ITA 764/CHANDI/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68483 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 04-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B, CHANDIGARH BEFORE SHRI T.R. SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO. 764/CHD/2013 ASSESSMENT YEAR : 2007-08 I.T.O. NAHAN VS. M/S DEVON HOTELS VILLAGE PATILO TEH PAONTA SAHIB SIRMOUR AAFFD 3716R (APPELLANT) (RESPONDENT) APPELLANT BY SHRI AKHILESH GUPTA RESPONDENT BY: NONE DATE OF HEARING 16.9.2013 DATE OF PRONOUNCEMENT 20.9.2013 O R D E R PER T.R.SOOD, A.M THIS APPEAL IS DIRECTED AGAINST THE ORDER DATED 22 .4.2013 OF THE LD. CIT(A), SHIMLA. 2. IN THIS APPEAL THE REVENUE HAS RAISED THE FOLLOW ING GROUND: ON THE FACTS AND IN THE CIRCUMSTANCES, THE LD. CIT (A) HAS ERRED IN DELETING THE ADDITION OF RS. 8,76,232/- MA DE BY THE ASSESSING OFFICER ON ACCOUNT OF DISALLOWANCE U /S 80IC. 3 NOBODY APPEARED ON BEHALF OF THE RESPONDENT DESPI TE NOTICE. HOWEVER, PERUSAL OF THE RECORD SHOWS THAT T HE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE, THEREFORE, WE PROCEEDED TO DECIDE THE APPEAL ON EX-PARTE BASIS. 4 THE LD. DR FOR THE REVENUE WAS HEARD. 5 AFTER CONSIDERING THE SUBMISSIONS OF THE LD. DR F OR THE REVENUE AND THE MATERIAL AVAILABLE ON RECORD, WE FI ND THAT THE ASSESSEE WAS RUNNING A HOTEL IN THE NAME AND STYLE OF M/S 2 DEVEN HOTELS, IN PAONTA SAHIB IN HIMACHAL PRADESH. THE ASSESSEE HAS CLAIMED DEDUCTION U/S 80IC AMOUNTING T O RS. 8,76,932/-. THE DEDUCTION WAS DENIED BY THE ASSESS ING OFFICER BY OBSERVING THAT THE HOTEL OF THE ASSESSEE DID NOT QUALIFY THE CONDITIONS OF SECTION 80IC WITHIN THE MEANING OF IT EM NO. 15 IN SCHEDULE XIV OF I.T. ACT AND THE ASSESSEE WAS MEREL Y RUNNING A MULTI STOREYED COMMERCIAL HOTEL IN THE CITY. THE ISSUE WAS DECIDED BY HE LD. CIT(A) VIDE PARA 4 WHICH READS AS UNDER: THE ISSUE REGARDING THE ADMISSIBILITY OF DEDUCTION U/S 80IC OF THE ACT IN THE CASE OF STANDALONE HOTELS OP ERATING AS PURE COMMERCIAL CENTRES STANDS DECIDED BY MY ORD ER DATED 4.11.2011 IN APPEAL NO. IT/238/2010-11/SML IN THE CASE OF SHRI RAGHUNATH SINGH THAKUR, HOTEL MARINA, THE MALL, SHIMLA FOR THE ASSESSMENT YEAR 2008-09. THE VIEWS HELD BY ME ON THE GIVEN SUBJECT ARE DISCUSSED AT LE NGTH IN THE SAID ORDER. HOWEVER, THE HON'BLE ITAT CHANDIGA RH BENCH B IN THE CASE OF THE SAID SHRI RAGHUNATH SI NGH THAKUR VIDE THEIR ORDER DATED 22 ND JUNE,2012 HAS ALLOWED THE DEDUCTION U/S 80IC OF THE ACT ON THE GROUND THA T THE TERM HOTEL IS INCLUDED IN THE WORD ECO-TOURISM UNDER ITEM 15 IN PART-C OF THE XIV SCHEDULE TO THE I.T. A CT, AND THAT THE SPECIAL PROVISIONS ARE PROVIDED BY THE STA TUTE FOR THE PROMOTION OF TOURISM IN THE STATE OF HIMACHAL PRADESH. WITH A VIEW TO MAINTAIN THE JUDICIAL CONS ISTENCY, THE APPEAL OF THE ASSESSEE UNDER CONSIDERATION IS A LLOWED IN DEFE4RENCE TO THE ORDER OF THE HON'BLE ITAT, CHANDIGARH. 6. ABOVE CLEARLY SHOWS THAT THE LD. CIT(A) HAS SIMP LY FOLLOWED THE ORDER OF THE TRIBUNAL IN CASE OF SHRI RAGHUNATH SINGH THAKUR VS. DCIT. THEREFORE, WE FIND NOTHING WRONG IN THE ORDER OF THE LD. CIT(A) AND CONFIRM THE SAME. 7 IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 20.9.2013 SD/- SD/- (SUSHMA CHOWLA) (T.R. SOOD) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 20.9.2013 SURESH COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT/THE C IT(A)/THE DR 3