M/S GANGA BEACH RESORT,RISHIKESH V. ITO, RISHIKESH

ITA 66/DDN/2023

AI Insights

The case involves M/s Ganga Beach Resort appealing against the order of the National Faceless Appeal Centre (NFAC), which confirmed the Income Tax Officer's rejection of the assessee's claim for deduction under Section 80 IC (2) (b) (ii) of the Income Tax Act, 1961 for the assessment year 2007-08. The primary contention was the erroneous rejection of the deduction claim, which had been previously allowed in the base assessment year 2005-06. The Tribunal noted procedural lapses in the lower appellate authority's handling of the case and decided to remand the matter back for a comprehensive re-evaluation.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 471961 (ITAT-DEHRADUN)
• Duration Of Justice: 1 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 18-11-2024
• Assessment Year: 2007-2008
• Appeal Filed On: 05-09-2023
• Other Referred Cases: CIT vs Aanchal Hotels Pvt. Ltd
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: A. S. RANA
• Assessee Lawyers: P AVAN KUMAR NATH
• Keywords: Difference of opinion; Change of opinion; Assessment record
• Section: 147; 250

Judgement Text

"1 ITA no. 66/DDN/2023 IN THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN BENCH BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ITA No. 66/DDN/2023 [Assessment Year: 2007-08 M/s Ganga Beach Rsort, Seshdhara Tapovan, Laxman Jhula Road, Tehri Garhwal, Rishikesh-249192 PAN: AAGFG 0354 H Vs Income Tax Officer, Rishikesh. APPELLANT RESPONDENT Assessee by Shri Pavan Kumar Nath, Adv. Department by Shri A.S. Rana, Sr. DR Date of hearing 18.11.2024 Date of pronouncement 20.11.2024 O R D E R PER SATBEER SINGH GODARA, JM: This assessee’s appeal for assessment year 2007-08 arises against National Faceless Appeal Centre (NFAC), Delhi’s DIN and order no. ITBA/NFAC/S/250/2023-24/1053567689(1), dated 06.06.2023, in case no. CIT(A), Dehradun/10525/2018-19, in proceedings u/s 250 of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’. Heard both the parties at length. Case file perused. 2 ITA no. 66/DDN/2023 2. The assessee pleads the following substantive grounds in the instant appeal. “Ground No. 1: Because Ld. CIT-Appeals erred law in confirming the Order of the Ld. AO rejecting the Assessee's bonafide claim of deduction U/s 80 IC (2) (b) (ii) of the Income Tax Act, 1961. Ground No 2: Because the Ld. CIT-Appeals erred in law in not appreciating the fact that the Assessee's claim of Deduction U/s 80 IC (2) (b) (ii) of the Income Tax Act, 1961 was allowed in the base assessment year 2005-06; the deduction u/s 80 IC (2) (b) (ii) of the Act for the instant year was consequent to and dependent upon the base year, therefore, without rejecting the claim of deduction for the base year, the claim of deduction for later years cannot be rejected. Ground No. 3 Because Ld. CIT-Appeals erred in law in not appreciating the law that mere change of opinion cannot be a basis of reopening the assessment u/s 147 of the act. Ground No. 4 Because Ld. CIT-Appeals erred in law and facts in not appreciating that the Assessee's Hotel was functioning as per the guidelines, as prescribed by the Hon'ble High Court of Uttarakhand, in the Case of CIT vs Aanchal Hotels Pvt. Ltd.” 3. Both the learned representatives invited our attention to the CIT(A)/NFAC’s lower appellate discussion in paras 7 to 8 wherein it had more appellate points first round remand direction than having framed any point wholly followed by a detailed discussion thereupon as contemplated u/s 250(6) of the Act. 4. Faced with this situation, the Revenue sought to buttress the point that the assessee had failed to file all the relevant details in the instant second round remand proceedings before the lower authorities. It could hardly dispute the clinching fact that since this second round remand proceedings of the relevant 3 ITA no. 66/DDN/2023 already formed part of the assessment records. Be that as it may, we deem it appropriate in this background to restore the assessee’s instant appeal back to the CIT(A)/NFAC for its afresh appropriate adjudication, as per law, preferably within three effective opportunities of hearing, subject to a rider that it shall be taxpayer’s risk and responsibility to plead and prove all the relevant facts in consequential proceedings. Ordered accordingly. 5. This assessee’s appeal is allowed for statistical purpose. Order pronounced in open court on 20.11.2024. Sd/- Sd/- (PRADIP KUMAR KEDIA) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "