M/S. RASAYANA HOTEL,NEW DELHI vs. ITO, UTTRAKHAND

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ITA 2719/DEL/2017Status: DisposedITAT Delhi04 August 2020AY 2012-138 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal, following its own prior decision on identical facts for a previous assessment year, set aside the orders of the lower authorities and deleted the addition. The issue regarding the assumption of jurisdiction was deemed academic.

What were the facts?

The assessee, a partnership firm, claimed a deduction of Rs. 55,57,720/- under Section 80IC for hotel activities in Uttarakhand. The Assessing Officer denied this deduction, and the CIT(A) upheld the disallowance.

What were the issues?

Whether the assessee was eligible for deduction under Section 80IC and whether the assessment order was passed under the correct section of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 80IC,Section 143(3),Section 153C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “F” : DELHI

Before: SHRI BHAVNESH SAINI & SHRI ANIL CHATURVEDI

Hearing: 29.07.2020Pronounced: 04.08.2020

ORDER PER BHAVNESH SAINI, J.M.

This appeal by Assessee has been directed against the Order of the Ld. CIT(A), Dehradun, Dated 28.02.2017, for the A.Y. 2012-2013, challenging the assessment order to be null and void and addition of Rs.55,57,720/- on account of disallowance of deduction under section 80IC of the I.T. Act, 1961.

2 ITA.No.2719/Del./2017 M/s. Rasayana Hotel, New Delhi.

2.

Briefly the facts of the case are that the assessee is a partnership firm, filed its return of income declaring NIL income, claiming deduction under chapter VI-A for Rs.55,57,720/-. The case was selected under scrutiny. The assessee claimed deduction under section 80IC against the income from hotel activities in Uttrakhand State. The A.O. considering the issue in detail denied the deduction under section 80IC of the I.T. Act, 1961 and made the above addition. The Ld. CIT(A) dismissed the appeal of assessee.

3.

The Learned Counsel for the Assessee contended that instead of passing the Order under section 143(3), Order should have been passed under section 153C of the I.T. Act, 1961 and conditions of this section are satisfied. He has submitted that in preceding A.Y. 2010-2011, A.O. passed similarly worded assessment order and denied deduction under section 80IC of the I.T. Act which was the first year and the matter travelled up to ITAT, SMC-Delhi Bench in which the Tribunal in ITA.No.3071/Del./2015 for the A.Y. 2010-2011 vide Order Dated 11.10.2017 deleted

3 ITA.No.2719/Del./2017 M/s. Rasayana Hotel, New Delhi. the entire addition on identical facts. The Order of the Tribunal is reproduced as under :

4 ITA.No.2719/Del./2017 M/s. Rasayana Hotel, New Delhi. 5 ITA.No.2719/Del./2017 M/s. Rasayana Hotel, New Delhi. 6 ITA.No.2719/Del./2017 M/s. Rasayana Hotel, New Delhi.

3.1. He has, therefore, submitted that the issue on merit is covered by the aforesaid Order of the Tribunal.

4.

The Ld. D.R. was provided with the copy of the Order of the Tribunal above and the Ld. D.R. submitted that the issue is covered in favour of the assessee on merits.

7 ITA.No.2719/Del./2017 M/s. Rasayana Hotel, New Delhi.

5.

We have heard the Learned Representatives of both the parties through video conferencing and considering the facts of the case in the light of Order of the Tribunal for the A.Y. 2010-2011 (supra), we are of the view that the issue is covered by the Order of the Tribunal for the A.Y. 2010- 2011 in which in first year the Tribunal has directed to allow the deduction under section 80IC on the identical facts, which fact is not disputed by the Ld. D.R. Following the reasons for decision, we set aside the Orders of the authorities below and delete the entire addition. The issue of assumption of jurisdiction under section 153C / 143(3) is left with academic discussion only and would not yield any result. Therefore, same is not adjudicated at this stage. In view of the above, appeal of the Assessee is allowed.

6.

In the result, appeal of the Assessee allowed.

Order pronounced in the open Court.

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