ITO, RUDRAPUR vs. M/S. HOTEL RUDRA CONTINENTAL, UTTRAKHAND

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ITA 5558/DEL/2013Status: DisposedITAT Delhi27 December 2016AY 2010-113 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal followed the Uttarakhand High Court's order which had set aside the ITAT's decision and remanded the issue back to the AO for fresh adjudication. The AO was directed to decide the matter afresh after providing an opportunity to the assessee.

What were the facts?

The Revenue appealed against the CIT(A)'s order granting deduction under Section 80IC to a hotel. Both parties agreed that the issue was previously decided by the ITAT in favor of the assessee.

What were the issues?

Whether a hotel situated in Himachal Pradesh or Uttarakhand, with a valid pollution department 'No Objection', is eligible for deduction under Section 80IC. Interpretation of the activity described in Part C, item 15 of the Fourteenth Schedule concerning eco-tourism and hotels.

Which sections of the Income-tax Act were involved?

Section 80IC

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “C”, NEW DELHI

Before: SHRI H.S. SIDHU & SHRI L.P. SAHU

ORDER PER H.S. SIDHU : JM

The Revenue has filed this Appeal against the order dated 22.7.2013 of the Ld. CIT(A)-II, Dehradun for the assessment year 2010-11 on the following grounds:-

“1. Whether Ld. CIT(A) was correct, on facts and in the circumstances of the case that hotels situated in the state of Himachal Pradesh or the State of Uttranchal having a valid license on the basis of No Objection from Pollution

Department which can be treated to be a hotel eligible for deduction u/s. 80IC as per provisions of section 80IC. 1

2. Whether Ld. CIT(A) was correct, on facts and in the circumstances of the case in interpreting the activity in item

no. 15 of Part C of the Fourteenth Schedule “Eco tourism including hotels, resorts, spa, entertainment / amusement parks and ropeways equivalent to norms prescribed to obtain

“No Objection” from the Pollution Department.”

2.

Facts narrated by revenue authorities are not disputed by both the parties, hence, the same are not repeated here for the sake of convenience.

3.

At the time of hearing both the parties agreed that the issue in dispute has already been decided in favor of the assessee by the ITAT, but in the appeal filed by the Revenue in the case of CIT vs. M/s Aanchal Hotels Pvt. Ltd. & Ors. before the Hon’ble High Court of Uttarakhand at Nainital, the Hon’ble High Court of Uttarakhand vide its order dated 16.6.2016 has set aside the order of the ITAT and remanded the issue in dispute back to the file of the AO to decide the same afresh, as per law, after providing opportunity to all the assesses, taking note of the observation of the Hon’ble High Court in its order dated 16.6.2016.

4.

Keeping in view of the agreed position by both the parties as well as the facts and circumstances of the present case, we are of the considered view that the Hon’ble High Court of Uttarakhand at Nainital in of 2012 & Ors. in the case of CIT vs. M/s Aanchal Hotels Pvt. Ltd. & Ors. vide its order dated 16.6.2016 has set aside the order of the ITAT and remanded the issue in dispute back to the file of the AO to decide the same afresh, as per law, after providing opportunity to all the assesses, as per the observation of the Hon’ble High Court given in its order dated 16.6.2016. Respectfully following the order dated 16.6.2016 of the Hon’ble High Court of Uttarakhand at Nainital in the case of CIT vs. M/s Aanchal Hotels Pvt. Ltd. & Ors. (Supra), we set aside the issue in dispute to the file of the AO with the direction to decide the same afresh in accordance with the directions given in the order dated 16.6.2016 passed by the Hon’ble High Court of Uttrakhand at Nainital, as aforesaid, after giving opportunity to the assessee.

5.

In the result, the Revenue Appeal stands allowed for statistical purposes.

Order pronounced in the Open Court on 27/12/2016.

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