DCIT, DEHRADUN vs. SHRI PANKAJ NAGALIA, DEHRADUN

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ITA 5026/DEL/2012Status: DisposedITAT Delhi12 May 2016AY 2009-103 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal followed its previous order in the assessee's own case for a different assessment year, which held that the hotel qualified for the deduction under Section 80IC as an 'eco tourism' venture. Therefore, the revenue's appeal was dismissed.

What were the facts?

The assessee claimed a deduction under Section 80IC for his hotel business. The AO denied the deduction, citing lack of consent from the Pollution Control Board and that the hotel did not qualify as 'eco tourism'. The CIT(A) allowed the assessee's appeal.

What were the issues?

Whether the assessee's hotel qualifies as an 'eco tourism' hotel for the purpose of claiming deduction under Section 80IC. Whether the Tribunal's previous decision in the assessee's own case is binding.

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 “F” NEW DELHI

For Appellant: Ms. Rakhi Bimal Sr. DR
For Respondent: Shri Anil Jain Adv
Hearing: 10/05/2016

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 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 revenue’s appeal assailing the order dated 30.07.2012, passed by the ld. CIT(A)-II, New Delhi in appeal no. 164/CIT(A)-II/2011-12, for A.Y. 2009-10.

2.

Brief facts of the case are that the assessee, an individual, proprietor of M/s Nagalia Hotels (Pacific), Subhash Road, Dehradun, filed return of income declaring income of Rs. 24,838/-, after claiming 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 80IC for AY 2006-07 when there was profit from eligible business. The AO denied the assessee’s claim u/s 80IC, firstly on the ground that Uttrakhand Polution Control Board had not given its consent to operate and secondly the assessee’s alternate plea that his hotel was an eco tourism hotel, was also denied. Ld. CIT(A) allowed the assessee’s appeal. Being aggrieved, the department is in appeal before us and has taken following ground of appeal:

“The Ld. CIT(A) has erred in law in allowing the deduction u/s 80IC of the I.T. Act, 1961 as the assessee’s hotel does not fulfill the conditions of ‘eco tourism’ as laid down in item no. 15 of fourteenth schedule.”

3.

At the time of hearing ld. counsel for the assessee filed before us a copy of Tribunal’s order dated 30.09.2015 rendered in assessee’s own case in & 3634/Del/2013 for AY 2006-07, wherein in para 13 the Tribunal has observed as under:

“We have gone through the records and perused the arguments of both the counsels. It is clearly mentioned in the 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 Section801C(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. Section 801C (2) (b) (ii) has been inserted for sole purpose of establishing the eco-tourism industry in relation to the development of the said regions of Himachal Pradesh and Uttaranchal/Uttarakhand. The assessee's Hotel is falling under the said category and is entit1ed for the deduction under Section 80IC(2). Thus the CIT(A) has rightly allowed the benefit of the deduction under Section 801C to the assessee.”

4.

As the facts are identical, respectfully following the decision of Tribunal in asessee’s own case for AY 2006-07, the revenue’s appeal is dismissed.

5.

In the result, revenue’s appeal is dismissed.

Order pronouncement in open court on 12/05/2016.

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