M/S SIRMOUR HOTELS (P) LTD.,SIRMOUR vs. DCIT, CIRCLE, PARWANOO

PDF · subscribers
ITA 1387/CHANDI/2017Status: DisposedITAT Chandigarh11 April 2018AY 2010-113 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 held that expansion in a hotel building, including furniture and fixtures, constitutes an investment in plant and machinery for the purpose of claiming deduction under Section 80IC, if planned for special technical requirements of hospitality services.

What were the facts?

The assessee claimed deduction under Section 80IC for substantial expansion of its hotel. The CIT(A) denied the deduction, following a previous order. The assessee relied on a coordinate bench's decision in its own case for earlier assessment years.

What were the issues?

Whether expansion of a hotel, including furniture and fixtures, qualifies as substantial expansion for the purpose of deduction under Section 80IC of the Income-tax Act.

Which sections of the Income-tax Act were involved?

Section 80IC

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DIVISION BENCH, ‘B’ CHANDIGARH

Before: SHRI SANJAY GARG & DR. B.R.R. KUMAR

For Appellant: Shri Ashwani Kumar
For Respondent: Smt. Lagan Preet Sandhu, Sr DR
Hearing: 11.04.2018Pronounced: 11.04.2018

Per Sanjay Garg, Judicial Member:

The present appeals have been preferred by the assessee for

different assessment years against the separate orders of the

ITA Nos. 1386 to 1388/Chd/2017- M/s Sirmour Hotels Pvt Ltd. Distt.Sirmour 2

Commissioner of Income Tax [hereinafter referred to as CIT(A)],

Faridabad, dated 27.07.2017 & 21.08.2017 respectively.

2.

The sole issue raised in all these appeals is as to whether the

assessee is entitled to benefit of deduction u/s 80IC of the Income-

tax Act, 1961 (in short 'the Act') on account of substantial expansion

of the hotel. The Ld. counsel, at the outset, has invited our attention

to the impugned orders of the CIT(A) wherein the Ld. CIT(A) has

followed the order of the CIT(A) in the own case of the assessee for

assessment year 2007-08, as the facts and the issue involved being

identical in nature. The Ld. counsel has further produced before us

the copy of the decision of the Coordinate Bench of the Tribunal

dated 19.3.2018 in the own case of the assessee relating to the

assessment years 2007-08, 2008-09 and 2012-13 vide which the issue

has been decided in favour of the assessee holding that when a unit

like a hotel, the expansion in the building has been so planned and

constructed to serve the assessee’s special technical requirements of

hotel / hospitality services including the investment on furniture and

fixtures, then for the purpose of meaning of substantial expansion,

by expansion in such building, furniture and fixtures would

constitute an investment in plant and machinery for the purpose of

claim of deduction u/s 80IC of the Act

3.

Since the issue is squarely covered in the own case of the

assessee by the decision of the Tribunal dated 19.3.2018 for

assessment year 2007-08, hence, there being no distinguishable facts

or law brought to our knowledge, these appeals are accordingly

decided in favour of the assessee.

ITA Nos. 1386 to 1388/Chd/2017- M/s Sirmour Hotels Pvt Ltd. Distt.Sirmour 3

In the result, the appeals of the assessee are allowed Order pronounced in the Open Court.

Sd/- Sd/- (B.R.R.KUMAR) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 11.04.2018 Rkk Copy to: • The Appellant • The Respondent • The CIT • The CIT(A) • The DR

More judgments on Section 80IC

All 1,180 judgments and leading authorities on Section 80IC →

Recent GST High Court judgments

Search GST case law →