TaxTMI 
TaxTMI 
2015 (6) TMI 316
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....:- The assessee is a company and filed its return of income on 26.8.2008 declaring nil income after claiming deduction u/s 80 IC at Rs. 8,16,195/- for the AY 2008-09. The Assessing Officer (the 'AO') denied exemption claimed by the assessee u/s 80 IC of the Income Tax Act, 1961 (the 'Act') by observing as follows: "3.8 I have considered the submission of assessee along with discussion made above in totality. Contention of assessee is not found acceptable on following grounds: 1. Eco-tourism is primary ingredient for availing the deduction u/s 80 IC of the IT Act 1961, as discussed above in para no.3.3 and 3.4. 2. The Hotel is not found in promoting eco-tourism on factual grounds. 3. The hotel is neither a part of any eco-tourism unit promoting/managing Ecotourism NOR doing any activities to promote eco-tourism. It is also noted that assessee is neither making any investment for conserving the environment or natural resources nor making any contribution in any such project/ program. 4. Hotel is using CFL along with normal tube-lights in rooms, televisions, small refrigerators, ceiling fan, exhaust fan, normal table lamps using bulbs, havi....
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....he AY 2009-10 in the case of ITO vs. M/s Ganga Beach Restorts order dt. 27.9.2013 and submitted that the AO is not entitled to reexamine the claim of the assessee for deduction u/s 80 IC, without disturbing the claim allowed in the initial AYs. He submitted that the case of the assessee has to be allowed. 6. The Ld.Sr.D.R. Mr.P.Damkanunjna, on the other hand opposed the contentions of the assessee and submitted that it is not proper to argue that once a mistake has been committed in a particular AY by the revenue authorities, such a mistake can be perpetuated year after year. He relied on the order of the Revenue authorities and submitted that the term echo tourism has to be properly appreciated and as the assessee does not possess any clearance from Pollution Control Board of Uttarakhand Govt., the exemption cannot be granted. 7. After hearing rival contentions, perusing papers on record, orders of authorities below, we hold as follows. 8. The assessee has been granted deduction u/s 80 IC for the AY 2005- 06, 2006-07 and 2007-08. The first year of claim was the A.Y. 2005-06. That the impugned AY i.e. AY 2008-09 is the fourth year of the claim. This Bench of the Tribunal i....
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....ears 1991-92 and thereafter. As stated hereinbefore, in certain cases where the issues involved have attained finality on account of the subject matter of dispute having been finally adjudicated, the question of reopening and revisiting the same issue again in subsequent years would not arise. This is based on the principle that there should be finality in all legal proceedings. The Supreme Court in the case of Parashuram Pottery Works Co. Ltd. Vs. ITO (1977) 106 ITR 1 had held as under :- "that the policy of law is that there must be a point of finality in all legal proceedings, that stale issues should not be reactivated beyond a particular stage and that lapse of time must induce repose in and set at rest judicial and quasi-judicial controversies as it must in other spheres of human activity." 75. In the facts of the present case, where although the Assessing Officer has allowed the assessee deduction under section 80-1 of the Act in the preceding years, one may still have certain reservations as to whether the issue of eligibility of Unit nos. 2 and 3 fulfilling the conditions has been finally settled, since the question has not been a subject matter of any ap....
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.... for deduction under section 80-1 of the Act on the ground that the industrial undertaking in respect of which deduction is claimed did not fulfill the conditions as specified in Section 80- 1(2) of the Act, without undermining the basis on which the deduction was granted to the assessee in the initial assessment year. This in our view would not be permissible unless the past assessments are also disturbed. 77. The Assessing Officers over a period of three years being assessment years 1988-89, 1989-1990 and 1990-1991 have consistently accepted the claim of the assessee for deduction under section 80-I of the Act and it would not be open for the Assessing Officer to deny the deduction under section 80-1 of the Act on the ground of non fulfillment of the conditions under section 80- 1(2) of the Act without disturbing the assessment for the assessment years relevant to the previous year in which the Unit Nos. 2 & 3 were established. 78. This view has also been accepted by a Division Bench of Gujarat High Court in the case of Saurashtra Cement & Chemical Industries (supra). In that case, the Gujarat High Court held that where relief of a tax holiday had been granted t....