TaxTMI 
TaxTMI 
2014 (10) TMI 874
X X X X Extracts X X X X
X X X X Extracts X X X X
.... rejection of deduction u/s 80IC(2) was not based just on failure to obtain NOC from the pollution Control Board but it was based on the factual facts. 2. Whether the Ld. CIT(A) has erred in law and on facts not to appreciate the fact that ecotourism is the condition precedent, to be complied with for hotels for claiming deduction u/s 80-IC of the IT. Act, 1961. 3. Whether the Ld. CIT(A) has erred in law and on facts in holding that deduction should be allowed if the assessee satisfies the following conditions:- (a) It is a Hotel, (b) It has a valid License, (c) NOC from the pollution Control Board has not been denied to it. 2. Brief facts The assessee, a partnership firm, under the name and style of M/s. Tapovan Resorts a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in deciding the appeal in assessee's favor. 3. That ground No. 3 of that departmental appeal is prima-facie misconceived as all the three points viz :- a. That it is a Hotel, b. That it has a valid license, c. That NOC from the Pollution Control Board has not been denied to it 6. We have heard Shri O.P. Sapra, the Ld.Counsel for the assessee and Shri Sameer Sharma, Sr. D.R. on behalf of the Revenue. 7. On a careful consideration of the facts and circumstances of the case, on a perusal of the material on record, orders of the authorities below and case laws cited, we hold as follows. 8. The assessee made its claim for deduction u/s 80IC for the first time during the asstt. Year 2007-08. This claim has been allowed and ha....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ontrary view taken. The particulars of the assessments where the claim has been made and allowed in the earlier years is given in the table below. Sr. No. Assessment Year Deduction claimed u/s 80IC (Rs.) Disallowance 80IC (Rs.) Assessment u/s i) 2005-06 31,069/- -------- 143(3)(page 18 of Paper Book) ii) 2006-07 23,25,655/- --------- 143(3) (pages 19- 20 of Paper Book) iii) 2007-08 67,19,255/- --------- 143(1) iv) 2008-09 1,06,03,655/- -------- 143(3)(page 23 of Paper Book) v) 2009-10 72,28,540/- 72,28,540/- Disputed in Appeal vi) 2010-11 8,72,235/- -------- 143(1) 13.1. The assessments of t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 appel....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ear without altering or reopening the assessment proceedings in which the eligibility to claim the deduction has been established. 76. In cases where deduction is granted under section 80-1 of the Act, the applicability of the section is determined in the year in which the new industrial undertaking is established. The qualification as to whether any industrial undertaking fulfills the condition as specified under section 80-1 of the Act has to be determined in the year in which the new industrial undertaking is established. Although the deduction under section 80-1 of the Act is available for the assessment years succeeding the initial assessment year, the conditions for availing the benefit are inextricably linked with the previo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nial of relief in the subsequent years would not be permissible without disturbing the assessment in the initial assessment year. The relevant extract from the decision of the Gujarat High Court in Saurashtra Cement & Chemical Industries (supra) is quoted below :- "The next question to which the Tribunal addressed itself, and no our opinion rightly, was whether the Tribunal was justified in refusing to continue the relief of tax holiday granted to the assessee-company for the assessment year 1968-69, in the assessment year under reference, that is, 1969-70, without disturbing the relief granted for the initial year. It should be stated that there is no provision in the scheme of s. 80J similar to the one which we find in the ....