TaxTMI 
TaxTMI 
TaxTMI 
2016 (12) TMI 1425
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....ion under section 80IC of the Act of Rs. 11,51,621/- on misconstruction of the statutory provisions contained in the Act and. facts and circumstances of the appellant company. 2 That learned Commissioner of Income Tax (Appeals) has erred in disregarding the decision of Hon'ble Delhi Bench of Tribunal in the case of Shri Bidhi Chand Singhal, Hotel Tourist Empire vs. ITO in ITA No. 3419/D/2009 for Assessment Year 2006-07, wherein identical claim of deduction had been allowed. The disallowance thus sustained in disregard of binding orders is neither justified nor valid. 3 That the learned Commissioner of Income Tax (Appeals) has failed to appreciate that once the Serial No. 15 Part C of XIV Schedule clearly provided that eco-tourism in....
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.... of income on 31.10.2007 declaring income of Rs. 5,83,098/-. The AO noticed that the assessee claimed deduction on the income of Hotel business under section 80IC(2)(b) of the Act as applicable to the State of Uttarakhand under the entry at Sl. No. 13 of Schedule-XIV(Part C) which reads as under : "Eco-tourism including hotels, resorts, spa, entertainment/amusement parks and ropeways". 4. The Assessing Officer referring to office memorandum for insertion of the Fourteenth Schedule to the IT Act by Finance Act, 2003 noted that it lays down that industries eligible for such incentives should be environment friendly with potential for local employment generation and use of local resources. He also noted that once separate deduction for hote....
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.... having solar water treatment plant as well as sewage treatment plant was found to be wrong. The Income Tax Inspector who visited the hotel reported that such plants were not in existence. They were also not reported in the assessee's balance-sheet. (iii). The assessee had also paid sewerage tax of Rs. 3600/- for using the public sewer. (iv). The hotel was using CFL along with normal tube lights and other regular electric appliances. The rooms were air-conditioned. (v). No pollution control measures were visible even in the kitchen. (vi). There was no water-harvesting or water-recycling or waste treatment. There was no lawn or plantation of any other type. It was neither a part of any ecotourism unit nor doing any activity to promot....
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....Assessing Officer and also in subsequent years 2008-09, 2009-10 and 2010-11 by the CIT(Appeals). The appeal of the Revenue filed before the Tribunal for A.Y. 2009-10 also stood dismissed on account of low tax effect. It was also submitted that once the deduction has been allowed in initial year, there is no justification to discard the same in subsequent year. It was submitted that the ld. Authorities below have to follow the rule of consistency. Reliance is placed for this proposition on the following decisions : (i). CIT vs. Excel Industries Ltd.358 ITR 295 (SC) (ii). CIT vs. J.K. Charitable Trust, 308 ITR 161 (SC) It was further submitted the ld. CIT(A) while deleting the similar addition in appeal for A.Y. 2009-10 has realized the mi....
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....cy, as can be seen from the written synopsis filed by the assessee before us. The assessee has not tried to rebut the objections of the assessing officer that the assessee has failed to fulfill the norms of ecotourism. The assessee has also not countered the observations of the Assessing Officer as summarized by us in para 4 (i) to (x) of this order. One of the findings of the AO, based on record, is that out of the total receipt of Rs. 35,42,170/- by way of hotel room rent, 51.23% had been received from a single customer, namely NTPC Ltd. (Tapovan Vishnugarh Hydro Power Project, Joshimath) and the NTPC had taken the hotel rooms on rent on regular basis for accommodating its workforce which itself has nothing to do with tourism or ecotouris....