TaxTMI 
TaxTMI 
2025 (6) TMI 85
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....lowed by the Income Tax Appellate Tribunal in favour of the Petitioner; b) Issue a writ in the nature of Certiorari quashing the order dt. 29.03.2024 (Annexure P-8) passed by the Respondent No. 3 through which the order dt. 25.02.2020 (Annexure P-6) has been withdrawn under the garb of passing an order u/s 154 of the I.T. Act, 1961, in violation of the law laid down by the Hon'ble Supreme Court in the case of T.S. Balaram, ITO Vs. Volkart Bros, reported in [1971] 82 ITR 40. c) Issue a writ, order, or direction, especially in the nature of Mandamus, directing the Respondents to restore the order dt.25.02.2020 (Annexure P-6), wherein the Appeal effect was given to the order of the Income Tax Appellate Tribunal dt. 09.08.2019 (Annexure P-5), and in the interim, the demand raised vide order dt. 29.03.2024 (Annexure P-8) be not given effect by staying the operation of impugned order dt. 29.03.2024 (Annexure P-8)." 2. The petitioner is a private limited Company and engaged in the business of running hotels and restaurants. The petitioner for the assessment year 2010-11 filed the return of income on 26.03.2011 declaring nil income after claiming deduction under Section 80IC of....
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....ake in the appeal effect order dated 25.02.2020, which had granted relief to the petitioner despite the fact that the substantive issue of eligibility as an "eco tourism" project under Section 80IC of the Act was never adjudicated in petitioner's favour by the appellate authorities. The ITAT order dated 09.08.2019 (Annexure P-5) was limited to the issue of delayed filing of return and did not decide the core issue of eligibility on merits, as is evident from the subsequent order dated 12.09.2023 (Annexure P-7). Therefore, the Assessing Authority was well within its jurisdiction to rectify the mistake apparent from the record and exercise power under Section 154 of the Act. 9. We have heard learned counsel for the parties and have also gone through the record of the case carefully. 10. At the outset, it needs to be observed that aggrieved by the assessment order passed by the Assessing Authority, the petitioner had filed appeal before the Commissioner of Income Tax (Appeals), which, however, came to be dismissed and aggrieved thereby, he had approached the ITAT, which allowed the appeal filed by the assessee. 11. In the appeal so filed before the authorities below, the petitioner....
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....t has failed to fulfill the basic requirement of law i.e. to submit the return of income in time, as provided in section 80AC, definitely it does not quality for deduction u/s 80IC of the Act. As such disallowance made by the A.O at Rs. 1,19,92.957/- is confirmed and appeal of the assessee is dismissed". 3. Against the orders of the Ld CIT(A), the assessee further filed appeal before Hon'ble ITAT and the Hon'ble ITAT decided the issue in favour of the assessee vide order dated 09.08.2019 in ITAT No. 301/Chd/2015. Hon'ble ITAT while making decision in favour of the assessee has not discussed the very point of fact on the basis of which the assessing officer has denied the claim of deduction of the assessee company u/s 80IC of the income fax Act. In the present case the hotel run by the assessee is located in the most urbanized and prime location of the capital city and is not located in the area as per 'eco-tourism policy of the state of Himachal Pradesh. The hotel run by the assessee company is neither approved as eco-tourism hotel by the Department of tourism [HP] nor approved by the H.P. state Environment Protection & Pollution Control Board. The assessee has n....
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.... prove eco-tourism activity of the assessee, we find that there is nothing on record that the said issue was raised before. the Coordinate Bench or anywhere emanating from the order so passed by the Coordinate Bench, in view of the same, where the matter is neither contested by either of the parties nor anywhere referred or brought to the notice of the Coordinate Bench. we do not see any mistake apparent on the face of the record in terms of the order passed by the Coordinate Bench. 5. In the result. Miscellaneous Application filed by the Revenue is dismissed." 15. It would be noticed that the respondents had sought the recalling of order precisely on the ground that the petitioner was not entitled to deduction under Section 80IC, as the hotel run by the assessee is located in the most urbanized and prime location of the capital city and is not located in the area as per "eco tourism" policy of the State of Himachal Pradesh. 16. It is further averred that the hotel run by the assessee company is neither approved as "eco-tourism" hotel by the Department of tourism of H.P nor approved by the H.P. State Environment Protection & Pollution Control Board and that the assessee has n....
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....archy and will result in complete breakdown of the judicial/quasi-judicial stem. 23. It would be apt to refer to some of the decisions of the Hon'ble Supreme Court relating to the principles laid down with regard to the necessity for the lower authority to comply with the directions given by the Appellate Authority. Those decisions are as under:- (i) Tirupati Balaji Developers (P) Ltd. vs. State of Bihar (2004) 5 SCC 1 (ii) Smt. Kausalya Devi Bogra & Ors. vs. Land Acquisition Officer, Aurangabad & Anr. (1992) Supp (1) SCC 443 (iii) Union of India vs. Kamalkshi finance Corporation (1984) 2 SCC 324 (iv) Kishore Samrite vs. State of UP & Ors. (2013) 2 SCC 398. 24. The principles that can be culled out from these judgments are as follows:- (a) There are two important postulates of constituting the appellate jurisdiction: (i) the existence of the relation of superior and inferior court; and (ii) the power in the former to review decisions of the latter. The superior forum shall have jurisdiction to reverse, confirm, annul or modify the decree or order of the forum appealed against. In the event of a remand the lower forum shall have to rehear the matter and compl....