TMI Blog2014 (11) TMI 762X X X X Extracts X X X X X X X X Extracts X X X X ..... come Tax and others Versus M/s Delhi Press Patra Prakashan Ltd. And others [2013 (6) TMI 70 - DELHI HIGH COURT] it has been held that the requisite conditions to be fulfilled for allowability of deduction u/s 80 I ought to be satisfied, not only in the first or the initial year, but in all the assessment years in which the deduction u/s 80I is claimed by the assessee - The AO has examined the condition of allowability of the claim u/s 80IC in the initial assessment year of the claims i.e. A.Y. 2005-06 itself in an order passed u/s 143(3) of the Act - This was followed in the subsequent A.Y. These assessments are not disturbed till date - There is no change in the facts and circumstances of the case - Only a fresh view, contrary to the earlier view is taken during the AY on the same set of facts and exemption is denied – Decided against revenue. - ITA Nos. 766, 2593/Del/2013 - - - Dated:- 20-10-2014 - Shri I. C. Sudhir, J. M. And Shri J. Sudhakar Reddy, A.M.,JJ. For the Petitioner : Shri Gautam Jain, CA For the Respondent : Sh. Sameer Sharma, Sr.D.R. ORDER Per J. Sudhakar Reddy, Accountant Member Both these appeals filed by the Revenue are directed against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the fact that ecotourism is the condition precedent, to be complied with for hotels for claiming deduction u/s 80-IC of the I.T. Act, 1961. Hence this appeal was filed by the revenue. 4. We have heard Shri Sameer Sharma, Ld. Sr. D.R. on behalf of the Revenue and Shri Gautam Jain Ld. Counsel for the assessee. 5. On a careful consideration of the facts and circumstances of the case, on perusal of material on record, orders of the authorities below, and case laws cited, we hold as follows :- 5.1 In this case the assesese had claimed deduction u/s 80IC for the first time during the year asstt. Year 2007-08. The return was processed u/s 143(1) and the deduction has not been disallowed or withdrawn till date. Later for the asstt. Year 2008-09 the claim was allowed u/s 143(3). 5.2 Now the issue is whether the AO can disallow the claim for deduction u/s 80IC for the asstt. Year 2009-10 and 2010-11 when the claim has not been disallowed or withdrawn in the first two years. 5.3. This issue is no more res integra. The `C' Bench of the Tribunal in ITA No. 764/D/2013 for the asstt. Year 2009-10 in the case of ITO vs. M/s. Ganga Beach Resorts Tapovan order dated 27.9.2013 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been no change that could justify the Assessing Officer adopting a different view in the assessment years 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 conditi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing was formed. In such circumstances, it would not be possible for an Assessing Officer to reject the claim of an assesese 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 Indust ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
