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2012 (10) TMI 639 - AT - Income TaxDeduction u/s 80-IC - disallowance as ecological damage to the area has been done to the minimum possible extent - Held that:- In terms of section 80-IC(2)(b), the deduction is admissible if the hotel commences the operation within the period mentioned in the statute. It is also admissible if the hotel commences any operation and undertakes substantial expansion during the period mentioned in the statute. Therefore, in the case of an existing hotel, the deduction will be admissible if the substantial expansion takes place within the prescribed period. It has been the contention of the assessee that his hotel is approved by the Government. The hotel cannot be approved by the Government without obtaining No Objection from the Pollution Department. There is no material on record to show that Pollution Department of the Government has not given No Objection to the assessee, thus it cannot be said that the assessee is running a hotel which is outside the norms prescribed by the Pollution Department. No material has been brought on record to show that “eco-tourism status has been granted to any other hotel and which status assessee does not have. In the absence of definition of “eco-tourism” the hotel as added into the Item No. 15 of Part C is to be construed to be hotel situated in the State of Himachal Pradesh or the State of Uttaranchal having a valid licence on the basis of No Objection from Pollution Department which can be treated to be a hotel eligible for deduction u/s 80-IC as per provisions of section 80IC - in favour of assessee.
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