TMI Blog2012 (10) TMI 713X X X X Extracts X X X X X X X X Extracts X X X X ..... sion 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. Thus assessee would be entitled to deduction under Section 80IC considering the substantial expansion taken place within the prescribed period by assessee - in favour of assessee. - ITA Nos.3433/Del/2011 & 3434/Del/2011 - - - Dated:- 12-10-2012 - SHRI G.D.AGRAWAL, AND SHRI CHANDRA MOHAN GARG, JJ. Appellant by : Shri Ashwani Taneja, FCA. Respondent by : Shri Priscilla Singsit, Sr.DR. ORDER PER G.D.AGRAWAL, VP : These appeals filed by the assessee are directed against the order dated 14th February, 2011 of learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 80IC on the ground that the activities of the assessee s hotel are not environment friendly and, therefore, it does not qualify for deduction under Section 80IC of the Act. The learned CIT(A) did not agree with this finding of the Assessing Officer but, he sustained the disallowance on some other ground. It would be evident from the following finding of the CIT(A):- 7. The appellant, as stated above, would have been allowed the claimed deduction only if it was a new hotel which is the primary condition specified in clause (b) of sub section (2) of section 80-IC which mandates that the operation of the hotel specified in the Fourteenth Schedule should have begun on the 7th day of January, 2003 and ending before the 1st day o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore us which remains to be considered is whether the sustenance of disallowance by the CIT(A) on the ground that the assessee did not commence its operations in the period specified under Section 80IC is justified. The learned CIT(A) has categorically recorded a finding that the assessee had undertaken substantial expansion during the aforesaid period. However, in his opinion, the assessee is entitled to deduction under Section 80IC only if the assessee commences its operations during the specified period and not when there was a substantial expansion during the specified period. We find that the ITAT Delhi Bench has considered the identical issue in the case of M/s Anchal Hotels (P) Ltd. (supra), wherein the ITAT held as under:- 4. W ..... X X X X Extracts X X X X X X X X Extracts X X X X
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