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TMI Blog2015 (6) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... O-TOURISM and deviated from the main section 80IC of the Act. 3. The item no. 15 of PART-C of XIV schedule includes hotels under ECOTOURISM which is grossly mistaken by both the authorities below. 4. It is prayed to allow the claim of deduction u/s 80IC of Rs. 11,31,190/- and delete the entire addition." 2. Facts in brief:- The assessee is a company and filed its return of income on 28.9.2008 declaring nil income after claiming deduction u/s 80 IC at Rs. 11,31,194/- for the AY 2008-09. The Assessing Officer (the 'AO') denied exemption claimed by the assessee u/s 80 IC of the Income Tax Act, 1961 (the 'Act') by observing as follows: "3.8 I have considered the submission of assessee along with discussion made above in totality. Content ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourism are adopted by the hotel. 3.9 None of the conditions as discussed above are fulfilled by the assessee, therefore, claim of deduction u/s 80 IC of the Act is rejected. Penalty proceedings have been initiated separately for furnishing inaccurate particulars and thereby concealing income. (Addition of Rs. 11,31,194/-). 3. The assessee carried the matter in appeal before the First Appellate Authority without success. 4. Further aggrieved the assessee filed appeal before us. 5. The Ld.Counsel for the assessee Dr.Rakesh Gupta submitted that the AO has granted deduction u/s 80 IC to the assessee for the AY 2005-06 in an order dt. 27.3.2006 passed u/s 154 of the Act. Further he submitted that for the AY 2006-07 the claim of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . This Bench of the Tribunal in the case of ITO vs. M/s Ganga Beach Restorts order dt. 27.9.2013 has held as follows. "13. We are not expressing any opinion on the above findings of the Ld. CIT(A) for the reason that it would be an academic exercise in the case of this assesee, as we find that the assesee herein has been claiming deduction u/s 80IC of the Act for the earlier years and that the AO has allowed the same in the first year u/s 143(3) and as it is well settled that if the conditions for allowability of a deduction is examined by the AO in the initial year of claim then, in the subsequent year, this aspect cannot be reviewed by the AO and a contrary view taken. The particulars of the assessments where the claim has been made and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer 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. "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-judicia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... occur in the previous year relevant to the initial assessment year and have to be examined in the initial assessment year. In such cases where the facts on the basis of which the deductions are claimed are subject matter of an earlier assessment year and do not arise in the current assessment year, it would not be possible for an Assessing Officer to take a different view in the current assessment year without altering or reopening the assessment proceedings in which the eligibility to claim the deduction has been established. 76. In cases where deduction is granted under section 80-1 of the Act, the applicability of the section is determined in the year in which the new industrial undertaking is established. The qualification as to whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 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 Industries (supra). In that case, the Gujarat High Court held that where relief of a tax holiday had been granted to an assessee in an initial assessment year in which the conditions for grant of tax holiday had tobe examined, denial of relief in the subsequent years would not be permissible without disturbing the assessment in the initial assessment year. The relevant extract from the decision of the Gujarat High Court in Saurashtra Cement & Chemical Industries (supra) is quoted below :- "The next question to which the Tribunal addressed itself, and no our opinion rightly, was whether the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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