TMI Blog2016 (2) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... i A. T. Varkey, Judicial Member For the Petitioner : Shri P. K. Nath, CA For the Respondent : Shri S.K. Jain, DR ORDER Per A. T. Varkey, Judicial Member This appeal, at the instance of the assessee, is filed against the order of the CIT (Appeals)-II, Dehradun dated 02.07.2012 for the assessment year 2009-10. 2. The sole issue before us is whether the AO was correct in disallowing the assessee s claim for deduction u/s 80IC of the Income-tax Act, 1961 (hereinafter the Act ) by holding that eco-tourism is a condition precedent for claiming deduction u/s 80IC and since the assessee failed to produce muster rolls of labourers, the same was not allowed by the AO and the CIT (A) upheld the order of the AO. Now, the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee, being aggrieved by the said decision of the ld. CIT (A), is in appeal before us. 6. Ld. AR for the assessee submitted that the AO was patently incorrect while not appreciating the fact that it was the first year i.e. AY 2009-10 of claiming the deduction u/s 80IC of the Act and holding that in AY 2006-07 the deduction claimed by the assessee u/s 80IC was rejected. He further submitted that the assessee function within the Municipal limits of Nainital and adheres to its rules and regulations regarding disposal of wastage etc. According to the ld. AR, similar hotels in the State of Uttarakhand and Himachal Pradesh have been given 80IC deduction and for no reason, the CIT (A) has upheld the order of AO, simply by stating that in the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2005-06 2006-07 ITA No.637 (Del)/2011 Assessment Year 2007-08 in the case of M/s. Anchal Hotels Pvt. Ltd. Vs. ACIT, Dehradun; (iii) That later on, for claiming the deduction u/s 80IC of the Act, the issue of obtaining the NOC from Pollution Control Board was also addressed and settled by the Hon ble ITAT, New Delhi in ITA No.765/Del/2013 AY 2009-10, ITO Ward 3, Rishikesh vs. Tapovan Resorts, the Hon ble jurisdictional ITAT dismissed the revenue appeal. In the said appeal, one of the grounds taken by the Revenue was that the NOC from Pollution Control Board was prerequisite for claiming the deduction u/s 80IC of the Act. (iv) That the ld. CIT (Appeal) vide Order dated 09.04.2015 for the AY 2012-13, on the same facts and ground, rely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d perused the material on record. We take note of the fact that assessee has hotel at Nainital in the State of Uttarakhand, namely, Hotel Prim Rose. We find that the assessee has claimed deduction u/s 80IC in respect of Hotel Prim Rose for the first time in AY 2009-10 and the AO has wrongly stated that in the AY 2006-07, the deduction claimed by the assessee u/s 80IC deduction was rejected. We further find that for AY 2012-13 in the case of the assessee, the CIT (A), Haldwani by order dated 24.08.2015 has allowed the deduction u/s 80IC with the observation that, The averments of the ld. AR and the case of ITO, Ward 2, Rishikesh v. Tapovan Resorts (ITA No.765/Del/2013) has been considered. Now that the Hon ble ITAT was given a finding that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, be allowed, in computing the total income of the assessee, a deduction from such profits and gains, as specified in sub-section (3). (2) This section applies to any undertaking or enterprise,- (a) ............ (b) which has begun or begins to manufacture or produce any article or thing, specified in the Fourteenth Schedule or commences any operation specified in that Schedule, or which manufactures or produces any article or thing, specified in the Fourteenth Schedule or commences any operation specified in that Schedule and undertakes substantial expansion during the period beginning- (i) .................. (ii) on the 7th day of January, 2003 and ending before the 1st day of April, 2012, in the State of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, in our opinion, 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 80IC as per provisions of Section 80IC. Therefore, we allow the claim of deduction u/s 80-IC to the assessee and the appeal of the assessee is allowed. We also find that the other decisions relied upon by the ld. AR further fortify the case of the assessee. Therefore, in our opinion, the assessee falls in the ken of eco-tourism which qualifies for deduction u/s 80IC of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X
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