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2016 (2) TMI 39 - ITAT DELHI

2016 (2) TMI 39 - ITAT DELHI - TMI - Disallowance of deduction u/s 80IC - as per revenue ‘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 - Held that:- The assessee falls in the ken of eco-tourism which qualifies for deduction u/s 80IC of the Act and, therefore, we set aside the orders of the authorities below and allow the grounds taken by the assessee. See Shri Bidhi Chand Singhal .....

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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 assessee is aggrieved by the decision of the ld. CIT (A) who has sustained the order the AO on th .....

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the Circular of CCIT-Dehradun dated 30th November, 2011 and since in the AY 2006-07 the deduction claimed by the Assessee, u/s 80IC of the I T Act 11961 was rejected on the ground that the assessee was not engaged in the Eco-tourism activity as mentioned in the Fourteenth Schedule in Part C for the State of Himachal Pradesh and the State of Uttaranchal mentioned as under :- Eco Tourism including hotels, resorts, spa, entertainment parks and ropeways. 4. Aggrieved by the said order of the AO, the .....

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ubmitted 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 Himacha .....

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he law does not stipulate and, therefore, on the reason that NOC from Pollution Control Board has not been produced before him, cannot be a ground for denying the 80IC deduction. According to the ld. AR, this issue is no longer res integra and in a plethora of decisions, this Tribunal has held that hotels situated at Uttarakhand qualifies for 80IC deduction and, therefore, the ld. CIT (A) was not right in upholding the action of the AO. In this regard, the following written submissions of the as .....

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was further confirmed by the Hon ble jurisdictional ITAT, New Delhi in ITA Nos.1800 & 1801 (Del)/2010 Assessment years 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, Rishike .....

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Resorts, Tehri Garwal-Uttarakhand - ITA No.765/Del/20133 AY 2009-10 DATED 20.10.2014 has allowed the assessee s appeal. Ld. AR also submitted that in assessee s own case for AY 2012-13, the ld. CIT (A) has allowed the 80IC deduction. So he prays that the orders of the lower authorities be set aside and the appeal of assessee be allowed. 7. Ld. DR, relying on the decision of the AO and CIT (A), contended that the 80IC deduction is meant for promotion of eco-tourism and, therefore, the hotels in t .....

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ch the assessee failed to do. So the ld. CIT (A) had no other alternative but to deny deduction u/s 80IC of the Act for the said assessee hotel. So, according to the ld. DR, since the lower authorities were right in denying the deduction u/s 80IC of the Act, the orders of the authorities below be not interfered with. 8. We have heard both the parties and 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 Ro .....

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n Resorts (ITA No.765/Del/2013) has been considered. Now that the Hon ble ITAT was given a finding that even a Pollution Certificate may not be required to claim deduction u/s 80IC of the Act, the Appellant deserves to succeed as far as ground no.1 is concerned. We find force in the arguments of the ld. AR that the rule of consistency needs to be observed and followed. Be that as it may be, let us examine whether the AO s action is as per law when he disallowed the claim u/s 80IC of the Act. 8.1 .....

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nt year 2006-07 dated 04.11.2010 and the Tribunal has held as under :- 5. We have heard both the parties, gone through the assessment order and order of CIT(A) and relevant provisions which have been referred by the AO and CIT(A). The provisions as contained in Section 80IC and as relevant to the case of the assessee are as under:- 80-IC. (1) Where the gross total income of an assessee includes any profits and gains derived by an undertaking or an enterprise from any business referred to in sub- .....

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duces 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 Himachal Pradesh or the State of Uttaranchal; or (iii) .................. Item No.15 of Part C of the Fourteenth Schedule reads as under:- 15. Eco-tourism including hotels, resorts, spa, entert .....

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