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TMI Blog2018 (12) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... s/2017 for the assessment year 2011-12. 3. The above tax case appeal is filed raising the following substantial questions of law : "i. Whether the assessee is entitled to claim deduction under Section 35AD(v)(aa) for the assessment year 2011-12 even though the classification for three star category was obtained by the assessee only during the next assessment year 2012-13 ? ii. Was it right on the part of the Tribunal to grant deduction under Section 35AD(v)(aa) especially when the assessee did not satisfy the conditions stipulated thereunder ? And iii. Whether the Tribunal ought to have applied the decision of the Madhya Pradesh High Court in the case of CIT Vs. Global Reality reported in (2015) 65 Taxmann.com 204 wherein it has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year 2010, then the assessee is very much eligible for claiming investment allowance. If we accept to the contention of the Assessing Officer that the assessee was granted star category classification only on 10.5.2011, the Assessing Officer should not have accepted the income of the assessee offered to tax, which was earned in lieu of star category of the hotel. Once the application for star category classification dated 17.4.2010 was not rejected by the India Tourism and even after inspection on 22.4.2011, the HRACC has not found any discrepancy and very well recommended for classification under three star category, we find no fault on the assessee, since the assessee has, vide its letter dated 02.8.2010, informed about the fully operatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee from the hotel business, which was newly established and which became fully operational in the year 2010. Therefore, the Tribunal was right in concluding that the Assessing Officer should not have accepted the income of the assessee offered to tax, which was earned in lieu of star category of the hotel. 11. Mrs.R.Hemalatha, learned Senior Standing Counsel appearing for the Revenue submits that obtaining star category recommendation from the Ministry of Tourism, Government of India is a pre-requisite for being entitled to the benefit of Section 35AD of the Act. In this regard, reliance is placed on the decision of the Hon'ble Supreme Court in the case of Orissa State Warehousing Corporation Vs. CIT [reported in (1999) 237 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Section 80IB of the Act relating to deductions - profit and gains from industrial undertakings other than infrastructure development undertaking. The assessee therein was a partnership firm engaged in the construction and sale of houses. The housing project approved by the Municipal Corporation was started before 31.3.2004 by the assessee. The completion certificate of the project was not issued by the Local Authority before the cut off date i.e. 31.3.2008, but was issued on 04.5.2010. Later, it was clarified by the Local Authority that the date of completion of the project was 27.2.2008. Relying upon the clarification, the assessee claimed deduction under Section 80IB(10)(a) of the Act. The Assessing Officer disallowed the claim of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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