Ita v. Deputy Commissioner Of

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HON'BLE THE CHIEF JUSTICE DR. MANJULA CHELLUR & THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE FRIDAY, THE 7TH DAY OF MARCH 2014/16TH PHALGUNA, 1935 ITA.No. 261 of 2013 ----------------------------- ITA NO. 552/COCH/2006 OF INCOME TAX APPELLATE TRIBUNAL ,COCHIN BENCHDATED 25-10-2012. ------------- APPELLANT/APPELLANT/APPELLANT: ------------------------------------------------------- M/S.HOTEL & ALLIED TRADES PVT. LTD., C/O.CASINO HOTEL, W/ISLAND, COCHIN-3. BY ADVS.SRI.JOSEPH MARKOSE (SR.) SRI.V.ABRAHAM MARKOS SRI.BINU MATHEW SRI.TOM THOMAS (KAKKUZHIYIL) SRI.ABRAHAM JOSEPH MARKOS SRI.ABRAHAM VARGHESE THARAKAN RESPONDENT/RESPONDENT/DEPARTMENT ---------------------------------------------------------------- 1. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1 (1), ERNAKULAM 682 018. 2. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1 (1), RANGE 1, ERNAKULAM 682 018. BY SRI.JOSE JOSEPH, SC Msd. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 07-03-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ITA.No. 261 of 2013 ----------------------------- APPENDIX --------------- PETITIONER(S)' ANNEXURES: ------------------------------------------- ANNEXURE A:A TRUE COPY OF THE ASSESSMENT ORDER DATED 31.01.2003. ANNEXURE B:A TRUE COPY OF THE ORDER PASSED IN THE APPEAL DATED 08.09.2008 OF THE COMMISSIONER OF INCOME TAX (APPEALS)-II. ANNEXURE C:A TRUE COPY OF THE ORDER DATED 25.10.2012 PASSED BY THE ITAT IN ITA NO.552/COCH/2006. RESPONDENT(S)' ANNEXURES:--------------------------------------------- NIL //TRUE COPY// P.A.TO JUDGE. Msd. Manjula Chellur, C.J. & A.M. Shaffique, J.- - - - - - - - - - - - - - - - - - - - - - - - - - - - I.T.A. No. 261 OF 2013 - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 7[th] day of March, 2014 Manjula Chellur, C.J. JUDGMENT The following substantial questions of law arise for consideration in this appeal: “1. Is not deduction under Section 80 HHD and80IB allowable on the basis of the turnover, foreignexchange earnings and profits of each eligible unitsinstead of on the basis of total turnover and foreignearnings of all units together disregarding theeligibility in the facts and circumstances of the case. 2. Whether in the facts and circumstances of thecase the Tribunal is justified in interpreting Section 80HHD and 80IB to the effect that for the purpose ofcomputation of eligible deduction the profits and gainsof entire business of the Hotel has to be taken intoaccount. 3. Whether in the facts and circumstances ofthe case that the Tribunal is justified in sustaining thecomputation made by the authorities in the instantcase for the purpose of determination of deductionsallowable under Section 80HHD and 80IA of the Act.” ITA No. 261 of 2013 -:2:- 2. The assessee is a company engaged in Hotelbusiness and the appeal pertains to assessment year 2000-01.In this case the appellant assessee filed return of incomedeclaring net loss of `4,52,23,735/-. The assessing officerdisallowed the deductions claimed under Section 80HHD and80IB of the Income Tax Act. Aggrieved by the same, appealcame to be filed before the Commissioner of Income Tax(Appeals) which was dismissed and the same was challengedbefore the Tribunal. Tribunal also dismissed the appeal of theappellant assessee. 3. So far as Section 80HHD after referring to 294 ITR67, Tribunal opined that the orders of the assessing officer whichcame to be confirmed by Commissioner of Income Tax (Appeals)was justified. So far as the principle adopted, eligibility todeduct under Section 80HHD and also eligibility of deductionsunder Section 80IB being the same, Tribunal was justified innegativing the contentions of the appellant assessee. In the lightof Hotel and Allied P. Ltd. v. Deputy Commissioner of ITA No. 261 of 2013 -:3:- 3. So far as Section 80HHD after referring to 294 ITR67, Tribunal opined that the orders of the assessing officer whichcame to be confirmed by Commissioner of Income Tax (Appeals)was justified. So far as the principle adopted, eligibility todeduct under Section 80HHD and also eligibility of deductionsunder Section 80IB being the same, Tribunal was justified innegativing the contentions of the appellant assessee. In the lightof Hotel and Allied P. Ltd. v. Deputy Commissioner of ITA No. 261 of 2013 -:3:- Income Tax[2014 361 ITR 184(Ker.)] pertaining to the verysame assessee, this appeal is dismissed, in favour of theRevenue. Manjula Chellur, Chief Justice. A.M. Shaffique, Judge. ttb/07/03