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TMI Blog1984 (7) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... th effect from 13-8-1979 for reliefs other than development rebate and 12-11-1979 for the development rebate, since both these dates fell outside the accounting period which for the assessee was the year ending 31st January. In the assessee's appeals, the rather inconsistent decision of the Commissioner (Appeals) for the assessment years 1976-77 and 1979-80 to the effect that the approval does not apply for the two years in absence of ' actual order of the Government of India ' is questioned. The learned departmental representative referred to the various correspondence filed by the assessee in its paper book to support the finding of the first appellate authority. According to him, the correspondence clearly indicates that there was no approval for the specified purposes for the years under consideration. The learned counsel for the assessee, however, relied upon the very correspondence in support of his case. He pointed out that there was a letter as early on 4-5-1974, addressed to Associated Builders and Real Estate Agents, conveying the approval of the Department of Tourism to the hotel project ' from the point of view of its suitability for foreign tourists '. Such approval wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Department of Tourism. You may, therefore, apply to that department for the necessary action." Since the ITO persisted with his action wanting separate specified approval for each section, the assessee addressed a letter to the Department of Tourism on 12-11-1979 explaining its requirements. The reminder was issued on 24-12-1979. The Department of Tourism came up with the following communication : " I am to refer to your letter, dated 13-8-1979, addressed to the Central Board of Direct Taxes and to your letter, dated 12-11-1979, on the above subject and to certify that Hotel Emerald, Hyderabad, owned by M/s Hotel Emerald (P.) Ltd., Abid Road, Hyderabad, has been on the approved list of the Government of India for purposes of the following sections of the Income-tax Act, 1961 : 1. Section 32(1)(v) and 80J(6), with effect from 13-8-1979 ; 2. Section 33(1)(b)(B)(ii), with effect from 12-11-1979." This communication, no doubt, authorises development rebate from 12-11-1979 and other reliefs from 13-8-1979. The assessee immediately took up the matter with the Department of Tourism, stating that this has been mentioned with reference to the assessee's letter asking for clari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proved from 4-5-1974 and that the hotel continues to be on the approved list even as mentioned on 13-9-1983. It is, therefore, contended that there is absolutely no scope for inferring that the project was approved only from the two dates mentioned in one of the letters addressed by the Department of Tourism, ignoring all other letters. He pointed out that the common words used in sections 32(1)(v), 80J(6) and 33(1)(b)(B)(ii) of the Act are that there should be approval of the Government ' for the time being ' either on this behalf or for the purpose of the sub-section. He referred to Stroud's Judicial Dictionary for the meaning of the phrase ' for the time being ' to point out that in the context of tax assessment, ' for the time being ' would mean the date of assessment as decided in the case of Wankie Colliery Co. v. IRC [1922] 2 AC 51. It was also pointed out that even the general meaning is to indicate an indefinite period of time including that which may arise after the enactment and that the question of a definite time will have to be ascertained with reference to the context in each case. He also referred to a decision of this Tribunal in the case of Hotels (Andhra) (P.) Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the hotel was not constructed in accordance with the project report which had the approval. This argument loses its force when we consider the communication of the Department of Tourism dated 13-9-1983, wherein it was clearly stated that the approval given on 4-5-1974 continues till 13-9-1983. The only question, therefore, would be whether the impugned letter, which refers to some particular dates for approval for various sections, could restrict the relief only to later years. We do not think so for more than one reason. Such section-wise approval is really not necessary. It appears that the CBDT itself was of the same view as is evident from a letter issued by the President of the Federation of Hotel and Restaurant Association of India, extracted earlier. A confirmation all the same, if required, is available from the extract of a communication (reproduced in the immediately preceding paragraph) issued in another case by the CBDT that the original approval by the Department of Tourism could be taken as approval for purposes of section 80B(7)/80J(6)(d). It was in this context that the Tribunal held that this approval would be available for section 32(1)(v) or section 33 in that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were interpreted in Wankie Colliery Co.'s case, where it was stated that the words ' for the time being ' mean the ' date of assessment ' and not during the period of charge. This decision squarely helps the assessee who is otherwise entitled to a clear finding that there was an approval both prior to and during the accounting years when the entire correspondence is read together. The words ' for the time being ' have to be considered in the context of the statute. It is clear that the approval should relate to the year but it may be forthcoming after the accounting year. This, in our opinion, is the reasonable interpretation though, as repeatedly mentioned by us, it is our conclusion that there was an approval in the years themselves. We do not discuss a number of other cases cited by the learned counsel because, in our view, the matter is clear especially in the light of repeated interpretations given for approved hotels by the Trade Associations, Department of Tourism and the CBDT either in circulars or with reference to the other specific cases mentioned in an earlier paragraph. 4. In the result, the assessee will be eligible for the reliefs under sections 32(1)(v), 33(1)(b)( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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