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TMI Blog2012 (11) TMI 673X X X X Extracts X X X X X X X X Extracts X X X X ..... e customers who avail any of the services enumerated under Section 5 of the Act, it is such expenditure incurred by such person who occupies and the expenditure incurred during such time for all or any of the services rendered alone would constitute chargeable expenditure and the assessee becomes liable for the same under Expenditure Tax Act. Accordingly, the assessment order made by the Assessing Officer bringing the entire expenditure liable for expenditure tax is held as not correct. - Decided in favor of revenue. Decision in case of [H. P. Tourism Development Corporation Versus Union of India And Others 1998 (12) TMI 59 - HIMACHAL PRADESH HIGH COURT], followed. - Tax Case (Appeal) Nos. 2426 and 2427 of 2006 - - - Dated:- 9-10-2012 - MRS. CHITRA VENKATARAMAN AND MR. K.RAVICHANDRABAABU JJ. For appellant : Mr. T. Ravikumar For respondent : Mr. Ashok Pathy JUDGMENT K. RAVICHANDRABAABU, J.) The Revenue is on appeal as against the order of the Tribunal in respect of the assessment years 1997-98 and 1998-99. The following are the substantial questions of law raised in common in both the appeals at the time of admission:- 1. Whether on the facts and in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o complete the assessment on the basis of data available on record. The assessee preferred an appeal before the Commissioner of Income Tax (Appeals), who in turn agreed with the Assessing Officer and dismissed the appeal. The first appellate authority, while dismissing the appeal, has found that as the assessee's tariff rate was found to be more than Rs.1200/- even after considering the composite charges etc., the assessee's case was covered under the provisions of The Expenditure Tax Act, 1987. As against the said order, further appeal was preferred by the assessee before the Income Tax Appellate Tribunal. 4. It was contended by the assessee before the Tribunal that under the provisions of Section 3 of the Expenditure Tax Act, 1987, the expression "any unit of residential accommodation" should be taken to mean "all residential units of accommodation'." By contending so, and in support of the same, the assessee relied on the decision of the Kerala High Court reported in 272 ITR 331 (Commissioner of Income Tax Vs. Abad Hotels India (P) Ltd.) 5. The Tribunal after discussing with regard to the meaning of the word "any" and by following the decision of the Kerala High Court report ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny unit of residential accommodation at the time of incurring of such expenditure are one thousand two hundred rupees or more per day per individual and where, ..... ....... ..... ..... ....... ..... 5. Meaning of Chargeable Expenditure:- For the purposes of this Act, chargeable expenditure, (1) In relation to a hotel referred to in clause (1) of section 3, means any expenditure incurred in, or payments made to, the hotel in connection with the provision of - (a) Any accommodation, residential or otherwise; or (b) Food or drink by the hotel, whether at the hotel or outside, or by any other person at the hotel; or (c) any accommodation in such hotel on hire or lease; or (d) any other services at the hotel, either by the hotel or by any other person, by way of beauty parlour, health club, swimming pool or other services, but does not include - (i) any expenditure which is incurred, or payment for which is made, in foreign exchange before the 1st day of October, 1992; (ii) any expenditure incurred by persons within the purview of the Vienna Convention on Diplomatic Relations, 1961 or the Vienna Convention on Consular Relations, 1963; (iii) any expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue as to whether the provisions of the Expenditure Tax Act are attracted in the case of expenditure in a hotel wherein the room charges for any one room are Rs. 400 or Rs.1200 as the case may be or more per day per individual or that it is only when the room charges for all and each and every one of the rooms are Rs.400 or Rs.1200 as the case may or more per day per individual or that it should be with reference to persons occupying the room priced or with a tariff of Rs.400 or Rs.1200 as the case may be or more per day per individual. 12. After considering the various contentions made by the respective parties therein the Himachal Pradesh High Court observed that the object of the Act as disclosed from the preamble is to provide for the levy of a tax "on expenditure incurred in certain hotels or restaurants" and the charge is of a percentage stipulated from time to time of the chargeable expenditure incurred in a hotel referred to in Section 3(1) of the act, and the quantum of chargeable expenditure has to be determined in accordance with Section 5 of the Act. It is also observed therein that the charge is thus on the expenditure incurred and the object of levy is as also the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt at the penultimate paragraphs has observed as follows:- 24. Having regard to the serious and basic infirmities involved, in accepting either one or the other of the constructions advanced to be placed on Section 3 of the Act, we are obliged to have a construction, which would eliminate, and avoid such infirmities and unjust consequences, while at the same time making the law work effectively and enforced for achieving the avowed object of the legislation, making it also thereby beyond the reach of an individual to easily and successfully, by his own manipulation flout the same and evade liability under the Act. Such absurdities and unjust results and consequences could be safely averted, in our view, without defeating the objectives of the Legislature by construing Section 3 in such a manner as to make the Act and levy imposed by the Act to apply only to all chargeable expenditure incurred in or payments made by a person to a hotel in respect of any accommodation residential or otherwise of which the room charges for any unit of residential accommodation is four hundred rupees or above or one thousand two hundred rupees or above, as the case may be, for the relevant period o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Kerala High Court in the decision reported in 272 ITR 331 (Commissioner of Income Tax Vs. Abad Hotels India (P) Ltd.) has given a contra view by holding that the word "any" occurring in Section 3 cannot be restricted to one unit of residential accommodation and on the other hand, it means all the units of accommodation. We are unable to agree with this view. At this juncture, it is useful to refer to the decision of the Supreme Court reported in 1987 (2) SCC 707 (Shri Balaganesan Metals Vs. M.N.Shanmugham Chetty and others) referred to by the Revenue wherein the Apex Court has considered the meaning of the word "any' and found that the word "any" indicates 'all' or 'every' as well as 'some' or 'one' depending upon the context and the subject matter of the statue. 17. No doubt, the word "any" is capable of having more than one meaning but that will not prevent the courts from making an endeavour to place the correct and true meaning with due regard to the consequences resulting in hardship, injustice and absurdity. A construction should always be made to achieve the object of the enactment rather than to defeat the same. Therefore, we hold that the word "any" occurring in Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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