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TMI Blog2015 (8) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... IB of the Act. However, the Administrative Commissioner found that the assessee is not eligible for deduction u/s 80IB for the year under consideration. Referring to the approval granted by the DGIT (Exemption), the copy of which is available at page 6 of the paper book, the ld.representative submitted that the approval was granted with effect from 12-04-1999 which is relevant for the assessment year 2000-01. The assessee is eligible for exemption for 10 assessment years. Therefore for the year under consideration, according to the ld.representative, the assessee is eligible for exemption. 3. Referring to section 80IA as it stood at the relevant point of time, the ld.representative submitted that the assessee was initially entitled for ded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by the DGIT (Exemption). Since the DGIT (Exemption) specifically says that the approval was with effect from assessment year 2000-01, according to the ld.representative, the assessee is eligible for exemption for the year under consideration. Referring to section 80IA(6)(ii), the ld.representative submitted that the assessee is eligible for exemption for 10 assessment years for claiming deduction u/s 80IA of the Act. Referring to sub clause (iv) of section 80IA(6), the ld.representative submitted that the words "consecutive assessment years" have been omitted in sub clause (ii) of section 80IA(6). The Administrative Commissioner by referring to section 80IB of the Act which was subsequently introduced to substitute the then existing sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the initial assessment year. Therefore, for the purpose of claiming deduction the initial assessment year is the year in which the assessee started functioning its hotel and not the year in which the approval was granted. According to the ld.rDR, though approval is one of the pre-conditions to be fulfilled for grant of deduction u/s 80IA of the Act, the initial assessment year for claiming the deduction shall be the year in which the assessee started functioning its hotel. According to the ld.DR, since the legislature has defined initial assessment year as the year in which the business of hotel started functioning, the date of approval granted by DGIT (Exemption) cannot be taken as the initial assessment year. Therefore, according to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or a hotel or operation of a ship or developing, maintaining and operating any infrastructure facility or scientific and industrial research and development or providing telecommunication services whether basic or cellular including radio paging, domestic satellite service or network of trunking and electronic data interchange services or construction and development of housing projects or operating an industrial park or commercial production or refining of mineral oil in the North Eastern Region or in any part of India on or after the 1st day of April, 1997 (such business being hereinafter referred to as the eligible business), to which this section applies, there shall, in accordance with and subject to the provisions of this section, be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the rules made under this Act; (iii) to (vi) xxxxxxxxxxxxxxxxxxxxxxxxxxxxx (6) The number of assessment years referred to in sub-section (1) shall, including the initial assessment year, be- (i) xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx (ii) ten in the case of an assessee, not being a co-operative society, deriving profits and gains from an industrial undertaking specified in sub-clause (a) or sub-clause (b) or sub-clause (d) of clause (iv) of sub-section (2) or located in an industrially backward district of Category A specified in sub-clause (c) of clause (iv) of that sub-section; (iia) to (12)(b) xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx (c) "initial assessment year"- (1) In the case of an industrial undertaking or cold storaqe pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uded from the provisions of the Act. Taxation statute has to be interpreted on the basis of plain language employed by the legislature. The authorities / courts have no power to insert or delete any word in the statute as enacted by the Parliament. Of course, a harmonious reading has to be made to give effect to all the provisions of the Act without omitting any clauses of the sub clauses in the Act. A harmonious reading of the Act clearly says that though the approval of the prescribed authority, viz. the DGIT(Exemption) is a pre-condition, the initial assessment year shall be the year in which the assessee hotel started functioning for the purpose of computing ten assessment years for grant of deduction u/s 80IA of the Act. If the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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