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TMI Blog2008 (3) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... der of the Income Tax Appellate Tribunal, Chandigarh , Bench 'A' Chandigarh (for short 'the Tribunal'), dated 30.5.2005 passed in ITA No.718/CHANDI/2001 for the Assessment Year 1997-98 raising the following substantial question of law: - "Whether on the facts and in the circumstances of the case and in law, the order of the ITAT is perverse as the ITAT has failed to appreciate the fact that the CIT(A) restricted the food cost ratio to 55 % only on conjectures and surmises and without any evidence, whereas the Assessing Officer had based its order on the basis of results of 16 hotels/restaurants." The assessee owns a hotel. The assessee filed a return declaring loss of Rs.2,78,420/- on 29.11.1997. The assessee had shown receipts from room r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst the assessment , the assessee filed an appeal before the Commissioner of Income Tax(Appeals). It was contended by the assessee that sales were fully vouched, no specific defects were found in the books of accounts maintained by the assessee and therefore, the Assessing Officer was not justified in enhancing sales on mere presumption. After considering the assessee's contention, the Commissioner of Income Tax (Appeals) restricted the food cost at 55 % and gave relief of Rs.16,38,996/- to the assessee to that extent. While allowing the appeal partly, the Commissioner of Income Tax (Appeals) held that the assessee has a locational disadvantage as the same is situated at a far end place of the city whereas hotel Shivalik View operates on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scale with only 12 tables. The ambiance which is offered by CITCO hotel is different from the appellant hotel and the customer is prepared to pay high price for good ambiance. The CITCO hotel is patronized by elite and the rich people of the town, whereas the appellant's hotel is patronized by ordinary people. Therefore, there cannot be any comparison between the trading results of the two type of hotels." Feeling aggrieved against the said order, the Revenue as well as the assessee filed appeals before the Tribunal. The Revenue was aggrieved against the deletion of part of additions as made by the Assessing Officer whereas the assessee was aggrieved on the ground that he was entitled to the total deletion of the additions made by the Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the estimate of the Tribunal could not possibly be reached. Learned counsel for the assessee has relied upon a judgment of this Court in the case of Ved Parkash Versus Commissioner of Income Tax 265 ITA 642 in support of his contentions. We have heard learned counsel for the parties and have perused the order of the Tribunal. We are of the view that findings recorded by the Tribunal are pure findings of facts and do not give rise to any substantial question of law for consideration by this Court. It is well settled that food cost varies from establishment to establishment and therefore, there cannot be a comparison between two hotels/restaurants regarding the food cost ratio. It is also an accepted fact that the food c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, there cannot be any comparison between the trading results of the two type of hotels. The Revenue has not in fact challenged these findings before the Tribunal. No doubt, in such cases some element of estimate is unavoidable. However, this is a well settled that in the appellate jurisdiction under Section 260-A of the Act, this Court normally does not interfere by substituting its own estimate in place of the one of the Tribunal unless it is shown that the estimate of the Tribunal could not possibly be reached. This is not the case in hand. There is not an iota of evidence to show that the conclusion reached by the Tribunal is perverse in any case. Our view finds support from the judgment of this Court in Ved Parkash's case(s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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