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TMI Blog2018 (12) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... a particular date. Therefore, the provision, which is obviously to encourage establishment of hotels of a particular category, should be read as a beneficial provision and therefore, the interpretation given by the Tribunal considering the facts of the case is perfectly valid - Decided against revenue - Tax Case Appeal No.773 of 2018 - - - Dated:- 13-11-2018 - Mr.Justice T.S. Sivagnanam And Mr.Justice N. Sathish Kumar For the Appellant : Mrs.R.Hemalatha for Mr.T.Ravikumar For the Respondent : Mr.A.S.Sriraman JUDGMENT T.S.SIVAGNANAM, J. We have heard the learned counsel on either side. 2. This appeal filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, the Act) is directed against t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hallenged by the assessee before the Commissioner of Income Tax (Appeals)-1, Chennai [for short, the CIT (A)], who, by order dated 03.1.2017, dismissed the appeal. The assessee carried the matter to the Tribunal, which, by the impugned order, allowed the appeal. Hence, the Revenue is before us. 6. We have perused the order passed by the Tribunal and we find that the reasons assigned by the Tribunal are just and proper. It will be worthwhile to extract the following findings rendered by the Tribunal in paragraph 5.1 of the impugned order : The Department has not disputed the operation of the new hotel of the assessee in the financial year 2010-11 because the Department has accepted the income, which was offered to tax. Once the De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar. 9. The facts noted by the Tribunal clearly show that the application filed by the assessee for such a classification was made on 19.4.2010 i.e in the assessment year 2010-11. Thereafter, it appears that there are certain procedure to be followed and an inspection requires to be conducted by an Approving Committee constituted for such purpose. The manner, in which, the inspection was conducted and the time frame taken by the Competent Authority are all beyond the control of the assessee. Thus, a holistic interpretation of the provisions has to be made and if the same is done, the attendant circumstances as to how the assessee was treated by the Department assume importance. 10. The Revenue has not disputed the operation of the new ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or any other purpose, the question of exemption would not arise. 13. In our considered view, this decision can be of no assistance to the case of the assessee, as, in the instant case, the requirement for obtaining a classification with regard to the star category hotel is not in the hands of the assessee nor that of the Revenue. The classification is done by the Ministry of Tourism, Government of India. Thus, what is required to be seen in the case on hand is as to how the assessee is treated by the Department. In the preceding paragraphs, we have noted the findings rendered by the Tribunal, which, in our considered view, are fully right. 14. The learned Senior Standing Counsel for the Revenue also places reliance on the decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n in Section 80IB(10)(a) of the Act and Explanation (ii) thereunder. We have perused the said provision. Explanation (ii) has specifically stated that the date of completion of construction of housing project shall be taken to be the date, on which, the completion certificate in respect of such housing project is issued by the Local Authority. Thus, interpreting the said provision, the Court held that it was directory. 16. However, the case on hand is entirely different. The test would be as to whether the provisions of Section 35AD of the Act would apply to specified business referred to in Sub-Section (2) if it commences operations and in the case of business like that of the assessee, on or after 01.4.2010, where specified business is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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