9911796707
TMI Blog2008 (6) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income Tax Act, 1961 ("the Act", hereinafter). It is submitted that the petitioner is running a hotel in Surat and the respondent is the prescribed authority who approves Hotels for the purpose of section 80-IA (4) (iii) of the Act read with rule 18BBC of the Income Tax Rules, 1962 ("the Rules", hereinafter). If the petitioner hotel is approved by the respondent under the aforesaid provisions, then the petitioner will get relief at the specified rate in respect of the profit earned from the hotel. The petitioner made an application for approval of its hotel under the aforesaid provisions. The relevant portion of the section and the rule are quoted hereunder : "Section 80-IA.(1). Where the gross total income of an assessee includes any profits and gains derived from any business of an industrial undertaking or a hotel or.... to which this section applies, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction from such profits and gains of an amount equal to the percentage specified in sub-section (5) and for such number of assessment years as is specified in sub-section (6). (2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iii) of the said sub-section (4).; (b) there are not more than 300 hotel rooms of 3-star category and above in the aggregate, in areas or places specified under clause (iii) of the said sub-section (4) within the jurisdiction of the revenue sub-division in which the hotel is located ; (c). in case the hotel is located in a place where there is need for development of infrastructure for tourism, such place has been specified by the Central Government under clause (iii) of the said sub-section (4) on the recommendations of the Department of Tourism." 3. As per the say of the petitioner, the petitioner made an application for exemption as the petitioner Hotel is located at a place of pilgrimage as required under section 80-IA (4) (iii) of the Act since the Hotel is situated at Surat which is an important place of pilgrimage to various sections of the society, more particularly Parsis. It is also the case of the petitioner that the condition of not having more than 300 hotel rooms of 3 star category and above is also fulfilled in the present case. The petitioner has also sent a certificate to the respondent issued by the Director, Tourism, Gujarat Government dated 18.06.96. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Rent concession has been offered for Parsi tourists specifically. Fifth, no rooms have been specifically reserved for such Parsi Tourists. On this account also, it is held that this Hotel does not promote pilgrimage tourism. Notifying such a hotel Under section 80-IA (4) (iii) would not serve the purpose visualised herein. 6. Keeping in view these facts the hotel does not deserve benefit of Section 80-IA (4) (iii) of the Income-Tax Act. The application filed by the applicant is rejected/filed." 4. It is submitted by the learned advocate for the petitioner that whoever wants exemption must fulfill all the conditions as laid down under the Act and the Rules, and if conditions are fulfilled, then the exemption is required to be given. In the order passed by the respondent, it is not stated by the respondent that the petitioner has not fulfilled any of the conditions as laid down under the Act and the Rules. The respondent, on the contrary, considered irrelevant and extraneous factors while rejecting the application preferred by the petitioner. Even the provisions contained in the Act as well as the Rules were not interpreted by the respondent in proper perspective. Thus, the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the Central Government. The provisions of Section 80-IA (4) (iii) of the Act provide for the Central Government to specify a hotel for the purposes of the said clause while the prescribed authority enters the picture only in clause (v) of sub-section (4) of Section 80-IA of the Act. Similarly, under Rule 18BBC (1)(a) of the Rules, the prescribed authority shall grant approval on the concurrence of the Director General in the Directorate General of Tourism, Government of India. Therefore, under sub-rule (2) of Rule 18BBC, the prescribed authority is only required to consider whether the conditions stipulated in clauses (a), (b) and (c) of the said sub-rule stand satisfied. The prescribed authority has no further discretion once the conditions are shown to have been satisfied. 9. The petitioner firm made an application to the respondent for granting approval of its Hotel at Surat under section 80-IA (4) (iii) of the Act. Director of Tourism, Government of Gujarat has issued certificate dated 18th June 1996 for the purpose of grant of approval under section 80-IA (4) (iii) of the Act to the effect that the hotel complies with the conditions stipulated for grant of the said bene ..... X X X X Extracts X X X X X X X X Extracts X X X X
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