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TMI Blog1980 (10) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... titled to relief under section 80J of the Income-tax Act, 1961, in respect of the new wing added in the hotel ? 2. Whether, on the facts and in the circumstances of the case, an appeal is maintainable against an order directing the levy of interest under section 215 of the Act?" Briefly stated, the facts giving rise to the first question are that the assessee is a limited company which derives income from a five star hotel known as Hotel Clarks Shiraj at Agra. The assessee commenced the aforesaid hotel business at Agra some time after the year 1961. During the years 1969 and 1970 it added a new wing to the Hotel Clarks Shiraj employing a capital of Rs. 16,35,088. In the relevant assessment year, the assessee claimed benefit under s. 80J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fulfilled, namely: (a) the business of the hotel starts functioning on or after the 1st day of April, 1961, and is not formed by the splitting up or the reconstruction, of a business already in existence or by the transfer to a new business of building previously used as a hotel or of any machinery or plant previously used for any purpose; (b) the business of the hotel is owned and carried on by a company registered in India with a paid-up capital of not less than five hundred thousand rupees ; (c) the hotel has such number and types of guest rooms and provides such amenities as may be prescribed, having regard to the population and the tourist importance of the place in which the hotel is located ; and (d) the hotel is for the time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by it consisted of only forty rooms, there were about one hundred rooms more in the Hotel Clarks Shiraj and, as such, the addition of forty rooms meant that the assessee's hotel now has as many as one hundred and forty rooms. The assessee is, therefore, entitled to the relief claimed under s. 80J. We are unable to accept this submission. The benefit under s. 80J is available in respect of a business of the nature specified in the section which is commenced after April, 1961. The assessee is separately entitled to the benefit under this section in respect of each and every such business which it commences after April, 1961. If the period during which the benefit under s. 80J is available for a hotel business is over and the assessee mere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pect of the new wing constructed by the assessee, it is not entitled to claim benefit under s. 80J for the capital employed by it in respect of that wing. The first question, therefore, has to be answered in the negative and in favour of the revenue. So far as the second question is concerned, it has been held by a Full Bench of this court in the case of CIT v. Geeta Ram Kali Ram [1980] 121 ITR 708 that no appeal lies against an order directing levy of penal interest under s. 215 of the I.T. Act. The second question is accordingly answered in the negative and in favour of the revenue. In the result both the questions referred to us are answered in the negative and in favour of the revenue. The Commissioner shall be entitled to costs whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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