The High Court of Kerala dismissed an appeal against the Income Tax Appellate Tribunal's decision disallowing deductions under Sections 80HHD, 80IB, and 80IA for a hotel business, relying on a prior judgment involving the same assessee.
Appeal dismissed in favor of the Revenue.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HON'BLE THE CHIEF JUSTICE DR. MANJULA CHELLUR & THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE
FRIDAY, THE 7TH DAY OF MARCH 2014/16TH PHALGUNA, 1935
ITA.No. 261 of 2013
ITA NO. 552/COCH/2006 OF INCOME TAX APPELLATE TRIBUNAL ,COCHIN BENCH DATED 25-10-2012.
APPELLANT/APPELLANT/APPELLANT:
M/S.HOTEL & ALLIED TRADES PVT. LTD., C/O.CASINO HOTEL, W/ISLAND, COCHIN-3.
BY ADVS.SRI.JOSEPH MARKOSE (SR.) SRI.V.ABRAHAM MARKOS SRI.BINU MATHEW SRI.TOM THOMAS (KAKKUZHIYIL) SRI.ABRAHAM JOSEPH MARKOS SRI.ABRAHAM VARGHESE THARAKAN
RESPONDENT/RESPONDENT/DEPARTMENT
1. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1 (1), ERNAKULAM 682 018.
2. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1 (1), RANGE 1, ERNAKULAM 682 018.
BY SRI.JOSE JOSEPH, SC
THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 07-03-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
Msd.
ITA.No. 261 of 2013
APPENDIX
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PETITIONER(S)' ANNEXURES:
ANNEXURE A: A TRUE COPY OF THE ASSESSMENT ORDER DATED 31.01.2003. ANNEXURE B: A TRUE COPY OF THE ORDER PASSED IN THE APPEAL DATED 08.09.2008 OF THE COMMISSIONER OF INCOME TAX (APPEALS)-II. ANNEXURE C: A TRUE COPY OF THE ORDER DATED 25.10.2012 PASSED BY THE ITAT IN ITA NO.552/COCH/2006.
RESPONDENT(S)' ANNEXURES:
NIL
//TRUE COPY//
P.A.TO JUDGE.
Msd.
Manjula Chellur, C.J. & A.M. Shaffique, J.
I.T.A. No. 261 OF 2013
JUDGMENT
Manjula Chellur, C.J.
The following substantial questions of law arise for consideration in this appeal:
“1. Is not deduction under Section 80 HHD and 80IB allowable on the basis of the turnover, foreign exchange earnings and profits of each eligible units instead of on the basis of total turnover and foreign earnings of all units together disregarding the eligibility in the facts and circumstances of the case.
ITA No. 261 of 2013
-:2:-
ITA No. 261 of 2013
-:3:-
Income Tax [2014 361 ITR 184(Ker.)] pertaining to the very same assessee, this appeal is dismissed, in favour of the Revenue.
Manjula Chellur, Chief Justice.
A.M. Shaffique, Judge.
ttb/07/03
3 issues framed by the court
Whether deduction under Section 80HHD and 80IB is allowable based on eligible units' turnover instead of total turnover of all units.
Whether the Tribunal was justified in interpreting Section 80HHD and 80IB to require profits of the entire business for deduction computation.
Whether the Tribunal was justified in sustaining the computation made by authorities for deductions under Section 80HHD and 80IA.
Colour shows how this judgement treated each authority
294 ITR 67Relied on¶39
Hotel and Allied P. Ltd. v. Deputy Commissioner of Income TaxFollowed¶39
Hotel and Allied P. Ltd. v. Deputy Commissioner of Income Tax [2014 361 ITR 184(Ker.)]
3 provisions across 1 enactments
M/S. Hotel & Allied Trades Pvt. Ltd.
The Deputy Commissioner of Income Tax, Circle 1(1), Ernakulam
The Assistant Commissioner of Income Tax, Circle 1(1), Range 1, Ernakulam
Manjula Chellur
A.M. Shaffique
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
