ORIENTAL HOTELS LTD Vs. INSPECTING ASSISTANT COMMISSIONER OF INCOME TAX ASST
INCOME TAX APPELLATE TRIBUNAL
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(1.) THIS appeal by the assessee is directed against the order in revision passed by the Commissioner of Income-tax, Tamil Nadu-III, Madras, on January 15, 1987, in relation to the assessment year 1983-84. Two issues arise for consideration in this appeal and they are : (a) whether the assessee-hotel is entitled to extra depreciation under Appendix I, Part I, item No. III(iii) to the Income-tax Rules, 1962, and (b) whether the assessee is entitled to extra shift allowance in respect of plant and machinery.
(2.) When this appeal came up earlier for hearing before a Division Bench, the learned Members of that Bench were of the opinion that the appeal is a fit and proper appeal which should be heard by a Special Bench consisting of three Members of the Tribunal, in view of the fact that the decision of the Income-tax Appellate Tribunal, Madras Bench-C, in the case of M/s. Covelong Beach Hotel (India) Ltd., Madras (vide order dated July 17, 1986, in I.T.A. No. 1871/Mds/85 : assessment year 1982-83 ), to the effect that the assessee-hotel therein was not entitled to extra depreciation, required reconsideration. They, therefore, placed this appeal before the President of the Income-tax Appellate Tribunal with a request to constitute a larger Bench. It is in these circumstances that this appeal has come up before this Bench of three Members.
The assessee, a company in which public are substantially interested, runs a hotel called " Hotel Taj Coromandel" at Madras. The assessment year is 1983-84, the year of account ending on June 30, 1982, being the relevant previous year.
(3.) FOR the said assessment year, the assessee originally filed a return of income on June 28, 1983, declaring an income of Rs. 73,70,688 "subject to carry forward of unabsorbed losses, depreciation and development rebate and investment allowance". Some time in September, 1983, the assessee filed a revised return of income, disclosing this time an income of Rs. 64,18,931, subject to set off of past losses, depreciation, etc.;
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