H.N.Seth, J. - (1.) At the instance of the assessee, M/s. U. P. Hotel & Restaurants Ltd., Varanasi, the Income-tax Appellate Tribunal, Allahabad, has, for the assessment year 1972-73, the previous year for which ended on 30th September, 1971, stated the case and referred the following two questions for the opinion of this court : "1. Whether, on the facts and in the circumstances of the case, the assessee was entitled 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 ?"
(2.) 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 Section 80J in respect of the capital employed by it in the new wing. The ITO disallowed the relief under Section 80J claimed by the assessee on the ground that the business in respect of the new wing had not been recognised by 'the Central Govt. In appeal, the AAC observed that as the population of Agra exceeded five lakhs, the benefit of Section 80J could be given to the assessee only if the new wing added by it to Hotel Clarks Shiraj had fifty separate guest rooms with attached bathrooms equipped with sanitary fittings, etc. Since the wing had only forty rooms, the assessee was not entitled to any relief in respect thereof under Section 80J of the Act.
(3.) The assessee then went up in appeal before the Income-tax Appellate Tribunal, Allahabad, which following its own decision for the earlier years, affirmed the disallowance of the relief claimed by the assessee.;