Ajit Kumar Sengupta, J. - (1.) The petitioner is the owner of Oberoi Inter-Continental Hotel. The petitioner made an application on October 11/15, 1969, for approval under Section 84(3)/80J of the Income-tax Act, 1961, regarding Oberoi Inter-Continental Hotel. On June 10, 1970, the Central Government granted approval to Oberoi Inter-Continental Hotel for the purpose of Section 80J(6)(d) of the Act. The Income-tax Officer made the original assessment for the assessment year 1967-68 under Section 143(3)on March 24, 1972. The Income-tax Officer in the assessment held that the petitioner had fulfilled the conditions laid down in Section 84 of the Act and accordingly relief under that section would be available to the petitioner. The assessee preferred an appeal before the Appellate Assistant Commissioner in respect of the points where Income-tax Officer held against the petitioner. The Appellate Assistant Commissioner, however, set aside the assessment on November 30, 1973. On February 19, 1977, the petitioner made an application to the Secretary, Ministry of Tourism, for approval under Section 84(3) of the Act. The petitioner also made a similar application on February 23, 1977, to the Secretary, Ministry of Finance. The applications are in identical terms which are, inter alia, to the following effect 3 "We have received approval under Section 80J(6)(d) of the Income-tax Act, 1961, of our 'Hotel Oberoi Inter-Continental', vide letter No. F.No. 15/18/69-IT(AI), dated June 10, 1970, issued by Sri L. N. Gupta, Under Secretary to the Government of India, Ministry of Finance (Department of Revenue & Insurance), a copy of which is enclosed herewith. It will be evident from the copy of the said letter that 'Hotel Oberoi Inter-Continental' has been approved for the purpose of Clause (d) of Sub-section (6) of Section 80J of the Income-tax Act. It may be noted here that Section 80J of the Income-tax Act is applicable from the assessment year 1968-69, as the said section has been brought into force with effect from April 1, 1968, and prior to that, Section 84 of the Income-tax Act was applicable to the business of the hotel. We have claimed before the Income-tax Officer deduction on account of tax holiday profits both under Section 84 of the Income-tax Act as well as under Section 80J of the said Act from the assessment year 1967-68 onwards. Deduction claimed under Section 84 has been proposed to be denied by the Income-tax Officer on the ground that your approval does not specifically state that the said hotel is also approved under Section 84(3) of the Act. It may please be noted that Clause (d) of Sub-section (3) of Section 84 of the Income-tax Act has been replaced by Clause (d) of Sub-section (6) of Section 80J of the Income-tax Act, and since both the relative provisions are one and the same, your approval under Section 80J(6)(d) should also be considered as an approval under Section 84(3)(d). In the circumstances, we request you to kindly confirm the contention as correct and/or modify your order so as to consider your approval as an approval under Section 84(3)(d) also."
(2.) On October 18, 1977, the Under Secretary of the Central Board of Direct Taxes informed the petitioner that the Board "regrets its inability to accede to your request in the matter". Thereupon, the petitioner made a representation to the Chairman, Central Board of Direct Taxes on November 26, 1977. It has been stated in the said representation that the petitioner has complied with all the conditions laid down in Section 80J as well as Section 84(3) and accordingly there was no logical ground for rejection of the application of the petitioner for approval under Section 84(3)(d), In the said letter, the petitioner, inter alia, stated as follows : "We, therefore, request you to look into the matter and reconsider the application as we feel that it is wholly unjustified to summarily reject the application for approval of the ' Hotel Oberoi Inter-Continental' under Section 84(3)(d) when there is no change either in substance or in the words in the provision of Sub-section (3) of Section 84 of the Income-tax Act, 1961, and the provision of Sub-section (6) of Section 80J of the Income-tax Act. We hope that after reconsideration of the matter, you will be kind enough to grant approval of the application under Section 84(3)(d) of the Income-tax Act. However, if you want to reject this application again, we would request you to please give us an opportunity to represent the case by us on behalf of the company."
(3.) Thereafter, a reminder was sent to the Secretary, Central Board of Direct Taxes, on July 22, 1978, but no reply was received.;