Jainendra Kumar Ranka, J. - (1.) All these petitions are directed against order dt 5.10.2009 passed by Rajasthan Tax Board, Ajmer, whereby the appeals filed by the respondent assessee were allowed. It relates to assessment years 1997-98 to 2002-03.
(2.) Brief facts are that the respondent is running a Guest House mainly for the purposes of weddings and other functions having a Lawn, which is part of the estate which is let out. It was noticed by the Assessing Officer that the assessee had received amounts relating to bookings of rooms and also for renting/leasing out "Lawn". However, insofar as the amount received for letting out rooms is concerned, it was held to be exempt but the AO was of the prima facie view that insofar as the amounts received for letting/leasing out of "Lawn" is concerned, it is to be taxed under the Rajasthan Tax on Luxuries (in Hotels & Lodging Houses) Act, 1990, and accordingly a show cause notice was given.
(3.) On behalf of the assessee it was contended that it does not fall within the provisions of the Act as it is not a luxury hotel and merely few rooms, that too occasionally, are booked and even the Lawn is let out along with the rooms, and even the rent/tariff is nominal and within the prescribed limit of Rs.750/- per day. However, the AO was not satisfied and held that insofar as the Lawn is concerned, it is to be taxed @ 6% and simultaneously the AO charged interest and penalty u/s 21(2) and 21(5) of the Act.;