COMMISSIONER OF INCOME TAX Vs. ITC HOTELS

JUDGEMENT

(1.) This income-tax appeal is against the order dated February 12, 2007, rendered by the Income-tax Appellate Tribunal, Bangalore Bench "A" (for short "the Tribunal") in I.T.A. No. 365/Bang/2005, pertaining to the assessment year 1998-99, whereby the Tribunal allowed the appeal in part to the extent indicated therein. The appeal before the Tribunal was directed against the order dated December 10, 2004, passed by the Commissioner of Income-tax (Appeals)-I, (for short "the first appellate authority or FAA"). The Tribunal by its order dated February 12, 2007, disposed of two income-tax appeals, bearing Nos. I.T.A. Nos. 364 and 365/2005, pertaining to the assessment years 1995-96 and 1998-99. In the present appeal, we are concerned only with the order of the Tribunal in I.T.A. No. 365 of 2005. The first appellate authority, vide his order dated December 10, 2004, dismissed the appeal filed by the respondent-assessee bearing I.T.A. No. 481/AC-11(2)/CIT(A)I/01-02. The appeal before the first appellate authority was directed against the order dated April 20, 2001, passed by the Joint Commissioner of Income-tax, Special Range-5, Bangalore (for short "the Assessing Officer" or "the AO") under section 143(3) of the Income-tax Act, 1961 (for short "the Act").

(2.) This court, vide its order dated January 8, 2008, had passed the following order:

(3.) Thus, the appeal was admitted to consider the following substantial questions of law: