COMMISSIONER OF INCOME TAX Vs. ORIENTAL HOTELS LTD

JUDGEMENT

(1.) This tax appeal is preferred against the order of the Income Tax Appellate Tribunal, Madras 'B' Bench, dated 26.7.13 in ITA No.1449/Mds/2011.

(2.) The Revenue is aggrieved by the order passed by the Income Tax Appellate Tribunal on the following substantial question of law :-

(3.) The respondent assessee is running a hotel business. The Assessing Officer passed an order under Section 154 of the Income Tax Act for the assessment year 1999-2000 to rectify the mistake apparent from the record and the Assessing Officer found a mistake, in that while computing deduction under Section 80 HHD of the Act, in the denominator (total receipts) the total taxes (expenditure tax, luxury tax and sales tax) should have been included and were not included in the earlier order and after giving opportunity to the assessee, the Assessing Officer rectified the earlier order and recomputed the deduction under Section 80 HHD of the Act by including the total taxes, viz., expenditure tax, luxury tax and sales tax claimed in Rupees and foreign exchange in the denominator (total receipts). Aggrieved by the order, the assessee preferred an appeal to the Commissioner of Income Tax (Appeals), who allowed the said appeal relying upon a judgment of this Court in CIT Vs Adyar Gate Hotels Ltd., 2007 293 ITR 86.