Grand Legacy Vs DCIT (ITAT Dehradun)
Summary: The Dehradun Bench of the Income Tax Appellate Tribunal considered an appeal filed by Grand Legacy against the order dated 19.09.2025 passed by the Commissioner of Income Tax (Appeals), NFAC, Delhi, under Section 250 of the Income Tax Act, 1961. The appeal arose from the assessment order dated 26.03.2021 passed under Section 143(3) read with Sections 143(3A) and 143(3B) for Assessment Year 2018-19.
The assessee had claimed deduction under Section 80-IC of the Act. The Assessing Officer disallowed the deduction on the ground that the assessee had not fulfilled the prescribed conditions for claiming the deduction. The assessee had established a new undertaking in the shape of a hotel and claimed the deduction, which was disallowed on the ground that it had not established an eco-friendly hotel.
The assessee had also been entitled to three types of subsidy, namely, State Government subsidy on capital investment, exemption from luxury tax for a certain period, and Central Government subsidy on account of deduction under Section 80-IC. Following the disallowance of the deduction, the Assessing Officer initiated penalty proceedings. The penalty proceedings were initiated through a notice under Section 274 read with Section 270A dated 26.03.2021.
