Hotel and Restaurant Association Vs ITO (ITAT Mumbai)
Re-examination of Section 11 Deduction for Hotel and Restaurant Association
This order relates to an appeal filed by the Hotel and Restaurant Association challenging an order passed under Section 250 of the Income Tax Act, 1961, by the National Faceless Appeal Centre, Delhi / CIT(A), for the Assessment Year 2016-17. The main issue in the appeal is the disallowance of deduction claimed by the appellant under section 11 of the IT Act.
The assessee argued that the CIT(A) did not properly consider the facts, grounds of appeal, and written submissions presented during the appeal proceedings. The Income Tax Appellate Tribunal (ITAT) noted that the assessee had provided detailed explanations and evidence regarding their activities, including those for charitable purposes and for the benefit of the general public, but the AO and CIT(A) did not conduct a thorough verification. The ITAT concluded that the issue was factual in nature and required detailed verification of the assessee’s activities. Therefore, the tribunal restored the matter to the CIT(A) for a fresh decision on merits, with an opportunity for both parties to be heard and for additional evidence to be considered. The appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
