Kerala High Court
Anjali Hotels Private Ltd. vs Commissioner Of Income-Tax on 12 June, 1987
Equivalent citations: [1988]170ITR419(KER)
Author: K.S. Paripoornan
Bench: K.S. Paripoornan
JUDGMENT K.S. Paripoornan, J.
1. The petitioner is a private limited company. It is an assessee to income-tax. It is carrying on the business of running a hotel. The respondent is the Revenue. For the assessment year 1979-80, the Income-tax Officer determined the balance taxable income of the petitioner at Rs. 56,700. He levied income-tax at the rate of 65% under Paragraph E, Clause 2(ii) of the First Schedule to the Finance Act, 1979. The plea of the petitioner that they could be taxed only at the lower rate of 55% under Paragraph E, Clause 2(i)(a) as an industrial company as defined in Section 2(7)(c) of the said Finance Act, was negatived. The Commissioner of Income-tax (Appeals), as also the Income-tax Appellate Tribunal affirmed the said decision. They followed the decision of the earlier Division Bench of this court in CIT v. Casino (Pvt.) Ltd., [1973] 91 ITR 289 and held that the petitioner is not an industrial company entitled to the lower rate of tax. The petition, filed under Section 256(1) of the Income-tax Act to refer a question of law formulated by the petitioner, was rejected. The assessee has filed this petition under Section 256(2) of the Act. He prays that the Income-tax Appellate Tribunal may be directed to refer the following question of law for the decision of this court:
" Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was legally correct in holding that the assessee-company was not an ' industrial company ' within the meaning of Section 2(7)(c) of the Finance Act, 1979 ?"
2. We heard counsel for the petitioner, Mr. Vellappally, as also counsel for the Revenue. It is agreed that the Division Bench decision of this court in Casino (Pvt.) Ltd.'s case [1973] 91 ITR 289 squarely applies to this case. But it was argued that the said decision requires reconsideration in view of the later decisions of courts. Our attention was not invited to any decision which has taken a different view or has dissented from the decision of this court in Casino (Pvt.) Ltd.'s case [1973] 91 ITR 289. On the other hand, a Division Bench of the Madras High Court in CIT v. Buhari Sons Pvt. Ltd., [1983] 144 ITR 12 has applied the dictum laid down by this court in Casino (Pvt.) Ltd.'s case [1973] 91 ITR 289 and held that a hotel is not an industrial company. The question posed for consideration is fully covered by the Division Bench decision of this court in Casino (Pvt.) Ltd.'s case [1973] 91 ITR 289 which was followed by another Division Bench of the Madras High Court in Buhari Sons Pvt. Ltd.'s case [1983] 144 ITR 12. We fully concur with the said decisions.
3. In this view of the matter, we do not find any reason to direct the Appellate Tribunal to refer the question of law formulated by the petitioner (quoted above) for the decision of this court. This original petition is dismissed.