I.T.A. No. 332 of 2009 (1) IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH I.T.A. No. 332 of 2009 DATE OF DECISION: 23.7.2009 Commissioner of Income Tax, Chandigarh-II ..........Appellant Versus M/s R.P.S. Hotels(P) Ltd., SCO 433-36, ..........Respondent Sector 35-C, Chandigarh CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MRS. JUSTICE DAYA CHAUDHARY Present:- Ms. Urvashi Dhugga, Advocate for the appellant. **** ADARSH KUMAR GOEL, J. (Oral) 1. The revenue has preferred this appeal under Section 260-A of the Income Tax Act, 1961 (for short, “the Act”) against the order of the Income Tax Appellate Tribunal, Chandigarh Bench-A dated 31.5.2005 passed in ITA No. 249/Chandi/2003 for the assessment year 1999-200, proposing to raise following substantial question of law:- “Whether on the facts and in the circumstances of the case and in law, the order of the ITAT is perverse as the ITAT has failed to appreciate the fact that the CIT(A) restricted the food cost ratio to 55% only on conjectures and surmises and without any evidence, whereas the Assessing Officer had based its order on the basis of results of 16 hotels/restaurants.” 2. The assessee is running a hotel. The assessee claimed cost I.T.A. No. 332 of 2009 (2) of raw material for the food, which was found by the Assessing Officer to be excessive having regard to the prevalent norms in hotel business. The Assessing Officer accordingly made addition to the declared income. The CIT(A) deleted the addition by holding that in the absence of any specific material, books of accounts should be accepted. This view has been upheld by the Tribunal. 3. Learned counsel for the revenue fairly states that appeal of the revenue against order of the Tribunal in the case of M/s Dua & Associates, which has been followed in the present case, has been dismissed by this Court being I.T.A. No. 496 of 2005 (The Commissioner of Income Tax-II, Chandigarh Vs. M/s Dua & Associates (P) Ltd., Chandigarh) and ITA No. 557 of 2005 (M/s Dua & Associates (P) Ltd., Chandigarh Vs. The Commissioner of Income Tax-II, Chandigarh) on 12.3.2008. 4. In view of above, this appeal is dismissed. (ADARSH KUMAR GOEL) JUDGE July 23, 2009 (DAYA CHAUDHARY) pooja JUDGE Note:-Whether this case is to be referred to the Reporter .......Yes/No