ACIT, Tuticorin V. M/s. Rose Matches Pvt. Ltd., Kovilpatti

ITA 1135/CHNY/2011

• Counselvise Citation: 113521714 RSA 2011
• Duration Of Justice: 2 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 05-09-2011
• Assessment Year: 2002-2003
• Appeal Filed On: 17-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S SRIDH
• Section: 80IA; 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER ITA NOS.1135, 1136 & 1137(MDS)/2011 ASSESSMENT YEARS: 2002-03, 2003-04 & 2004-05 THE ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE I, TUTICORIN. VS. M/S. ROSE MATCHES PVT. LTD., 43 MAIN ROAD, KOVILPATTI. PAN AABCR3125M. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SHA JI P JACOB, IRS, COMMISSIONER OF INCOME-TAX. RESPONDENT BY : SHRI S.SRIDH AR, ADVOCATE. DATE OF HEARING : 5 TH SEPTEMBER, 2011 DATE OF PRONOUNCEMENT : 5 TH SEPTEMBER, 2011 O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT: THESE THREE APPEALS ARE FILED BY THE REVENUE. TH E RELEVANT ASSESSMENT YEARS ARE 2002-03, 2003-04 AND 2004-05. THESE APPEALS ARE DIRECTED AGAINST THE COMMON ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX(APPEALS)-I AT MAD URAI DATED - - ITA NOS.1135 TO 1137 OF 2011 2 18-3-2011 AND ARISE OUT OF THE ASSESSMENTS COMPLETE D UNDER SECTION 143(3), READ WITH SECTION 147 OF THE INCOME -TAX ACT, 1961. 2. THE COMMON GROUNDS RAISED BY THE REVENUE IN THESE APPEALS ARE EXTRACTED BELOW:- 1. THE LEARNED CIT(A) OUGHT TO HAVE NOTED THAT AS PER SECTION 80IA(5), THE DEDUCTION SHOULD BE ALLOWED ON THE BASIS THAT THE ELIGIBLE BUSINESS IS THE ONLY SOURCE OF INCOME. IF IT IS SO, THERE WILL BE LOSSES IN THE WIND MILL UNIT IN THE EARLIER YEARS A ND IT SHOULD BE SET OFF AGAINST THIS YEARS PROFIT. T HEN THERE WILL BE NO POSITIVE INCOME AFTER SETTING OFF THE EARLIER YEARS LOSSES. 2. THE DECISION OF HONBLE MADRAS HIGH COURT IN THE CASE OF VELAYUTHASAMY SPINNING MILLS LTD. AND THE ASSESSEES OWN CASE RELIED UPON BY THE CIT(A) HAS NOT REACHED THE FINALITY. - - ITA NOS.1135 TO 1137 OF 2011 3 3. WE HEARD SHRI SHAJI P JACOB, THE LEARNED COMMISSIONER OF INCOME-TAX, APPEARING FOR THE REVEN UE AND SHRI S.SRIDHAR, THE LEARNED COUNSEL, APPEARING FOR THE RESPONDENT-ASSESSEE. 4. THE HONBLE JURISDICTIONAL HIGH COURT IN THE CA SE OF VELAYUDHASAMY SPINNING MILLS(P) LTD. VS. ACIT, 231 CTR (MAD) 368, HAS HELD THAT THE DEDUCTION UNDER SECTION 80IA HAS TO BE COMPUTED ON THE PROFITS OF THE ELIGIBLE BUSINESS OF THE ASSESSEE AS IF SUCH ELIGIBLE BUSINESS IS THE ONLY SOURCE OF INCOME OF THE ASSESSEE. 5. THE TRIBUNAL IN ASSESSEES OWN CASE HAD HELD TH E SAME VIEW AND THE SAID VIEW HAS BEEN UPHELD BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT, MADUR AI VS. M/S. ROSE MATCHES PVT. LTD., THROUGH THE JUDGMENT OF THE IR LORDSHIPS DATED 3-8-2010 IN TC(A) NO.705/2010. 6. THEREFORE, IN THE FACTS AND CIRCUMSTANCES OF TH E CASE, THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS T AKEN A VIEW, WHICH IS THE ONLY VIEW PERMISSIBLE TO HIM UND ER LAW. 7. IN RESULT THESE APPEALS FILED BY THE REVENUE AR E LIABLE TO BE DISMISSED. - - ITA NOS.1135 TO 1137 OF 2011 4 ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON MONDAY, THE 5 TH OF SEPTEMBER, 2011 AT CHENNAI. SD/- SD/- (HARI OM MARATHA) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 5 TH SEPTEMBER, 2011. V.A.P. COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT (4) CIT(A) (5) D.R. (6) G.F.