DCIT, Tiruppur V. SCM Garments Pvt Limited, Tiruppur

ITA 1312/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 8075 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-11-2016
• Appeal Filed By: Department
• Bench Allotted: C
• Next Hearing Date: 24-10-2016
• Assessment Year: 2012-2013
• Appeal Filed On: 11-05-2016
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Assessee Lawyers: S SWAMINATHAN
• Keywords: Business income

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : CHENNAI . . . , . . ' # $ , % &' ( [ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI D. S. SUNDER SINGH, ACCOUNTANT MEMBER ] ./ I.T.A.NO.1312/MDS/2016 / ASSESSMENT YEAR : 2012-13 THE DY. COMMISSIONER OF INCOME-TAX CIRCLE I TIRUPUR VS. M/S SCM GARMENTS PVT. LTD NO.57, V.O.C. NAGAR (SOUTH) VALAYANKADU, TIRUPUR 641 603 [PAN AAJCS 7850 A ] ( )* / APPELLANT) ( +,)* /RESPONDENT) / APPELLANT BY : SHRI A.V. SREEKANTH, JCIT /RESPONDENT BY : SHRI S. SWAMINATHAN, CA / DATE OF HEARING : 24 - 10 - 2016 ! / DATE OF PRONOUNCEMENT : 10 - 11 - 2016 / O R D E R PER D.S. SUNDER SINGH, ACCOUNTANT MEMBER THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-3, COIMBA TORE, DATED 16.11.2015 FOR ASSESSMENT YEAR 2012-13. 2. THERE WAS A DELAY OF 81 DAYS IN FILING THIS APPEAL BY THE REVENUE. THE REVENUE HAS FILED A PETITION FOR COND ONATION OF DELAY. WE HAVE HEARD THE LD. DR AND THE LD. AR. WE FIND T HAT THERE WAS ITA NO. 1312/16 :- 2 -: SUFFICIENT CAUSE FOR NOT FILING THE APPEAL WITHIN T HE STIPULATED TIME. THEREFORE, WE CONDONE THE DELAY AND ADMIT THE APPEA L. 3. ALL THE GROUNDS OF APPEAL ARE RELATED TO THE DISALL OWANCE OF DEDUCTION U/S 80IA OF THE INCOME-TAX ACT, 1961 (IN SHORT THE ACT) RELATING TO BROUGHT FORWARD BUSINESS LOSS AMOUNTING TO ` 5,23,12,459/-. 4. DURING ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICE R FOUND THAT THE ASSESSEE HAS CLAIMED DEDUCTION OF ` 5,23,12,459/- U/S 80IA OF THE ACT. THE ASSESSING OFFICER INVOKED THE PROV ISIONS OF SEC. 80IA(5) AND DISALLOWED THE NOTIONAL LOSS OF EARLIER YEARS WHICH WAS BEING SET OFF AGAINST THE BUSINESS INCOME. 5. ON APPEAL, THE CIT(A) ALLOWED THE ASSESSEES CLAIM BY PLACING RELIANCE ON THE JUDGMENT OF THE MADRAS HIGH COURT IN THE CASE OF VELAYUDHASWAMY SPINNING MILLS (P) LTD VS ACIT, [ 2012] 340 ITR 477. 6. SINCE THE ISSUE IS COVERED IN FAVOUR OF THE ASSESS EE BY THE JUDGMENT OF THE MADRAS HIGH COURT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD.(SUPRA), WE DO NOT FIND ANY REASON TO INTER FERE WITH THE ORDER OF THE CIT(A) AND ACCORDINGLY UPHOLD THE SAME. ITA NO. 1312/16 :- 3 -: 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON 10 TH NOVEMBER, 2016, AT CHENNAI. SD/- SD/- ( . . . ' ) (N.R.S. GANESAN) / JUDICIAL MEMBER ( . . ' # $ ) (D.S. SUNDER SINGH) % / ACCOUNTANT MEMBER #$ / CHENNAI %& / DATED: 10 TH NOVEMBER, 2016 RD &' ()*) / COPY TO: 1 . / APPELLANT 4. + / CIT 2. / RESPONDENT 5. ),- . / DR 3. +/' / CIT(A) 6. -01 / GF