ACIT, CHENNAI V. KCP Sugars and Industries Corporation Limited, CHENNAI

ITA 1415/CHNY/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 95915 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2015
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 10-06-2015
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Assessee Lawyers: K R ADIVARAHAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : CHENNAI . . . , ! , ' #$ % [ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ] ./ I.T.A.NO.1415/MDS/2015 / ASSESSMENT YEAR : 2010-11 THE ASSTT. COMMISSIONER OF INCOME-TAX CORPORATE CIRCLE 4(2) CHENNAI VS. M/S KCP SUGARS AND INDUSTRIES CORPORATION LIMITED RAMAKRISHNA BUILDINGS NO.239, ANNA SALAI CHENNAI 600 006 [PAN AAACK 2325 F] ( &' / APPELLANT) ( ()&' /RESPONDENT) / APPELLANT BY : SHRI A.V.SREEKANTH, JCIT /RESPONDENT BY : SHRI K.R. ADIVARAHAN, CA / DATE OF HEARING : 06-08-2015 / DATE OF PRONOUNCEMENT : 21-08-2015 / O R D E R PER N.R.S.GANESAN, JUDICIAL MEMBER THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-8, CHENNA I, DATED 18.3.2015 AND PERTAINS TO ASSESSMENT YEAR 2010-11. ITA NO.1415/15 :- 2 -: 2. WE HEARD SHRI A.V.SREEKANTH, LD. DEPARTMENTAL REPRESENTATIVE AND SHRI K.R. ADIVARAHAN, LD. REPRES ENTATIVE FOR THE ASSESSEE. 3. THE ONLY ISSUE ARISES FOR CONSIDERATION IS DISALLOW ANCE OF DEDUCTION U/S 80IA OF THE ACT. 4. THE ASSESSEE CLAIMED DEDUCTION U/S 80IA OF THE AC T IN RESPECT OF POWER GENERATION UNITS LOCATED AT VUYYUR U AND LAKSHMIPURAM. THE ASSESSING OFFICER DISALLOWED THE CLAIM OF THE ASSESSEE ON THE GROUND THAT THE SPECIAL LEAVE PETIT ION FILED BY THE REVENUE AGAINST THE JUDGMENT OF THE MADRAS HIGH CO URT IN THE CASE OF M/S VELAYUDHASWAMY SPINNING MILLS P. LTD VS AC IT [2012] 340 ITR 477 IS PENDING BEFORE THE APEX COURT. HOWEVER, ON APPEAL BY THE ASSESSEE, THE CIT(A) ALLOWED THE CLAIM OF THE ASSE SSEE ON THE GROUND THAT THE JUDGMENT OF THE JURISDICTIONAL HIGH COURT IS BINDING UNLESS IT IS OVERRULED BY THE APEX COURT. BY FOLLOWING THE JUDG MENT OF THE JURISDICTIONAL HIGH COURT IN VELAYUDHASWAMY SPINNIN G MILLS P. LTD(SUPRA), THE CIT(A) ALLOWED THE CLAIM OF THE AS SESSEE. IT IS NOT THE CASE OF THE REVENUE THAT THE OPERATION OF THE JUDGM ENT OF THE JURISDICTIONAL HIGH COURT WAS STAYED BY THE APEX CO URT. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT A MERE PENDENCY O F SLP BEFORE THE APEX COURT CANNOT BE A REASON TO TAKE A CONTRARY VI EW. THE CIT(A), BY FOLLOWING THE BINDING JUDGMENT OF THE MADRAS HIG H COURT IN ITA NO.1415/15 :- 3 -: VELAYUDHASWAMY SPINNING MILLS P. LTD(SUPRA) HAS RIG HTLY ALLOWED THE CLAIM OF THE ASSESSEE. THEREFORE, THIS TRIBUNAL D O NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE CIT(A). ACCORDI NGLY, THE SAME IS CONFIRMED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST OF AUGUST, 2015, AT CHENNAI. SD/- SD/- ( ! ) (CHANDRA POOJARI) ' / ACCOUNTANT MEMBER ( . . . ! ) (N.R.S. GANESAN) / JUDICIAL MEMBER '# / CHENNAI $% / DATED: 21 ST AUGUST, 2015 RD %&'' ()'*) / COPY TO: ' 1 . / APPELLANT 4. ' + / CIT 2. / RESPONDENT 5. ),-' . / DR 3. ' +'/! / CIT(A) 6. -0'1 / GF