JCIT, CHENNAI V. Chettinad Morimura Semiconductor Material Pvt Ltd., Kancheepuram

ITA 1537/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 8300 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 27-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V NANDA KUMAR
• Assessee Lawyers: K B MURALIDHARAN
• Keywords: Business income; Depreciation

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , . !'# ! , % !& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO. 1537/MDS/2016 ( )( / ASSESSMENT YEAR : 2010-11 THE JOINT COMMISSIONER OF INCOME TAX (OSD), CORPORATE CIRCLE 1(2), CHENNAI - 600 034. V. M/S CHETTINAD MORIMURA SEMICONDUCTOR MATERIAL PVT. LTD., NO.37, OLD MAHABALIPURAM ROAD, KAZHIPATTUR VILLAGE, KANCHIPURAM 603 103. PAN : AAACC 2461 Q (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANT BY : SHRI V. NANDA KUMAR, JCIT -.+, / 0 / RESPONDENT BY : SHRI K.B. MURALIDHARAN, CA 1 / 2% / DATE OF HEARING : 16.08.2016 3') / 2% / DATE OF PRONOUNCEMENT : 30.09.2016 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) 1, CHENN AI, DATED 11.02.2016 AND PERTAINS TO ASSESSMENT YEAR 2010-11. 2 I.T.A. NO.1537/MDS/16 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS WITH REGARD TO DEPRECIATION CLAIMED BY THE ASSESSEE ON THE WINDMIL L. 3. SHRI V. NANDA KUMAR, THE LD. DEPARTMENTAL REPRES ENTATIVE, SUBMITTED THAT THE ASSESSING OFFICER DISALLOWED THE CLAIM OF THE ASSESSEE ON THE GROUND THAT THE ASSESSEE HAS ADJUST ED THE PREVIOUS YEAR LOSS FROM THE WINDMILL AGAINST THE IN COME FROM OTHER BUSINESS. SUBSEQUENTLY, THE PROFIT FROM THE WINDMI LL IS ALSO CLAIMED AS DEDUCTION AGAINST OTHER BUSINESS INCOME BY WHICH THE INCOME FROM OTHER BUSINESS IS REDUCED. THEREFORE, ACCORDI NG TO THE LD. D.R., THE ASSESSING OFFICER FOUND THAT THE ASSESSEE CANNOT HAVE DOUBLE BENEFIT BY ADJUSTING THE DEPRECIATION LOSS B Y THE ELIGIBLE BUSINESS AGAINST THE INCOME OF THE TAXABLE BUSINESS . REFERRING TO THE JUDGEMENT OF MADRAS HIGH COURT IN VELAYUDHASWAM Y SPINNING MILLS (P) LTD. V. ACIT (2012) 340 ITR 477, THE LD. D.R. SUBMITTED THAT THE REVENUE HAS ALREADY FILED AN APPEAL IN THE SUPREME COURT AGAINST THE JUDGEMENT OF MADRAS HIGH COURT. THEREF ORE, THE ASSESSING OFFICER HAS NOT FOLLOWED THE JUDGEMENT OF MADRAS HIGH COURT. ON A QUERY FROM THE BENCH, WHEN THE CBDT IN STRUCTED ITS OFFICERS TO WITHDRAW ALL THE APPEALS FILED AGAINST THE JUDGEMENT OF MADRAS HIGH COURT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD. AND 3 I.T.A. NO.1537/MDS/16 DIRECTED THE OFFICERS TO ACCEPT THE MADRAS HIGH COU RT JUDGEMENT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD., HOW THE APP EAL IS MAINTAINABLE BEFORE THIS TRIBUNAL? THE LD. D.R. CO ULD NOT CLARIFY ANYTHING. 4. WE HEARD SHRI K.B. MURALIDHARAN, THE LD. REPRESE NTATIVE FOR THE ASSESSEE ALSO. THE ADJUSTMENT OF DEPRECIATION LOSS WAS THE SUBJECT MATTER OF DISCUSSION BEFORE THE MADRAS HIGH COURT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD. (SUPRA). TH E MADRAS HIGH COURT FOUND THAT THE ADJUSTMENT AS CLAIMED BY THE A SSESSEE MAY BE ALLOWED AND THE DEPRECIATION CAN BE SET OFF. ADMIT TEDLY, THE REVENUE HAS FILED APPEAL BEFORE THE APEX COURT AGAI NST THE JUDGEMENT OF MADRAS HIGH COURT IN VELAYUDHASWAMY SP INNING MILLS (P) LTD. (SUPRA). RECENTLY, THE CBDT HAS DIRECTED ITS OFFICERS TO ACCEPT THE JUDGEMENT OF MADRAS HIGH COURT AND WITHD RAW ALL THE APPEALS FILED BY THE REVENUE. THIS DIRECTION OF CB DT IS BINDING ON ALL ITS OFFICERS. THEREFORE, THE REVENUE OUGHT NOT HAVE FILED APPEAL BEFORE THIS TRIBUNAL CONTENDING THAT THE APPEAL FIL ED BY THE REVENUE BEFORE THE APEX COURT AGAINST THE JUDGEMENT OF MADR AS HIGH COURT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD. IS PENDIN G. IN VIEW OF THE CIRCULAR OF THE CBDT INSTRUCTING ITS OFFICERS N OT TO FILE APPEAL AND 4 I.T.A. NO.1537/MDS/16 ACCEPT THE DECISION OF MADRAS HIGH COURT IN VELAYUD HASWAMY SPINNING MILLS (P) LTD. (SUPRA), THE APPEAL FILED B Y THE REVENUE IS NOT MAINTAINABLE. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE S TANDS DISMISSED. ORDER PRONOUNCED ON 30 TH SEPTEMBER, 2016 AT CHENNAI. SD/- SD/- (. !'# ! ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 30 TH SEPTEMBER, 2016. KRI. / -267 87)2 /COPY TO: 1. +, /APPELLANT 2. -.+, /RESPONDENT 3. 1 92 () /CIT(A) 4. 1 92 /CIT, 5. 7: -2 /DR 6. ;( < /GF.