DCIT, CHENNAI V. Ambica Agarbathi & Aromo Industries Ltd., CHENNAI

ITA 1579/CHNY/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8168 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2017
• Appeal Filed By: Department
• Bench Allotted: C
• Next Hearing Date: 04-01-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 30-05-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: T.S. AJAI
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 143(3); 92; 250; 80IA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . , . , $ % BEFORE SHRI ABRAHAM P. GEORGE , ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER ./ I.T.A. NO. 1579/MDS/2016 / ASSESSMENT YEAR : 2010-11 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE - 1 (1), CHENNAI - 600 034. VS. M/S. AMBICA AGARBATHI & AROMO INDUSTRIES LTD., AMBICA EMPIRE, 57, 100 FEET ROAD, VADAPALANI, CHENNAI - 600 026. [PAN: AAACA 7483L] ( / APPELLANT) ( /RESPONDENT) ' ( / APPELLANT BY : SHRI A.V. SREEKANTH, JCIT +,' ( / RESPONDENT BY : SHRI T.S. AJAI, CA ( /DATE OF HEARING : 04.01.2017 ( /DATE OF PRONOUNCEMENT : 04.01.2017 /O R D E R PER G. PAVAN KUMAR, JUDICIAL MEMBER: THE APPEAL FILED BY THE REVENUE AGAINST THE ORDER O F COMMISSIONER OF INCOME-TAX (APPEALS)-1, CHENNAI FOR THE ASSESSME NT YEAR 2010-11 PASSED :-2-: I.T.A. NO. 1579/MDS/2016 U/S. 143(3)AND 250 OF THE INCOME TAX ACT, 1961 (HER EIN AFTER REFERRED TO AS 'THE ACT'). 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS WITH REGARD TO DEDUCTION ELIGIBLE TO THE ASSESSEE U/S. 80IA OF THE INCOME TA X ACT, 1961 (IN SHORT 'THE ACT') IN RESPECT OF WIND ENERGY GENERATION. 3. THE BRIEF FACTS OF THE CASE THAT THE ASSESSEE CO MPANY FILED RETURN OF INCOME FOR THE ASSESSMENT YEAR 2010-11 ON 14.10. 2010 ADMITTING TOTAL INCOME OF RS. 2,16,65,467/- AND ASSESSMENT WAS COMP LETED U/S. 143(3) OF THE ACT ON 28.03.2013. THE LD. AO, RELYING ON PROV ISIONS OF SECTION 80IA(5) OF THE ACT DENIED THE ASSESSEE DEDUCTION U/S. 80IA, CLAIMED AT RS. 40,99,028/-, BY NOTIONALLY BRINGING FORWARD AND SET TING OFF LOSS OF THE ELIGIBLE BUSINESS OF THE EARLIER YEARS. THIS ISSUE, EVEN AS ADMITTED BY THE PARTIES BEFORE US, IS SQUARELY COVERED BY THE DECISION BY T HE HON'BLE JURISDICTIONAL HIGH COURT IN M/S. SRI VELAYUDHASWAMY SPINNING MILL S PVT. LTD., VS. CIT (340 ITR 477 (MDS). THE HON'BLE COURT HAS THEREIN CLARI FIED, THAT NOTWITHSTANDING PROVISIONS OF SECTION 80IA(5), SUCH LOSSES, ALREADY SET OFF, CANNOT BE NOTIONALLY BROUGHT FORWARD AND ADJUSTED FOR COMPUTI NG DEDUCTION U/S. 80IA OF THE ACT. FURTHER, THE REVENUE HAS NOT ACCEPTED THE JUDGMENT OF MADRAS HIGH COURT AND FILED SPECIAL LEAVE PETITION (SLP) IN THE HON'BLE SUPREME COURT. THE LD. COUNSEL OF THE ASSESSEE SUBMITTED THAT THE HON'BLE SUPREME COURT IN :-3-: I.T.A. NO. 1579/MDS/2016 CIVIL APPEAL NO. 2596/2012 HAS DISMISSED THE SPECIA L LEAVE PETITION FILED BY THE REVENUE IN ORDERS DATED 23.09.2016. THEREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT SINCE SPECIAL LEAVE PETITIO N FILED BEFORE THE APEX COURT IS DISMISSED. THE JUDGMENT OF MADRAS HIGH CO URT IS BINDING ON ALL THE AUTHORITIES IN THE STATE OF TAMIL NADU AND UNION TE RRITORY OF PONDICHERRY. THEREFORE, THE COMMISSIONER OF INCOME TAX (APPEALS) HAS RIGHTLY ALLOWED THE CLAIM OF THE ASSESSEE BY FOLLOWING THE JUDGMENT OF MADRAS HIGH COURT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD., (SUPRA). A CCORDINGLY, THE TRIBUNAL DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE COMMI SSIONER OF INCOME TAX (APPEALS). THE APPEAL OF THE REVENUE IS DISMISSED. 4. IN THE RESULT, THE REVENUE APPEAL FOR THE ASSES SMENT YEAR 2010-11 IS DISMISSED. ORDER PRONOUNCED ON WEDNESDAY, THE 04TH DAY OF JANU ARY, 2017 AT CHENNAI. SD/- ( . ) (ABRAHAM P. GEORGE) / ACCOUNTANT MEMBER SD/- ( . ) (G. PAVAN KUMAR) ! /JUDICIAL MEMBER /CHENNAI, 2 /DATED: 04TH JANUARY, 2017 JPV ( +$45 65 /COPY TO: 1. ' APPELLANT 2. +,' /RESPONDENT 3. 7 ( )/CIT(A) 4. 7 /CIT 5. 5 +$$ /DR 6. /GF