DCIT, Coimbatore V. M/s. Emerald Jewel Industry (P) Ltd., Coimbatore

ITA 1635/CHNY/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58139 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 19-03-2012
• Assessment Year: 2008-2009
• Appeal Filed On: 05-10-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G NANDHA KUMAR
• Assessee Lawyers: S SRIDHAR; A S SRIRAM
• Keywords: Depreciation

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL CHENNAI B BENCH, CHENNAI. BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT & SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER I.T.A. NO. 1635/MDS/2011 ASSESSMENT YEAR: 2008-09 THE DEPUTY COMMISSIONER OF INCOME TAX, COMPANY CIRCLE I(3), COIMBATORE. VS. M/S. EMERALD JEWEL INDUSTRY (P) LTD., 333, 2 ND FLOOR, BIG BAZAAR STREET, COIMBATORE 1. [PAN: AABCE3430A] (APPELLANT) (RESPONDENT) REVENUE BY : SHRI G. NANDHA KUMAR, JCIT ASSESSEE BY : SHRI S. SRIDHAR, ADVOCATE & A.S. SRIRAM, ADVOCATE DATE OF HEARING : 19.03.2012 DATE OF PRONOUNCEMENT : 19.03.2012 ORDER PER CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE DEPARTMENT AGAINST T HE ORDER OF THE CIT(A) V, CHENNAI DATED 19.07.2011 IN ITA NO.302/20 10-11 RELEVANT TO THE ASSESSMENT YEAR 2008-09. SHRI G. NANDHA KUMAR, JCIT REPRESENTED ON BEHALF OF THE REVENUE AND S/SHRI S. SRIDHAR & A.S. SRIRAM, ADVOCATES REPRESENTED ON BEHALF OF THE ASSESSEE. 2. THE ONLY ISSUE RAISED BY THE REVENUE IN THIS APP EAL IS AGAINST ALLOWANCE OF DEDUCTION UNDER SECTION 80IA OF THE AC T ON WINDMILLS BY THE CIT(A). I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.1635 1635 1635 1635/M/ /M/ /M/ /M/1 11 11 11 1 2 3. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE, SUBMITTED THAT THIS ISSUE IS SQUARELY COVERED BY THE DECISIONS OF HONBLE MADRAS HIGH COURT IN ASSESSEES OWN CASE IN T.C.(A) NO. 715 OF 2010; (2011) 53 DTR (MAD) 262 AND IN THE CASE OF VELAYUDHASWAMY SPINNING MILL S (P) LTD. VS. ACIT IN T.C.(A) NO. 909 OF 2009; (2010) 231 CTR (MAD) 368 : (2010) 38 DTR 57. 4. THE LD. DR RELIED ON THE ORDER OF THE ASSESSING OFFICER. 5. WE HAVE HEARD BOTH THE SIDES. THE LD. CIT(A) DE CIDED THIS ISSUE IN FAVOUR OF THE ASSESSEE FOLLOWING THE ORDER OF THIS TRIBUNAL IN ASSESSEES OWN CASE. THE CIT(A) IN PARA 5.3 HAS OBSERVED AS UNDER: 5.3 I HAVE GONE THROUGH THE SUBMISSIONS MADE BY TH E APPELLANT AND THE ORDER OF THE ASSESSING OFFICER. THE ASSESSING O FFICER IN HIS ORDER MENTIONED THAT THE DECISION OF THE HONOURABLE HIGH COURT OF MADRAS IN THE CASE OF M/S. SRI VELAYUDHASWAMY SPINNING MIL LS (P) LTD., HAS NOT BEEN ACCEPTED BY THE DEPARTMENT AND AN SLP HAS BEEN FILED BEFORE THE SUPREME COURT. HENCE, THE ASSESSEE'S CLAIM U/S 80IA IS DISALLOWED. THE ASSESSING OFFICER'S ACTION IN DISREGARDING THE JUDGMENT OF THE JURISDICTIONAL HIGH COURT IS IN COMPLETE VIOLATION OF THE JUDICIAL PRECEDENTS ON BINDING NATURE OF THE HIGH COURT'S JU DGMENT. THE ASSESSING OFFICER IS BOUND BY THE JUDGEMENT OF THE JURISDICTIONAL HIGH COURT ON A PARTICULAR ISSUE WHILE DECIDING THE SAME IN APPELLANT'S CASE. THE APPEAL OF THE ASSESSEE REGARDING DEDUCTION U/S 80IA FOR THE ASSESSMENT YEAR 2006-07 HAS BEEN ALLOWED BY THE HON 'BLE ITAT, CHENNAI B BENCH IN ITA NO.909/MDS/09. THE HONOURABL E HIGH COURT OF MADRAS IN THE CASE OF M/S SRI VELAYUDHASWAMY SPI NNING MILLS (P) LTD. HELD THAT DEPRECIATION CLAIMED AND ALLOWED IN THE EARLIER ASSESSMENT YEAR NEED NOT BE BROUGHT BACK IN SUBSEQU ENT ASSESSMENT YEAR TO DETERMINE THE AMOUNT ELIGIBLE FOR DEDUCTION U/S 80IA AND THAT SUBSECTION (5) WOULD APPLY ONLY FROM THE YEAR FROM WHICH THE ASSESSEE HAD STARTED CLAIMING DEDUCTION U/S 801A. SINCE THE FACTS OF THE CASE ARE COVERED BY THE DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF M/S SRI VELAYUDHASWAMY SPINNING MILLS (P) LTD., THE ASSESSING OFFICER IS DIRECTED TO ALLOW THE DEDUCTION CLAIMED BY THE A PPELLANT U/S 80IA. I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.1635 1635 1635 1635/M/ /M/ /M/ /M/1 11 11 11 1 3 6. ON GOING THROUGH THE ORDERS OF LOWER AUTHORITIE S AND THE DECISION OF THE HONBLE MADRAS HIGH COURT IN ASSESSEES OWN CAS E AND THE DECISION IN THE CASE OF VELAYUDHASWAMY SPINNING MILLS (P) LTD. VS. ACIT (SUPRA), WE FIND THAT THIS ISSUE IS COVERED IN FAVOUR OF THE AS SESSEE BY THE DECISIONS OF THE HONBLE MADRAS HIGH COURT IN ASSESSEES OWN CAS E. HENCE, WE CONFIRM THE ORDER OF THE CIT(A) ON THIS ISSUE. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19.03.2012. SD/- SD/- (DR. O.K. NARAYANAN) VICE-PRESIDENT (CHALLA NAGENDRA PRASAD) JUDICIAL MEMBER CHENNAI, DATED, THE 19.03.2012 VM/- TO: THE ASSESSEE//A.O./CIT(A)/CIT/D.R.