DCIT, Tiruppur V. Armstrong Knitting Mills, Tiruppur

ITA 1653/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 8855 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 03-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVASRINIVAS IRS
• Assessee Lawyers: N VIJAY KUMAR
• Keywords: Reasonable cause

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI . , . , BEFORE SHRI ABRAHAM P. GEORGE , ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER ./I.T.A. NO. 1646/MDS/2016 / ASSESSMENT YEAR : 2013-2014 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -1, TIRUPUR VS. M/S. VIKING KNITTERS, NO.4, VOC NAGAR, IST STREET, GANDHI NAGAR PO, TIRUPUR 641 603. [PAN AABFV 8542R] ( / APPELLANT) ( /RESPONDENT) ! ' # / APPELLANT BY : SHRI. SHIVA SRINIVAS, IRS, JCIT. $% ! ' # /RESPONDENT BY : SHRI. N. VIJAYKUMAR, C.A. ./I.T.A. NO. 1647/MDS/2016 / ASSESSMENT YEAR : 2013-2014 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -1, TIRUPUR VS. M/S. SAKTHI MURUGAN ROLLER FLOUR MILLS LIMITED, SF. NO.19/2, PUDUPALAYAM, COIMBATORE ROAD, AVINASHI 641 654. [PAN AADCS 0673H] ! ' # / APPELLANT BY : SHRI. SHIVA SRINIVAS, IRS, JCIT. $% ! ' # /RESPONDENT BY : SHRI.G. BASKAR, ADVOCATE ITA NOS.1646 TO 1653/2016. :- 2 -: ./I.T.A. NO. 1648 & 1649/MDS/2016 / ASSESSMENT YEAR : 2012-13 & 2013-2014 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -1, TIRUPUR VS. M/S. SAKTHI MURUGAN AGRO FOODS LTD, SF. NO.19/2, PUDUPALAYAM, COIMBATORE ROAD, AVINASHI 641 654. [PAN AACCS 9473J] ! ' # / APPELLANT BY : SHRI. SHIVA SRINIVAS, IRS, JCIT. $% ! ' # /RESPONDENT BY : SHRI.G. BASKAR, ADVOCATE ./I.T.A. NO. 1650/MDS/2016 / ASSESSMENT YEAR : 2011-2012 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -1, TIRUPUR VS. M/S. SPICTEX COTTON MILLS (P) LTD, NO.63-B, P.N. ROAD, TIRUPUR 641 602. [PAN AADCS 8164R] ! ' # / APPELLANT BY : SHRI. SHIVA SRINIVAS, IRS, JCIT. $% ! ' # /RESPONDENT BY : SHRI. N. VIJAYKUMAR, C.A. ./I.T.A. NO. 1651/MDS/2016 / ASSESSMENT YEAR : 2012-2013 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -1, TIRUPUR VS. M/S. EASTMAN SPINNING MILLS P. LTD, 10, 12, 2 ND STREET, KUMAR NAGAR SOUTH, TIRUPUR 641 603. [PAN AAACE 4595R ] ! ' # / APPELLANT BY : SHRI. SHIVA SRINIVAS, IRS, JCIT. $% ! ' # /RESPONDENT BY : SHRI. N. VIJAYKUMAR, C.A. ITA NOS.1646 TO 1653/2016. :- 3 -: ./I.T.A. NO. 1652/MDS/2016 / ASSESSMENT YEAR : 2013-2014 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -1, TIRUPUR VS. SHRI. R. YUVARAJ, PROP. MANIAM STEELS, OLD NO.104, NEW NO.344, KUMARAN ROAD, TIRUPUR 641 601. [PAN AAGPY 6883P] ! ' # / APPELLANT BY : SHRI. SHIVA SRINIVAS, IRS, JCIT. $% ! ' # /RESPONDENT BY : SHRI. N. VIJAYKUMAR, C.A. ./I.T.A. NO. 1653/MDS/2016 / ASSESSMENT YEAR : 2012-2013 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -1, TIRUPUR VS. M/S. ARMSTRONG KNITTING MILLS, NO.61, SAMYNATHAPURAM, ANUPPARPALAYAM, P.O. TIRUPUR 641 652. [PAN AAFFA 1226P ] ! ' # / APPELLANT BY : SHRI. SHIVA SRINIVAS, IRS, JCIT. $% ! ' # /RESPONDENT BY : SHRI. N. VIJAYKUMAR, C.A. & ' '( /DATE OF HEARING : 17-08-2016 )* ' '( /DATE OF PRONOUNCEMENT : 17-08-2016 ITA NOS.1646 TO 1653/2016. :- 4 -: ! / O R D E R PER BENCH : THESE APPEALS FILED BY THE REVENUE ARE DIRECTED A GAINST DIFFERENT ORDERS OF COMMISSIONER OF INCOME-TAX (APP EALS)-3 COIMBATORE, FOR THE ABOVE ASSESSMENT YEARS PASSE D U/S.143(3) AND 250 OF THE INCOME TAX ACT, 1961 (HEREIN AFTER REFE RRED TO AS THE ACT). SINCE THE ISSUE IN THESE APPEALS IS COMMON I N NATURE, HENCE THESE APPEALS ARE COMBINED, HEARD TOGETHER, AND DIS POSED OF BY A COMMON ORDER FOR THE SAKE OF CONVENIENCE. WE CONSID ER THE FACTS AS NARRATED IN ITA 1648/MDS/2016 OF ASSESSMENT YEAR 2 012-13 FOR ADJUDICATION. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS WITH REG ARD TO DEDUCTION CLAIMED BY THE ASSESSEE UNDER SECTION 80- IA OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) IN RESPECT OF WINDMILLS. 3. THERE IS A DELAY OF 66 DAYS IN FILING THESE APPEAL S BY THE REVENUE. AT THE TIME OF HEARING THE LD. DEPARTMENT AL REPRESENTATIVE HAS FILED AN AFFIDAVIT EXPLAINING THE REASONS FOR D ELAY AND THE LD. AUTHORISED REPRESENTATIVE HAS NO SERIOUS OBJECTION S FOR CONDONATION OF DELAY. AFTER HEARING THE SUBMISSIONS, WE ARE SA TISFIED WITH SUFFICIENT AND REASONABLE CAUSE FOR FILING THE APPEAL BELATEDL Y AND WE THEREFORE CONDONE THE DELAY AND ADMIT THE APPEALS. ITA NOS.1646 TO 1653/2016. :- 5 -: 4. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE C OMPANY FILED RETURN OF INCOME FOR THE ASSESSMENT YEAR 20 12-13 ON 20.10.2012 ADMITTING TOTAL INCOME OF F95,63,717/-. THE CASE WAS SELECTED FOR SCRUTINY AND THE ASSESSMENT WAS COMPLE TED BY DISALLOWING F83,94,831/- UNDER SECTION 80IA OF THE ACT BY NOTIO NALLY BRINGING IN AND SETTING OFF THE BROUGHT FORWARD LOSS FOR DETERM INING THE PROFITS QUALIFYING FOR DEDUCTION U/S.80IA FROM THE INITIAL ASSESSMENT YEAR BEING THE YEAR RELEVANT TO THE FINANCIAL YEAR IN WH ICH OPERATIONS RELATING TO THE WINDMILL INFRASTRUCTURE COMMENCED . AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE COMMISSIONE R OF INCOME TAX (APPEALS) .. 5. ON APPEAL, THE COMMISSIONER OF INCOME TAX (APPEALS ) OBSERVED THAT THE ISSUE IS COVERED BY THE JURISDICT IONAL HIGH COURT ORDER IN THE CASE OF CIT VS. VELAYUTHASAMY SPINNING MILLS 231 CTR 368 AND 340 ITR 477 AND ALLOWED THE CLAIM OF THE ASSESS EE. AGAINST COMMISSIONER OF INCOME TAX (APPEALS) ORDER, THE RE VENUE ASSAILED AN APPEAL BEFORE TRIBUNAL. 6. WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MAT ERIAL ON RECORD. THE ONLY CONTENTION OF THE DEPARTMENT BEFOR E THE TRIBUNAL THAT THE REVENUE HAS NOT ACCEPTED THE JUDGMENT OF M ADRAS HIGH COURT AND AN APPEAL HAS ALREADY BEEN FILED ALONG WITH SPE CIAL LEAVE PETITION AND THE SAME IS PENDING BEFORE THE APEX COURT. TH IS TRIBUNAL IS OF ITA NOS.1646 TO 1653/2016. :- 6 -: THE CONSIDERED OPINION THAT MERE PENDENCY OF SPECIA L LEAVE PETITION BEFORE THE APEX COURT CANNOT BE A REASON TO TAKE A DIFFERENT VIEW. THE JUDGMENT OF MADRAS HIGH COURT IS BINDING ON ALL THE AUTHORITIES IN THE STATE OF TAMIL NADU AND UNION TERRITORY OF POND ICHERRY. THEREFORE, THE COMMISSIONER OF INCOME TAX (APPEALS) HAS RIGHTLY ALLOWED THE CLAIM OF THE ASSESSEE BY FOLLOWING THE BINDING JUDGMENT OF MADRAS HIGH COURT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD (SUPRA). THEREFORE, THIS TRIBUNAL DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS). THE APPEAL OF THE REVENUE IS DISMISSED. 7. CONSEQUENTLY, THE APPEALS OF THE REVENUE IN ITA NO S.1646, 1647, 1649, 1650, 1651, 1652 & 1653/MDS/2016 ARE DI SMISSED. 8. IN THE RESULT, THE APPEALS OF THE DEPARTMENT IN IT A NOS. 1646 TO 1653/MDS/2016 ARE DISMISSED. ORDER PRONOUNCED ON WEDNESDAY, THE 17TH DAY OF AUGUST, 2016, AT CHENNAI . SD/- SD/- ( . ) (ABRAHAM P. GEORGE) $ % & / ACCOUNTANT MEMBER ( . ) (G. PAVAN KUMAR) ' % & /JUDICIAL MEMBER +& / CHENNAI , / DATED:17TH AUGUST, 2016 KV - ' $'./ 0/' / COPY TO: 1. ! / APPELLANT 3. 1' () / CIT(A) 5. /45 $'6 / DR 2. $% ! / RESPONDENT 4. 1' / CIT 6. 57 8& / GF