DCIT, Coimbatore V. Lakshminarayanan Gaurishanker Enterprises Private Ltd., Coimbatore

ITA 1685/CHNY/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68859 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 02-09-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T N BETGERI IRS
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI V.DURGA RAO, JUDICIAL MEMBER ITA NO.1685/MDS/2013 ASSESSMENT YEAR : 2010-11 THE DEPUTY COMMISSIONER OF INCOME-TAX, COMPANY CIRCLE-I(3), 63-A, RACE COURSE ROAD, COIMBATORE. VS. M/S. LAKSHMINARAYANAN GAURISHANKER ENTERPRISES PRIVATE LTD., SUGARCANE BREEDING INSTITUTE POST, COIMBATORE-641007 . PAN AAACL3739L (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI T.N.BETGER I, IRS, CIT RESPONDENT BY : NONE DATE OF HEARING : 18 TH NOVEMBER, 2013 DATE OF PRONOUNCEMENT : 18 TH NOVEMBER, 2013 O R D E R PER DR.O.K.NARAYANAN, VICE PRESIDENT THIS APPEAL IS FILED BY THE REVENUE. THE RELEVAN T ASSESSMENT YEAR IS 2010-11 . THE APPEAL IS DIRECT ED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS)-I AT ITA 1685/13 :- 2 -: COIMBATORE, DATED 25.6.2013. THE APPEAL ARISES OUT OF THE ASSESSMENT COMPLETED UNDER SEC.143(3) OF THE INCOME -TAX ACT, 1961. 2. THE GROUNDS RAISED BY THE REVENUE IN THE PRESENT APPEAL READ AS BELOW : 2. THE LEARNED COMMISSIONER OF INCOME TAX-I, COIMBATORE HAS ERRED IN HOLDING THAT THE ASSESSEE IS ENTITLED FOR DEDUCTION U/S-80IA. 3. THE LEARNED COMMISSIONER OF INCOME TAX-I, COIMBATORE HAS ERRED IN HOLDING THAT THE ASSESSMENT YEAR 2009-10 IS THE FIRST INITIAL ASSESSMENT YEAR IN WHICH THE ASSESSEE HAD CLAIMED THE DEDUCTION U/S-80IA, AND, THEREFORE THE DEPRECIATION OF EARLIER YEARS (WHICH ALREADY HAVE BEEN ABSORBED) CANNOT BE NOTIONALLY CARRIED FORWARD AND CONSIDERED IN COMPUTING THE QUANTUM OF DEDUCTION U/S-80IA. 4. THE LEARNED COMMISSIONER OF INCOME TAX-I, COIMBATORE, SHOULD HAVE OBSERVED THAT AS PER THE PROVISIONS OF SECTION-80IA(2) AN ASSESSEE CAN OPT FOR DEDUCTION OF ANY TEN CONSECUTIVE YEARS OUT OF FIFTEEN YEARS, RECKONED FROM THE FIRST YEAR IN WHIC H THE UNDERTAKING ENTERPRISE GENERATES POWER OR COMMENCES TRANSMISSION OR DISTRIBUTES POWER, ETC. 5. THE LEARNED COMMISSIONER OF INCOME TAX-I, COIMBATORE, OUGHT HAVE APPRECIATED, THAT AS PER THE PROVISIONS OF THE SECTION-80IA(5) THE ELIGIBLE UNDERTAKING SHOULD BE TREATED AS ONLY SOURCE OF INCOME FOR COMPUTING THE QUANTUM OF DEDUCTION ALLOWABLE U/S-80IA. 6. THE LEARNED COMMISSIONER OF INCOME TAX-I, COIMBATORE, SHOULD HAVE TAKEN NOTE OF THE FACT THAT THE SEC-80IA(5) BEGINS WITH A NON-OBSTANTE ITA 1685/13 :- 3 -: CLAUSE; AND, THEREFORE, THE RESTRICTION THEREIN, SH ALL PREVAIL IN COMPUTING AND ALLOWING THE DEDUCTION U/S-80IA. 3. WHEN THE MATTER WAS CALLED ON FOR HEARING, NOBOD Y WAS PRESENT FOR THE RESPONDENT-ASSESSEE, EVEN THOUGH NO TICE OF HEARING WAS SERVED ON THE ASSESSEE THROUGH INCOME-T AX DEPARTMENT. THEREFORE, WE HEARD SHRI T.N.BETGERI, THE LEARNED JOINT COMMISSIONER OF INCOME-TAX, APPEARING FOR THE REVENUE AND PROCEED TO DISPOSE OF THE MATTER EX PARTE, QUA, THE ASSESSEE. 4. THE ISSUE IS COVERED BY THE JUDGMENT OF THE HON BLE MADRAS HIGH COURT IN THE CASE OF VELAYUDHASAMY SPINNING MI LLS PVT. LTD. VS. ACIT (231 CTR 368). THE HONBLE COURT HAS HELD THAT THE ASSESSEE IS ENTITLED FOR DEDUCTION UNDER SEC.80IA. THE ORDER OF THE TRIBUNAL IN VELAYUDHASAMY SPINNING MILLS PVT. L TD. HAS BEEN UPHELD BY THE HONBLE MADRAS HIGH COURT. INCOME-TA X APPELLATE TRIBUNAL, CHENNAI B BENCH HAS HELD THE SAME VIEW IN ANOTHER CASE, RANGAMMA STEELS AND MALLEABLES VS. ACIT IN IT A NO.1171/MDS/2009. ITA 1685/13 :- 4 -: 5. IN VIEW OF THE ABOVE, WE FIND THAT THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS) IS JUST AND PRO PER AND NO INTERFERENCE IS CALLED FOR. 6. IN RESULT, THE APPEAL FILED BY THE REVENUE IS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON MONDAY, THE 18 TH OF NOVEMBER, 2013 AT CHENNAI. SD/- SD/- (V.DURGA RAO) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED, THE 18 TH NOVEMBER, 2013. MPO* COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GF.