DCIT, Tiruppur V. Gomathi Spinning Mills Pvt Ltd., Tiruppur

ITA 1702/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 8449 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 07-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A V SHREEKANTH
• Assessee Lawyers: N VIJAY KUMAR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , . !' ,$ % BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO. 1700/MDS/2016 ' (' / ASSESSMENT YEAR : 2013-14 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -2, 121,SIXTY FEET ROAD, TIRUPUR 641 602. V. M/S.VENNILA CLOTHING COMPANY , (PREVIOUSLY M/S.RAMRAJ HANDLOOMS), NO.31-A, THULASI RAO STREET, TIRUPUR 641 604. PAN : AAHFR 2641F (*+/ APPELLANT) (,-*+/ RESPONDENT) ./ ITA NO. 1701/MDS/2016 ' (' / ASSESSMENT YEAR : 2013-14 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -2, 121,SIXTY FEET ROAD, TIRUPUR 641 602. V. M/S. SUDHAN SPINNING MILLS PVT.LTD., NO.207/86, MANGALAM ROAD, KARUVAMPALAYAM, TIRUPUR 641 604. PAN : AADCS0670E (*+/ APPELLANT) (,-*+/ RESPONDENT) ./ ITA NO. 1702/MDS/2016 ' (' / ASSESSMENT YEAR : 2013-14 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -2, 121,SIXTY FEET ROAD, TIRUPUR 641 602. V. M/S.GOMATHI SPINNING MILLS PVT.LTD., NO.20, THILLAI NAGAR, DHARAPURAM ROAD, TIRUPUR 641 608. PAN: AACCG2292B (*+/ APPELLANT) (,-*+/ RESPONDENT) 2 I.T.A. NO.1700 , 1701, 1702 & 1703/MDS/2016 ./ ITA NO. 1703/MDS/2016 ' (' / ASSESSMENT YEAR : 2013-14 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -2, 121,SIXTY FEET ROAD, TIRUPUR 641 602. V. M/S. MEERA TEXTILES PVT.LTD., NO.20, THILLAI NAGAR, DHARAPURAM ROAD, TIRUPUR 641 608. PAN: AABCM 9581E (*+/ APPELLANT) (,-*+/ RESPONDENT) *+ . / / APPELLANT BY : SHRI A.V.SHREEKANTH, JCIT ,-*+./ / RESPONDENT BY : N.VIJAY KUMAR, C.A. 0 .1$ / DATE OF HEARING : 30.08.2016 2!( .1$ / DATE OF PRONOUNCEMENT : 23.09.2016 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: ALL THE FOUR APPEALS OF THE REVENUE RELATES TO FO UR INDEPENDENT ASSESSEES AND DIRECTED AGAINST THE RESPECTIVE ORDER OF CIT(A) -3, COIMBATORE DATED 21.12.2015. SINCE COMMON ISSUE ARISES FOR CONSIDERATION IN ALL THE APPEALS, WE HEARD THE SAME TOGETHER AND DISPOSING O F THE SAME BY THIS COMMON ORDER. 2. SHRI A.V.SHREEKANTH, THE LEARNED REPRESENTATIVE FOR THE DEPARTMENT SUBMITTED THAT THE ONLY ISSUE ARISES FOR CONSIDERAT ION IS WITH REGARD TO SETTING OF ALL THE BROUGHT FORWARD LOSS FOR THE PURPOSE OF COM PUTING ELIGIBLE DEDUCTION UNDER SECTION 80IA OF THE ACT. DURING THE COURSE OF HEARING, THE DEPARTMENT REPRESENTATIVE VERY FAIRLY SUBMITTED THAT THE ISSUE IS COVERED BY THE JUDGMENT OF 3 I.T.A. NO.1700 , 1701, 1702 & 1703/MDS/2016 THE MADRAS HIGH COURT IN THE CASE OF SHRI VELAYUDHA SWAMY SPINNING MILLS P.LTD. REPORTED IN 231 CTR (MDS) 368. THE DEPARTMEN T REPRESENTATIVE FURTHER SUBMITTED THAT THE REVENUE HAS ALREADY FILED AN APP EAL BEFORE THE APEX COURT AND THE SAME IS PENDING. 3. ON THE CONTRARY, SHRI N.VIJAY KUMAR, THE LEARNED REPRESENTATIVE FOR THE ASSESSEE SUBMITTED THAT SETTING OFF THE BROUGHT FOR WARD LOSS FOR THE PURPOSE OF COMPUTING ELIGIBLE DEDUCTION UNDER SECTION 80IA WAS DECIDED BY THE MADRAS HIGH COURT IN FAVOUR OF THE ASSESSEE IN THE CASE OF SHRI VELAYUDHASWAMY SPINNING MILLS P.LTD. CITED SUPRA. THE CBDT INSTRUC TED ITS OFFICERS TO ACCEPT THE JUDGMENT OF THE MADRAS HIGH COURT AND WITHDRAW ALL THE PENDING APPEALS. INSPITE OF THIS INSTRUCTION, THE REVENUE HAS FILED THE PRESENT APPEALS EVEN THOUGH THE JUDGMENT OF THE MADRAS HIGH COURT IS IN FAVOUR OF THE ASSESSEE. THEREFORE, THE APPEALS FILED BY THE REVENUE BEFORE THIS TRIBUNAL IS NOT MAINTAINABLE. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. ADMITTEDL Y, IN ALL THE FOUR APPEALS, ISSUE ARISES FOR CONSIDERATION IS SETTING OFF THE B ROUGHT FORWARD LOSS FOR THE PURPOSE OF COMPUTING ELIGIBLE DEDUCTION UNDER SECTI ON 80IA. IT IS NOT IN DISPUTE THAT THE MADRAS HIGH COURT IN SHRI VELAYUDHASWAMY S PINNING MILLS P.LTD. CITED SUPRA EXAMINED THIS ISSUE AND DECIDED THE SAME IN F AVOUR OF THE ASSESSEE. THEREFORE, THE ISSUE IS COVERED IN FAVOUR OF THE AS SESSEE AS RIGHTLY SUBMITTED BY THE LEARNED REPRESENTATIVE FOR THE ASSESSEE. THE CBDT INSTRUCTED ITS OFFICERS NOT TO FILE ANY APPEAL WHEREVER THE CIT(A) HAS FOLL OWED THE JUDGMENT OF THE 4 I.T.A. NO.1700 , 1701, 1702 & 1703/MDS/2016 MADRAS HIGH COURT AND ALSO INSTRUCTED ITS OFFICERS TO WITHDRAW ITS APPEALS WHEREVER IT IS PENDING. 5. IN VIEW OF THIS INSTRUCTION, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE APPEALS FILED BY THE REVENUE ARE NOT MAINTAINAB LE. ACCORDINGLY, THE SAME IS DISMISSED. 6. IN THE RESULT, ALL THE FOUR APPEALS FILED BY THE REVENUE ARE DISMISSED. ORDER PRONOUNCED ON 23 RD SEPTEMBER, 2016 AT CHENNAI. SD/- SD/- (. !' ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 4 /DATED, THE 23 RD SEPTEMBER, 2016. SP. . ,156 76(1 /COPY TO: 1. *+ /APPELLANT 2. ,-*+ /RESPONDENT 3. 0 81 () /CIT(A) 4. 0 81 /CIT, 5. 69 ,1 /DR 6. :' ; /GF.