DCIT, Coimbatore V. Sri Ranganathar Valves P Ltd, Coimbatore

ITA 1734/CHNY/2015

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 2676 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 11-01-2016
• Assessment Year: 2012-2013
• Appeal Filed On: 29-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A B KOLI IRS
• Assessee Lawyers: S SRIDHAR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI , . ! , '!# BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER ./ I.T.A.NO.1734/MDS/2015 ' $ %$ / ASSESSMENT YEAR : 2012-2013 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE -2, COIMBATORE VS. M/S. SRI RANGANATHAR VALVES (P) LTD, 12/45, THADAGAM ROAD, EDAYARPALAYAM POST, COIMBATORE 641 025. [PAN AALCS 5492C ] ( / APPELLANT) ( /RESPONDENT) &' ( ) / APPELLANT BY : SHRI. A.B. KOLI, IRS, JCIT *+&' ( ) /RESPONDENT BY : SHRI. S. SRIDHAR, ADVOCATE ( , / DATE OF HEARING : 11-01-2016 -.% ( , / DATE OF PRONOUNCEMENT : 13-01-2016 / O R D E R PER G. PAVAN KUMAR, JUDICIAL MEMBER : THE APPEAL FILED BY THE REVENUE IS DIRECTED AGA INST ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-I, COIM BATORE IN ITA ITA NO.1734/MDS/2014. :- 2 -: NO.315/14-15, DT 29.05.2014 FOR THE ASSESSMENT YEAR 2012-2013 PASSED U/S.143(3) AND 250 OF THE INCOME TAX ACT, 1 961. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS WITH REGARD 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. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE C OMPANY FILED RETURN OF INCOME FOR THE ASSESSMENT YEAR 201 2-13 ON 29.09.2012 DISCLOSING TOTAL INCOME OF <10,29,69,030/-. THE CA SE WAS SELECTED FOR SCRUTINY AND THE ASSESSMENT WAS COMPLETED BY DISALL OWING <2,23,50,682/-UNDER SECTION 80IA OF THE ACT BY NOTI ONALLY 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). 4. ON APPEAL, THE COMMISSIONER OF INCOME TAX (APPEAL S) 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 ITA NO.1734/MDS/2014. :- 3 -: AND ALLOWED THE CLAIM OF THE ASSESSEE. AGAINST THIS , THE REVENUE IS IN APPEAL BEFORE US. 5. WE HEARD THE RIVAL SUBMISSIONS OF BOTH THE PARTIES , PERUSED THE MATERIAL ON RECORD AND ALSO JUDICIAL DECISIONS CITED. THE ONLY ISSUE ARISES FOR CONSIDERATION IS WITH REGARD TO DEDUCTIO N CLAIMED BY THE ASSESSEE UNDER SECTION 80-IA OF THE ACT IN RESPECT OF WINDMILLS. THE ASSESSING OFFICER REJECTED THE CLAIM OF THE ASSESSE E ON THE GROUND THAT THE DEPARTMENT HAS FILED A SPECIAL LEAVE PETITION A GAINST THE JUDGMENT OF MADRAS HIGH COURT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD VS. ACIT 231 CTR 368. HOWEVER, THE COMMISSIONER OF INCOME TAX (APPEALS) BY FOLLOWING THE JUDGMENT OF MADRAS HIGH COURT ALLOWED THE CLAIM OF THE ASSESSEE. 6. NOW THE ONLY CONTENTION OF THE DEPARTMENT BEFORE TH IS TRIBUNAL IS THAT THE REVENUE HAS NOT ACCEPTED THE J UDGMENT OF MADRAS HIGH COURT AND AN APPEAL HAS ALREADY BEEN FILED ALO NG WITH SPECIAL LEAVE PETITION AND THE SAME IS PENDING BEFORE THE A PEX COURT. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT MERE PEN DENCY OF SPECIAL LEAVE PETITION BEFORE THE APEX COURT CANNOT BE A RE ASON TO TAKE A DIFFERENT VIEW. THE JUDGMENT OF MADRAS HIGH COURT IS BINDING ON ALL THE AUTHORITIES IN THE STATE OF TAMIL NADU AND UNIO N TERRITORY OF PONDICHERRY. THEREFORE, THE COMMISSIONER OF INCOME TAX (APPEALS) ITA NO.1734/MDS/2014. :- 4 -: HAS RIGHTLY ALLOWED THE CLAIM OF THE ASSESSEE BY FO LLOWING THE BINDING JUDGMENT OF MADRAS HIGH COURT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD (SUPRA). THEREFORE, THIS TRIBUNAL DO NOT FIND ANY INFIRMIT Y IN THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS). 7. IN THE RESULT, THE APPEAL OF THE REVENUE ARE DISMI SSED. ORDER PRONOUNCED ON WEDNESDAY, THE 13TH DAY O F JANUARY, 2016, AT CHENNAI. SD/- SD/- ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER ( . ! ) (G. PAVAN KUMAR) /JUDICIAL MEMBER / CHENNAI / / DATED: 13.01.2016 KV 0 ( *',23 43%, / COPY TO: 1 . &' / APPELLANT 3. 5, () / CIT(A) 5. 389 *',' / DR 2. *+&' / RESPONDENT 4. 5, / CIT 6. 9:$ ; / GF