ACIT, CHENNAI V. M/s. Scientific Atlanta India Technology (P) Ltd., CHENNAI

ITA 1821/CHNY/2010

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 1335 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2002-2003
• Appeal Filed On: 26-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K E B RENGARAJAN JR
• Assessee Lawyers: DR ANITHA SUMANTH
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHENNAI BENCH D BEFORE DR.O.K.NARAYANAN, VICE PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER I.T.A. NO.1821/MDS/2010 ASSESSMENT YEAR : 2002-03 THE ASSTT. COMMISSIONER OF INCOME TAX, COMPANY CIRCLE VI(1), CHENNAI VS. M/S. SCIENTIFIC ATLANTA INDIA TECHNOLOGY (P) LTD. ASV SUNTECH PART, 230A OLD MAHABALIPURAM ROAD 148 OGGLAM, THORAPAKKAM CHENNAI 600 096. PAN AABCB 4448 F (APPELLANT) (RESPONDENT) DEPARTMENT BY : SHRI K.E.B. RENGARAJAN JR. STANDING COUNSEL ASSESSEE BY : DR. ANITHA SUMANTH O R D E R PER DR.O.K.NARAYANAN, VICE PRESIDENT THIS IS AN APPEAL FILED BY THE REVENUE. THE RELEVA NT ASSESSMENT YEAR IS 2002-03. THIS APPEAL IS DIRECTED AGAINST THE ORDER OF THE ITA NO. 1821/MDS/2010 :- 2 -: COMMISSIONER OF INCOME-TAX (APPEALS) AT CHENNAI DAT ED 09.08.2010 AND ARISES OUT OF THE ASSESSMENT COMPLETED UNDER SE C.143(3) READ WITH SEC.147 OF THE I.T. ACT, 1961. 2. THE FIRST ISSUE RAISED BY THE REVENUE IN THIS AP PEAL IS THAT THE CIT(A) HAS ERRED IN ALLOWING THE CLAIM OF THE ASSES SEE THAT THE DEDUCTION U/S 10A OF THE ACT SHOULD BE GRANTED BEFO RE SETTING OFF OF LOSS OF THE OTHER NON ELIGIBLE UNITS AGAINST THE PR OFITS OF THE ELIGIBLE UNIT. AS A MATTER OF FACT, THIS ISSUE NOW STANDS CONCLUDE D IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE ITAT CHENNAI C SP ECIAL BENCH. IN THE DECISION OF THE ITAT, CHENNAI RENDERED IN ASSES SEES OWN CASE DATED 05.02.2010 IN ITA NOS. 229/MDS/2007, ITA NO. 352/MDS/2008 AND ITA NO. 536/MDS/2007 THE SPECIAL BENCH HAS HELD THAT THE DEDUCTION U/S 10A OF THE ACT HAS TO BE GRANTED STA ND ALONE BASIS WITHOUT ITS PROFITS BEING DILUTED BY UNABSORBED LOS S AND DEPRECIATION OF OTHER NON ELIGIBLE UNITS. 3. IN VIEW OF THE ABOVE DECISION OF THE SPECIAL BEN CH, WE HOLD THAT THE DECISION OF THE CIT(A) ON THIS POINT IS PROPER AND JUST IN LAW. THE ISSUE IS DECIDED, ACCORDINGLY, AGAINST THE REVENUE. 4. THE NEXT GROUND RAISED BY THE REVENUE IS THAT TH E CIT(A) HAS ERRED IN ALLOWING THE ASSESSEES APPEAL AGAINST CHA RGING OF INTEREST U/S 234D OF THE ACT. IT IS TO BE SEEN THAT THIS GROUND IS INCIDENTAL TO THE ITA NO. 1821/MDS/2010 :- 3 -: MAIN GROUND MENTIONED ABOVE AND AS A CONSEQUENCE OF THE DECISION ARRIVED AT ON THE MAIN ISSUE, THIS GROUND HAS BECOM E OTIOSE. 5. FURTHER, IN LAWS, THE HONBLE HIGH COURT OF DELH I HAS HELD IN A RECENT JUDGMENT BY THEIR LORDSHIPS THAT OPERATION O F SECTION 234D OF THE ACT IS ONLY PROSPECTIVE AND IT DOES NOT DISTURB THE PERIOD PRIOR TO ASSESSMENT YEAR 2004-05. DIT VS. JACABS CIVIL INCOR PORATED IN ITA NO. 491/2008 AND OTHERS DATED 30 AUGUST 2010. IN TH E PRESENT CASE, WE ARE CONCERNED WITH ASSESSMENT YEAR 2002-03. THE REFORE, IT IS TO BE SEEN THAT SECTION 234D OF THE ACT ITSELF IS NOT APPLICABLE TO THE PRESENT CASE. 6. IN THE FACTS AND CIRCUMSTANCES OF THIS CASE, THI S APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON MONDAY, THE 10 TH DAY OF JANUARY, 2011 AT CHENNAI. SD/- SD /- (HARI OM MARATHA) JUDICIAL MEMBER ( DR.O.K.NARAYANAN) VICE-PRESIDENT CHENNAI : 10 TH JANUARY, 2011 VL. COPY TO: APPELLANT /RESPONDENT/CIT(A)/CIT/DR