DCIT, Tiruppur V. M/s. Vedha Spinning Mills P, Ltd., Tiruppur

ITA 1842/CHNY/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 73725 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 12-02-2014
• Assessment Year: 2010-2011
• Appeal Filed On: 21-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: N VIJAY KUMAR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , ! , ' # $ BEFORE DR. O.K. NARAYANAN, VICE PRESIDENT & SHRI VIKAS AWASTHY, JUDICIAL MEMBER ./ I.T.A. NO. 1842/MDS/2013 / ASSESSMENT YEAR : 2010-11 DEPUTY COMMISSIONER OF INCOME TAX, COMPANY CIRCLE, TIRUPUR VS M/S.VEDHA SPINNING MILLS P.LTD., 207/86, MANGALAM ROAD, KARUVAMPALAYAM, TIRUPUR [PAN: AABCV 2433 Q] ./ I.T.A. NO. 1843/MDS/2013 / ASSESSMENT YEAR : 2010-11 DEPUTY COMMISSIONER OF INCOME TAX, COMPANY CIRCLE, TIRUPUR VS SRI VELAYUTHASWAMY SPINNING MILLS P. LTD., 207/86, MANGALAM ROAD, KARUVAMPALAYAM, TIRUPUR [PAN: AADCS 0676 C] ./ I.T.A. NO. 1844/MDS/2013 / ASSESSMENT YEAR : 2010-11 DEPUTY COMMISSIONER OF INCOME TAX, COMPANY CIRCLE, TIRUPUR VS M/S.EVEREADY SPINNING MILLS P.LTD., 16/23, JOTHI THEATRE ROAD, TIRUPUR-641 601 [PAN: AAACE 4788 J] I.T.A. NOS. 1842, 1843, 1844, 1845, 1846, 1847, 1848, 1849, 1850, 1851 1852, 1853 1854, 1855 & 1856 /MDS/13 2 ./ I.T.A. NO. 1845/MDS/2013 / ASSESSMENT YEAR : 2010-11 DEPUTY COMMISSIONER OF INCOME TAX, COMPANY CIRCLE, TIRUPUR VS M/S. ADISANKARA SPINNING MILLS P. LTD., 207/86, MANGALAM ROAD, KARUVAMPALAYAM, TIRUPUR [PAN: AABCA 5198 B] ./ I.T.A. NO. 1846/MDS/2013 / ASSESSMENT YEAR : 2010-11 DEPUTY COMMISSIONER OF INCOME TAX, COMPANY CIRCLE, TIRUPUR VS M/S. CHERAN SPINNING MILLS P. LTD., 20 THILLAI NAGAR, DHARAPURAM ROAD, TIRUPUR-641 608 [PAN: AAACC 8788 L] ./ I.T.A. NO. 1847/MDS/2013 / ASSESSMENT YEAR : 2010-11 DEPUTY COMMISSIONER OF INCOME TAX, COMPANY CIRCLE, TIRUPUR VS M/S. PANDIAN TEXTILE MILLS P. LTD., 20 DHARAPURAM ROAD, THILLAI NAGAR, TIRUPUR-641 608 [PAN: AABCP 5926 A] ./ I.T.A. NO. 1848/MDS/2013 / ASSESSMENT YEAR : 2010-11 DEPUTY COMMISSIONER OF INCOME TAX, COMPANY CIRCLE, TIRUPUR VS M/S. CHOLA TEXTILES P. LTD., 20 DHARAPURAM ROAD, THILLAI NAGAR, TIRUPUR-641 608 [PAN: AAACC 8791 P] I.T.A. NOS. 1842, 1843, 1844, 1845, 1846, 1847, 1848, 1849, 1850, 1851 1852, 1853 1854, 1855 & 1856 /MDS/13 3 ./ I.T.A. NO. 1849/MDS/2013 / ASSESSMENT YEAR : 2010-11 DEPUTY COMMISSIONER OF INCOME TAX, COMPANY CIRCLE, TIRUPUR VS M/S. PRABHU SPILLING MILLS P. LTD., 207/86, MANGALAM ROAD, KARUVAMPALAYAM, TIRUPUR [PAN: AABCP 0750 E] ./ I.T.A. NO. 1850/MDS/2013 / ASSESSMENT YEAR : 2010-11 DEPUTY COMMISSIONER OF INCOME TAX, COMPANY CIRCLE, TIRUPUR VS M/S. VIKING TEXTILE P. LTD., 505, AVINASHI ROAD, TIRUPUR-641 603 [PAN: AAACV 7564 P] ./ I.T.A. NO. 1851/MDS/2013 / ASSESSMENT YEAR : 2010-11 DEPUTY COMMISSIONER OF INCOME TAX, COMPANY CIRCLE, TIRUPUR VS M/S. SIVARAJ SPINNING MILLS P. LTD., 207/86, MANGALAM ROAD, KARUVAMPALAYAM, TIRUPUR [PAN: AADCS 0681 H] ./ I.T.A. NO. 1852/MDS/2013 / ASSESSMENT YEAR : 2010-11 DEPUTY COMMISSIONER OF INCOME TAX, COMPANY CIRCLE, TIRUPUR VS M/S. SRI MATHA SPINNING MILLS P. LTD., 207/86 MANGALAM ROAD, KARUVAMPALAYAM, TIRUPUR [PAN: AAECS 1881 Q] ./ I.T.A. NO. 1853/MDS/2013 / ASSESSMENT YEAR : 2010-11 DEPUTY COMMISSIONER OF INCOME TAX, COMPANY CIRCLE, TIRUPUR VS M/S. JAYAVARMA TEXTILES P. LTD., SF NO. 237/1, P N ROAD, SAKTHI NAGAR NORTH, TIRUPUR [PAN: AAACJ 7660 G] I.T.A. NOS. 1842, 1843, 1844, 1845, 1846, 1847, 1848, 1849, 1850, 1851 1852, 1853 1854, 1855 & 1856 /MDS/13 4 ./ I.T.A. NO. 1854/MDS/2013 / ASSESSMENT YEAR : 2010-11 DEPUTY COMMISSIONER OF INCOME TAX, COMPANY CIRCLE, TIRUPUR VS M/S. SUDHAN SPINNING MILLS P LTD., 207/86, MANGALAM ROAD, KARUVAMPALAYAM, TIRUPUR [PAN: AADCS 0670 E] ./ I.T.A. NO. 1855/MDS/2013 / ASSESSMENT YEAR : 2010-11 DEPUTY COMMISSIONER OF INCOME TAX, COMPANY CIRCLE, TIRUPUR VS SHRI SHANMUGAVEL SPINNING MILLS P LTD., 207/86 MANGALAM ROAD, KARUVAMPALAYAM, TIRUPUR [PAN: AADCS 8200 N] ./ I.T.A. NO. 1856/MDS/2013 / ASSESSMENT YEAR : 2010-11 DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-I, TIRUPUR ( !% /APPELLANT) VS M/S. VIKING KNITTERS, 4 VOC NAGAR, I STREET, GANDHI NAGAR PO, TIRUPUR-641 603 [PAN: AABFV 8542 R] ( &'!% /RESPONDENT) / APPELLANT BY : SHRI SHAJI P. JACOB, ADDL. CIT / RESPONDENT BY : SHRI N. VIJAY KUMAR , CA / DATE OF HEARING : 12-02-2014 /DATE OF PRONOUNCEMENT : 12-02-2014 #( / O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER: THE AFOREMENTIONED FIFTEEN APPEALS HAVE BEEN FILED BY THE REVENUE ASSAILING THE ORDER OF COMMISSIONER OF INCO ME I.T.A. NOS. 1842, 1843, 1844, 1845, 1846, 1847, 1848, 1849, 1850, 1851 1852, 1853 1854, 1855 & 1856 /MDS/13 5 TAX(APPEALS)-II, COIMBATORE IN THE CASE OF RESPECTI VE ASSESSEES. ALL THE APPEALS PERTAIN TO ASSESSMENT YEAR (AY) 201 0-11. SINCE COMMON ISSUE IS INVOLVED IN ALL THE APPEALS, ALL TH E APPEALS ARE TAKEN UP TOGETHER FOR ADJUDICATION. THE ASSESSING OFFICER HAD MADE DIS-ALLOWANCE OF DEDUCTION U/S.80IA OF THE INC OME TAX ACT, 1961 (HEREIN AFTER REFERRED TO AS THE ACT) IN THE CASE OF ALL THE ASSESSEES. THE CIT(APPEALS) FOLLOWING THE DECISION OF THE HONBLE MADRAS HIGH COURT IN THE CASE OF VELAYUDHASWAMY SPINNING MILLS (P) LTD., VS. ACIT REPORTED AS 231 CTR (MAD) 368 HAS REVERSED THE FINDINGS OF ASSESSING OFFICER. 2. SHRI SHAJI P. JACOB, APPEARING ON BEHALF OF THE REVENUE SUBMITTED THAT THE CIT(APPEALS) IN ALL THE CASES HA S FAILED TO CONSIDER THE FACT THAT ASSESSING OFFICER WAS CORREC T IN NOTIONALLY BRINGING IN AND SETTING OFF THE BROUGHT FORWARD LOS S FOR DETERMINING THE PROFITS QUALIFYING FOR DEDUCTION U/S.80IA FROM THE INITIAL AY FOR THE YEAR RELATED TO THE FINANCIAL YEAR IN WHICH OPE RATIONS RELATING TO WIND MILL INFRASTRUCTURE COMMENCED. THE LD.DR P RAYED FOR SETTING ASIDE IMPUGNED ORDERS AND RESTORE ASSESSMEN T ORDER IN ALL THE APPEALS. 3. ON THE OTHER HAND, SHRI N. VIJAY KUMAR, APPEARIN G ON BEHALF OF THE ASSESSEES SUBMITTED THAT THE ASSESSEES ARE T EXTILE I.T.A. NOS. 1842, 1843, 1844, 1845, 1846, 1847, 1848, 1849, 1850, 1851 1852, 1853 1854, 1855 & 1856 /MDS/13 6 MANUFACTURING UNITS AND ARE HAVING WIND MILL UNDERT AKINGS AS SEPARATE DIVISION. FOR THE RELEVANT AY, THE ASSES SEES HAD CLAIMED DEDUCTION U/S.80IA ON THE PROFITS OF THE EL IGIBLE UNDERTAKING. THE ASSESSING OFFICER DIS-ALLOWED THE CLAIM OF THE ASSESSEE U/S.80IA WITHOUT PROPER APPRECIATING THE L AW AND THE JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT. THE CIT(APPEALS) HAS PASSED A WELL REASONED ORDER BY FO LLOWING THE JUDGMENT OF THE HONBLE MADRAS HIGH COURT IN THE CA SE OF VELAYUDHASWAMY SPINNING MILLS (P) LTD., VS. ACIT (SUPRA) . THE LD.AR VEHEMENTLY SUPPORTED THE ORDER OF THE CIT(APP EALS) AND PRAYED FOR THE DISMISSAL OF THE APPEALS OF THE REVE NUE. 4. WE HAVE HEARD THE SUBMISSIONS MADE BY THE REPRESENTATIVES OF BOTH THE SIDES AND HAVE ALSO PER USED THE ORDERS OF THE AUTHORITIES BELOW, AS WELL AS THE JUDGMENT O F THE HONBLE MADRAS HIGH COURT IN THE CASE OF VELAYUDHASWAMY SPINNING MILLS (P) LTD., VS. ACIT (SUPRA). WE FIND THAT IN ALL THE APPEALS, IDENTICA L ISSUE HAS BEEN RAISED BY THE REVENUE. THE ISSUE IN HAND IS SQUARELY COVERED BY THE DECISION OF THE JURISDICTIO NAL HIGH COURT IN THE CASE OF VELAYUDHASWAMY SPINNING MILLS (P) LTD., VS. ACIT (SUPRA). I.T.A. NOS. 1842, 1843, 1844, 1845, 1846, 1847, 1848, 1849, 1850, 1851 1852, 1853 1854, 1855 & 1856 /MDS/13 7 5. THE CIT(APPEALS) HAS FOLLOWED THE DECISION OF TH E JURISDICTIONAL HIGH COURT IN THE ABOVE MENTIONED AL L THE CASES AND HAS DIRECTED THE ASSESSING OFFICER TO COMPUTE THE P ROFITS U/S.80IA(5) AS IF SUCH ELIGIBLE BUSINESS IS THE ONL Y SOURCE OF INCOME OF THE ASSESSEE AND ONLY THE LOSSES OF THE Y EARS BEGINNING FROM THE INITIAL AY ARE TO BE BROUGHT FORWARD AND N OT THE LOSSES OF EARLIER YEARS WHICH HAVE BEEN ALREADY SET OFF AGAIN ST THE INCOME OF THE ASSESSEE. WE CONCUR WITH THE FINDINGS OF THE CIT(APPEALS). T HE LD.DR HAS NOT BEEN ABLE TO CONTROVERT THE FINDINGS OF THE CIT(APPEALS) OR HAS BEEN ABLE TO SHOW ANY JUDGMENT CONTRARY TO THE JUDGMENT ON WHICH RELIANCE HAS BEEN PLACED BY THE LD.AR OF THE ASSESSEE. THERE IS NO INFIRMITY IN THE IMPUGNED ORDERS. ALL THE APPEALS OF THE REVENUE ARE DISMISSED BEING DEVOID OF MERIT. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON WEDNESDAY, THE 12 TH FEBRUARY, 2014 AT CHENNAI. SD/- SD/- (DR. O.K. NARAYANAN) (VIK AS AWASTHY) VICE PRESIDENT JUDICIAL MEMBER DATED: 12 TH FEBRUARY, 2014 TNMM COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR