DCIT, Tiruppur V. Royal Classic Mills Pvt Ltd., Tiruppur

ITA 1896/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 8435 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 20-09-2016
• Assessment Year: 2013-2014
• Appeal Filed On: 22-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUPRIYA PAL IRS
• Assessee Lawyers: N VIJAY KUMAR
• Keywords: Depreciation; Unabsorbed depreciation

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI . , . , BEFORE SHRI ABRAHAM P. GEORGE , ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER ./I.T.A. NO. 1894/MDS/2016 / ASSESSMENT YEAR : 2013-2014 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -2, 121, SIXTY FEED ROAD, TIRPUPUR 641 602 VS. M/S. COTTON BLOSSOM INDIA PVT. LTD, SHED NO.189, TEKIC TEA NAGAR, SIDCO, MUDALIPALAYAM, TIRUPUR 641 606. [PAN AACCC 5046R ] ! ' # / APPELLANT BY : SHRI. SUPRIYA PAL, IRS, JCIT. $% ! ' # /RESPONDENT BY : SHRI. N. VIJAYKUMAR, C.A. ./I.T.A. NO. 1895/MDS/2016 / ASSESSMENT YEAR : 2013-2014 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -2, 121, SIXTY FEED ROAD, TIRPUPUR 641 602 VS. M/S. ANUGRAHA FASHION MILLS PVT. LTD, NO.15, SURIYAN NAGAR, ABT ROAD NEW EXTN, KARUVAMPALAYAM, TIRUPUR 641 604. [PAN AAHCA 3311Q] ! ' # / APPELLANT BY : SHRI. SUPRIYA PAL, IRS, JCIT. $% ! ' # /RESPONDENT BY : SHRI. N. VIJAYKUMAR, C.A. ITA NOS.1894 TO 97/16 :- 2 -: ./I.T.A. NO. 1896/MDS/2016 / ASSESSMENT YEAR : 2013-2014 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -2, 121, SIXTY FEED ROAD, TIRPUPUR 641 602 VS. M/S. ROYAL CLASSIC MILLS PVT. LTD, NO.31, PULIAMARA THOTTAM, MANGALAM ROAD, TIRUPUR 641 604. [PAN AABCR 1226M] ! ' # / APPELLANT BY : SHRI. SUPRIYA PAL, IRS, JCIT . $% ! ' # /RESPONDENT BY : SHRI. A.S. SRIRAMAN, ADV. ./I.T.A. NO. 1897/MDS/2016 / ASSESSMENT YEAR : 2012-2013 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -2, 121, SIXTY FEED ROAD, TIRPUPUR 641 602 VS. M/S. CENTWIN TEXTILE MILLS PVT. LTD, S.F. NO.100, PALLADAM ROAD TIRUPUR 641 604. [PAN AAACC 8793R] ( ! /APPELLANT ) ( /RESPONDENT) ! ' # / APPELLANT BY : SHRI. SUPRIYA PAL, IRS, JCI T. $% ! ' # /RESPONDENT BY : SHRI. N. VIJAYKUMAR, C.A. & ' '( /DATE OF HEARING : 20-09-2016 )* ' '( /DATE OF PRONOUNCEMENT : 23-09-2016 ITA NOS.1894 TO 97/16 :- 3 -: ! / O R D E R PER SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER: THESE APPEALS FILED BY THE REVENUE ARE DIRECTED A GAINST THE ORDERS OF THE LD. COMMISSIONER OF INCOME TAX (APPEA LS), COIMBATORE GRANTING THE CLAIM FOR DEDUCTION U/S.80IA OF THE IN COME TAX ACT, 1961 (HEREIN AFTER REFERRED TO AS THE ACT). 2. LD. COMMISSIONER OF INCOME TAX (APPEALS) HAD TAKEN A VIEW THAT UNABSORBED DEPRECIATION OF EARLIER YEARS PRIOR TO THE INITIAL YEAR OF PREFERRING A CLAIM UNDER DEDUCTION U/S.80 IA OF THE ACT WAS NOT TO BE NOTIONALLY CARRIED FORWARD AND SET OFF BE FORE GRANTING SUCH DEDUCTION. THE LD. COMMISSIONER OF INCOME TAX (APP EALS) HAD FOLLOWED THE JUDGMENT OF HONBLE JURISDICTIONAL HIG H COURT IN THE CASE OF M/S. SRI VALAYUTHASAMY SPINNING MILLS LTD VS. ACIT 340 ITR 477 . THE CONTENTION OF THE REVENUE BEFORE US IS THAT TH E ASSESSEES HAD CLAIMED DEDUCTION U/S 80IA(4) OF THE ACT WITHOUT SETTING OFF OF THE DEPRECIATION OF THE SAID UNITS FOR THE EARLIER YEAR S. AS AGAINST THIS, CLAIM OF THE ASSESSEES ARE THAT SUCH DEPRECIATION LOSS WAS ALREADY ADJUSTED AND THEREFORE, NOTIONAL LOSS COULD NOT BE BROUGHT FORWARD AND FORCIBLY SET OFF AGAINST THE PROFITS OF THE IMPUGNE D ASSESSMENT YEARS. WE FIND THAT THE ISSUE RAISED IN THESE APPEALS IS S QUARELY COVERED BY THE JUDGMENT OF THE JURISDICTIONAL HIGH COURT IN TH E CASE OF ITA NOS.1894 TO 97/16 :- 4 -: VELAYUDHASWAMY SPINNING MILLS P. LTD (SUPRA ). ONCE EARLIER LOSSES HAD BEEN SET OFF AGAINST OTHER INCOME, THERE IS NO QUES TION OF NOTIONAL ADJUSTMENT OF SUCH LOSSES AGAINST THE PROFITS OF A GIVEN YEAR AS PER THE ABOVE JUDGMENT, WHILE WORKING OUT DEDUCTION CL AIMED U/S 80IA OF THE ACT. SINCE THE CIT(A) HAD FOLLOWED THE JUDGMEN T OF THE MADRAS HIGH COURT, WE DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE CIT(A). 3. IN THE RESULT, THE APPEALS OF THE OF THE REVENUE AR E DISMISSED. ORDER PRONOUNCED ON FRIDAY, THE 23RD DAY OF SEPTE MBER, 2016, AT CHENNAI. SD/- ( . ) (G. PAVAN KUMAR) $ % & / JUDICIAL MEMBER SD/- ( . ) (ABRAHAM P. GEORGE) ' % & / ACCOUNTANT MEMBER +& / CHENNAI , / DATED: 23 RD SEPTEMBER, 2016 KV - ' $'./ 0/' / COPY TO: 1 . ! / APPELLANT 3. 1' () / CIT(A) 5. /45 $'6 / DR 2. $% ! / RESPONDENT 4. 1' / CIT 6. 57 8& / GF