DCIT, Coimbatore V. Premier Spinning & Weaving Mills Pvt Ltd., Coimbatore

ITA 1908/CHNY/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 86243 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 31-12-2015
• Assessment Year: 2012-2013
• Appeal Filed On: 31-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A B KOLI IRS
• Assessee Lawyers: R VIJAYARAGHAVAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI , . , ! ' BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER ./ I.T.A.NO. 1908/MDS/2015 ! # $# / ASSESSMENT YEAR : 2012-2013 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE -1, COIMBATORE VS. M/S. PREMIER SPINNING & WEAVING MILLS PVT. LTD NO.1, NAVA INDIA ROAD, COIMBATORE 641 028. [PAN AABCP 3032D ] %& ' ( / APPELLANT BY : SHRI. A.B. KOLI, IRS, JCIT. )*%& ' ( /RESPONDENT BY : SHRI. R. VIJAYARAGHAVAN, ADVOCATE ./ I.T.A.NO. 1909/MDS/2015 ! # $# / ASSESSMENT YEAR : 2012-2013 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE -1, COIMBATORE VS. M/S. BRINDAVAN COTTON MILLS PVT. LTD NO.119-C, SELVAPURAM COLONY, SOMANUR, COIMBATORE 641 668. . [PAN AABCB 8937C ] ( / APPELLANT) ( /RESPONDENT) %& ' ( / APPELLANT BY : SHRI. A.B. KOLI, IRS, JCIT. )*%& ' ( /RESPONDENT BY : SHRI. VIJAYKUMAR, C.A. ' + / DATE OF HEARING : 31-12-2015 ,-$ ' + / DATE OF PRONOUNCEMENT : 06-01-2016 ITA NOS.1908 & 1909/MDS/2015 :- 2 -: / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER : THESE TWO APPEALS BY REVENUE ARE DIRECTED AGAINST DIFFERENT ORDERS OF COMMISSIONER OF INCOME TAX (AP PEALS)-1, COIMBATORE FOR THE ASSESSMENT YEAR 2012-2013. SINC E THE ISSUE IN THESE APPEALS ARE COMMON IN NATURE, THESE APPEALS A RE CLUBBED, HEARD TOGETHER, AND DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 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. WE CONSIDER THE FACTS AS NARRATED IN ITA NO.1908/MDS/ 2015 FOR ADJUDICATION. 3. THE ASSESSEE HAS INSTALLED NINE WIND MILLS IN ASSE SSMENT YEAR 2007-2008. THE ASSESSEE HAS OPTED THE INITIAL ASSESSMENT YEAR AS 2012-2013 AND IT CLAIMED 80IA DEDUCTION FOR THIS ASSESSMENT YEAR AS FIRST YEAR OF DEDUCTION FOR THOSE NINE WINDMILLS ESTABLISHED IN ASSESSMENT YEAR 2007-2008. THE DEPRECATION OF LOSS OF THIS WIND MILL UNITS HAD ALREADY BEEN SET OFF IN EARLIER YEAR ASSE SSMENT YEARS AGAINST ITA NOS.1908 & 1909/MDS/2015 :- 3 -: THE PROFITS GENERATED FROM OTHER BUSINESS CARRIED O N BY THE ASSESSEE. THE ASSESSING OFFICER REJECTED THE CLAIM OF THE ASS ESSEES ON THE GROUND THAT THE DEPARTMENT HAS FILED A SPECIAL LEAV E PETITION AGAINST 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 H IGH COURT ALLOWED THE CLAIM OF THE ASSESSEES. 4. 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) HAS RIGHTLY ALLOWED THE CLAIM OF THE ASSESSEES BY F OLLOWING THE BINDING JUDGMENT OF MADRAS HIGH COURT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD (SUPRA) . THEREFORE, THIS TRIBUNAL DO NOT FIND ANY INFIRMI TY IN THE ITA NOS.1908 & 1909/MDS/2015 :- 4 -: ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS). 5. IN THE RESULT, THE APPEALS OF THE REVENUE ARE DISM ISSED. ORDER PRONOUNCED ON WEDNESDAY, THE 6TH DAY OF JAN UARY, 2016, AT CHENNAI. SD/- SD/- ( . ) (G. PAVAN KUMAR) /JUDICIAL MEMBER ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER / CHENNAI . / DATED:06.01.2016 KV / ' )!+12 32$+ / COPY TO: 1 . %& / APPELLANT 3. 4+ () / CIT(A) 5. 278 )!+! / DR 2. )*%& / RESPONDENT 4. 4+ / CIT 6. 89# : / GF