ITO, Tiruppur V. M/s. Nanco Hosiery Mills, Tiruppur

ITA 1966/CHNY/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 73741 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 27-02-2014
• Assessment Year: 2010-2011
• Appeal Filed On: 08-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R KUMAR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , A B ENCH, CHENNAI . , ! ' , # $ BEFORE SHRI A.MOHAN ALANKAMONY ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ITA NO. APPELLANT /RESPONDENT 1966/MDS/2013 (A.Y. 2010-11) INCOME TAX OFFICER, COMPANY WARD-I (4), 121, 60 FEET ROAD, TIRUPUR. M/S. NANCO HOSIERY MILLS , SF NO.363/1, THANNEERPANDAL COLONY, AVINASHI ROAD, TIRUPUR-641 652. PAN: AACFN4222D 1967/MDS/2013 (A.Y.2010-11) INCOME TAX OFFICER, COMPANY WARD-I (5), 121, 60 FEET ROAD, TIRUPUR. M/S.SRI BAGYALAKSHMI SPINNERS, NO.97/2B,KARAVALIMATHAPUR, SOMANUR, TIRUPUR-641 668. PAN: AAHFS5370A / APPELLANT BY : MR. SHAJI P.JACOB, ADDL. CIT /RESPONDENT BY : MR. R.KUMAR, ADVOCATE / DATE OF HEARING : 27 TH FEBRUARY, 2014 /DATE OF PRONOUNCEMENT : 7 TH MARCH, 2014 % / O R D E R PER CHALLA NAGENDRA PRASAD, JM: BOTH THESE APPEALS ARE FILED BY THE REVENUE AGAINS T THE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEA LS)-II, COIMBATORE DATED 29.08.2013 FOR THE ASSESSMENT YE AR 2010-11. SINCE THE ISSUE INVOLVED IN BOTH THESE AP PEALS IS COMMON, THEY ARE DISPOSED OFF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. ITA NO.1966 & 1967/MDS/2013 2 2. THE ONLY GRIEVANCE OF THE REVENUE IN BOTH THESE APPEALS IS THAT COMMISSIONER OF INCOME TAX (APPEALS ) ERRED IN DELETING THE ADDITION MADE ON ACCOUNT OF DISALLO WANCE UNDER SECTION 80-IA OF THE ACT. THE ASSESSING OFFIC ER WHILE COMPLETING THE ASSESSMENT DISALLOWED DEDUCTION CLAI MED BY THE ASSESSEE UNDER SECTION 80IA OF THE ACT STATING THAT AS PER PROVISIONS OF SECTION 80IA(5) OF THE ACT, ASSES SEE IS ELIGIBLE TO CLAIM DEDUCTION FROM THE INITIAL ASSESS MENT YEAR BEING THE YEAR IN WHICH ASSESSEE COMMENCED THE ELIG IBLE BUSINESS. THE ASSESSEES CLAIM FOR DEDUCTION UNDER SECTION 80IA WAS MADE AS INITIAL ASSESSMENT YEAR. THE ASSES SEE PLACED RELIANCE ON THE DECISION OF THE JURISDICTION AL HIGH COURT IN THE CASE OF M/S. VELAYUDHASWAMY SPINNING MILLS P .LTD. HOWEVER, THE ASSESSING OFFICER DENIED DEDUCTION UND ER SECTION 80IA OF THE ACT. ON APPEAL, THE COMMISSIONE R OF INCOME TAX (APPEALS) ALLOWED CLAIM OF THE ASSESSEE FOLLOWING THE DECISION OF THE JURISDICTIONAL HIGH COURT IN TH E CASE OF M/S.VELAYUDHASWAMY SPINNING MILLS P. LTD. VS. ACIT (231 CTR 368). THE REVENUE IS IN APPEAL IN BOTH THE CAS ES ITA NO.1966 & 1967/MDS/2013 3 AGAINST THE ORDERS OF COMMISSIONER OF INCOME TAX (A PPEALS) IN ALLOWING THE CLAIM OF THE ASSESSEES. 3. DEPARTMENTAL REPRESENTATIVE RELIES ON THE ORDER OF THE ASSESSING OFFICER WHEREAS THE COUNSEL FOR THE ASSES SEE RELIES ON THE ORDER OF THE COMMISSIONER OF INCOME TAX (APP EALS) AND THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF M/S.VELAYUDHASWAMY SPINNING MILLS P.LTD. (S UPRA). 4. HEARD BOTH SIDES. PERUSED THE ORDERS OF LOWER AUTHORITIES AND THE CASE LAW RELIED ON. THE ASSESS ING OFFICER WAS OF THE VIEW THAT PER PROVISIONS OF SECTION 80IA (5) OF THE ACT, ASSESSEE IS ELIGIBLE TO CLAIM DEDUCTION FROM T HE INITIAL ASSESSMENT YEAR BEING THE YEAR IN WHICH ASSESSEE COMMENCED THE ELIGIBLE BUSINESS. HOWEVER, COMMISSI ONER OF INCOME TAX (APPEALS) ALLOWED CLAIM OF THE ASSESS EE FOLLOWING THE DECISION OF THE JURISDICTIONAL HIGH C OURT IN THE CASE OF M/S.VELAYUDHASWAMY SPINNING MILLS P. LTD. O BSERVING AS UNDER:- I HAVE CONSIDERED THE SUBMISSIONS OF THE APPELLANT AND THE MATERIALS AVAILABLE ON RECORD. A PERUSAL OF THE ASSESSMENT ORDER AND THE ASSESSEES SUBMISSION WOUL D INDICATE THAT THE ISSUE IS SQUARELY COVERED BY THE ITA NO.1966 & 1967/MDS/2013 4 JURISDICTIONAL HIGH COURT IN THE CASE OF M/S.VELAYUDHASWAMY SPINNING MILLS P.LTD.VS. ACIT (2 31 CTR 368) IN ASSESSEES FAVOUR. THEREFORE, ADDITION OF ` 11,76,870/- MADE ON ACCOUNT OF DISALLOWANCE OF DEDUCTION U/S.80IA STANDS DELETED IN THE HANDS OF T HE ASSESSEE. 5. THE HONBLE JURISDICTIONAL HIGH COURT IN THE CAS E OF M/S. VELAYUDHASWAMY SPINNING MILLS LTD. (SUPRA) HELD THA T INITIAL ASSESSMENT YEAR AS MENTIONED IN SECTION 80IA MEANS THE YEAR IN WHICH ASSESSEE BEGINS TO CLAIM DEDUCTION UN DER SECTION 80IA BUT NOT THE YEAR IN WHICH BUSINESS COM MENCED BY THE ASSESSEE. THEREFORE, RESPECTFULLY FOLLOWING THE SAID DECISION, WE AFFIRM THE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS) AND REJECT THE GROUNDS OF APPEAL RAIS ED BY THE REVENUE IN BOTH THE APPEALS. 6. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A RE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON FRIDAY, THE 7 TH DAY OF MARCH, 2014 AT CHENNAI. SD/- SD/- (A.MOHAN ALANKAMONY) (CHALLA NAGEN DRA PRASAD) ACCOUNTANT MEMBER JUDI CIAL MEMBER CHENNAI, DATED THE 7 TH MARCH, 2014. SOMU ITA NO.1966 & 1967/MDS/2013 5 COPY TO: (1) APPELLANT (4) CIT(A) (2) RESPONDENT (5) D.R (3) CIT (6) G.F.