ACIT, Tiruppur V. Meera Textiles Mills P Ltd., Tiruppur

ITA 2033/CHNY/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 81217 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-10-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 28-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Assessee Lawyers: N VIJAY KUMAR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI ... , ! '# $% , & #'$ #( BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENTAND SHRI VIKAS AWASTHY, JUDICIAL MEMBER # ./ ITA NO.2032/MDS/2014 & * +* / ASSESSMENT YEAR : 2010-11 THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE, 121, 60 FEET ROAD, TIRUPUR 2. V. M/S EXCEL COTSPIN INDIA P LTD., NO.21, THILAI NAGAR, DHARAPURAM ROAD, TIRUPUR 641 608. PAN : AAACE 9365 K (%-/ APPELLANT) (./%-/ RESPONDENT) # ./ ITA NO.2033/MDS/2014 & * +* / ASSESSMENT YEAR : 2010-11 THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE, 121, 60 FEET ROAD, TIRUPUR 2. V. M/S MEERA TEXTILES MILLS P LTD., NO.20, THILAI NAGAR, DHARAPURAM ROAD, TIRUPUR 641 608. PAN : AABCM 9581 E # ./ ITA NO.2036/MDS/2014 & * +* / ASSESSMENT YEAR : 2011-12 THE ASSISTANT COMMISSIONER OF INCOME TAX, WARD I(4), 121, 60 FEET ROAD, TIRUPUR 2. V. M/S ANAND TEXTILES, NO.527, AVINASHI ROAD, TIRUPUR 641 603. PAN : AAHFA 5867 E 2 I.T.A. NOS.2032, 2033, 2036 & 2040/MDS/14 # ./ ITA NO.2040/MDS/2014 & * +* / ASSESSMENT YEAR : 2011-12 THE ASSISTANT COMMISSIONER OF INCOME TAX, WARD I(4), 121, 60 FEET ROAD, TIRUPUR 2. V. M/S N S P TEX, NO.1/287-A, P N ROAD, PONGUPALAYAM PO, PERUMANALLUR, TIRUPUR-641 666 PAN : AACFN 3727 F %- 0 #/ APPELLANT BY : SHRI A.V. SREEKANTH, JCIT ./%- 0 # / RESPONDENTS BY : SHRI N. VIJAY KUMAR, CA # 1 0 23 / DATE OF HEARING : 28 TH OCTOBER, 2014 45+ 0 23 / DATE OF PRONOUNCEMENT : 28 TH OCTOBER, 2014 / O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER: THESE APPEALS HAVE BEEN FILED BY THE REVENUE IMPU GNING THE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEA LS) II, COIMBATORE, FOR ACCEPTING DEDUCTION CLAIMED BY THE ASSESSEES UNDER SECTION 80-IA OF THE INCOME-TAX ACT, 1961. I .T.A. NOS.2032 & 2033/MDS/2014 RELATE TO ASSESSMENT YEAR 2010-11 AND I.T.A. NOS.2036 & 2040/MDS/2014 RELATE TO ASSESSMENT YEAR 2011-12. ALL THE IMPUGNED ORDERS ARE DATED 30.04.2014. THE APPE ALS HAVE BEEN FILED WITH A DELAY OF 6 DAYS. 3 I.T.A. NOS.2032, 2033, 2036 & 2040/MDS/14 2. THE REVENUE HAS FILED AN AFFIDAVIT OF ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE, TIRUPUR CITING REASONS FOR DELAY IN FILING OF THE APPEALS. AFTER PERUSING THE SAME, WE ARE SATISFIED THAT THE DELAY IN FILING THE APPEA LS WAS UNINTENTIONAL AND NOT WILFUL. THE DELAY OF 6 DAYS IN FILING OF T HE APPEALS IS CONDONED. THE APPEALS ARE ADMITTED FOR DISPOSAL ON MERITS. 3. THE ASSESSEES IN THEIR RESPECTIVE RETURN OF INCO ME HAD CLAIMED DEDUCTION UNDER SECTION 80-IA, BASED ON THE JUDGMENT OF HON'BLE MADRAS HIGH COURT IN THE CASE OF VELAYUDHAS WAMY SPINNING MILLS (P) LTD. V. ACIT (340 ITR 477). THE A.O. IN THE CASE OF RESPECTIVE ASSESSEES REFUSED TO ACCEPT THEIR SUB MISSIONS ON THE GROUND THAT THE DEPARTMENT HAS FILED A SPECIAL LEAV E PETITION BEFORE THE HON'BLE SUPREME COURT OF INDIA AGAINST T HE JUDGMENT RENDERED IN THE CASE OF VELAYUDHASWAMY SPINNING MIL LS (P) LTD. (SUPRA) AND THE SAID SLP HAS BEEN ADMITTED AND IS P ENDING FOR FINAL ADJUDICATION. AGAINST THE ASSESSMENT ORDERS, ASSESSEES CARRIED APPEALS BEFORE THE CIT(APPEALS). THE FIRST APPELLATE AUTHO RITY ACCEPTED THE SUBMISSIONS OF THE ASSESSEES AND ALLOWED THE APPEAL S BY FOLLOWING THE JUDGMENT OF THE HON'BLE JURISDICTIONAL HIGH COU RT RENDERED IN THE CASE OF VELAYUDHASWAMY SPINNING MILLS (P) LTD. (SUP RA). 4 I.T.A. NOS.2032, 2033, 2036 & 2040/MDS/14 NOW THE REVENUE HAS COME IN APPEALS BEFORE THE TR IBUNAL ASSAILING THE FINDINGS OF THE CIT(APPEALS). THE GR OUND RAISED BY THE REVENUE IN I.T.A. NOS.2032 & 2033/MDS/2014 IS THAT THE CIT(APPEALS) HAS ERRED IN HOLDING THAT THE ASSESSME NT YEAR 2005- 06 IS THE FIRST INITIAL ASSESSMENT YEAR IN WHICH TH E ASSESSEES HAD CLAIMED DEDUCTION UNDER SECTION 80-IA, THEREFORE DE PRECIATION OF EARLIER YEARS WHICH HAVE ALREADY BEEN ABSORBED CANN OT BE NOTIONALLY CARRIED FORWARD AND CONSIDERED IN COMPUT ING THE QUANTUM OF DEDUCTION UNDER SECTION 80-IA OF THE ACT. IN I.T.A. NOS.2036 & 2040/MDS/2014, THE CONTENTIO N OF THE REVENUE IS THAT THE CIT(APPEALS) HAS FAILED TO CONS IDER THE FACT THAT THE A.O. WAS CORRECT IN NOTIONALLY BRINGING IN AND SETTING OFF THE BROUGHT FORWARD LOSS FOR DETERMINING PROFITS QUALIF YING FOR DEDUCTION UNDER SECTION 80-IA FROM THE INITIAL ASSESSMENT YEA R BEING THE YEAR RELEVANT TO THE FINANCIAL YEAR IN WHICH OPERATIONS RELATING TO THE WINDMILLS INFRASTRUCTURE COMMENCED. 4. SHRI A.V. SREEKANTH, JCIT, REPRESENTING THE DEPA RTMENT, VEHEMENTLY DEFENDED THE ASSESSMENT ORDERS AND REITE RATED THE GROUNDS RAISED IN THE APPEALS. 5 I.T.A. NOS.2032, 2033, 2036 & 2040/MDS/14 5. ON THE OTHER HAND, SHRI N. VIJAY KUMAR, CA, APPE ARING ON BEHALF OF THE ASSESSEES, SUBMITTED THAT THE ISSUE R AISED BY THE REVENUE IN APPEALS IS SQUARELY COVERED BY THE JUDGM ENT OF HON'BLE MADRAS HIGH COURT IN THE CASE OF VELAYUDHASWAMY SPI NNING MILLS (P) LTD. (SUPRA). THE LD. A.R. PRAYED FOR SUSTAINI NG THE ORDERS OF THE CIT(APPEALS). 6. WE HAVE HEARD THE SUBMISSIONS OF THE REPRESENTAT IVES OF BOTH SIDES AND PERUSED THE ORDERS OF AUTHORITIES BE LOW, AS WELL AS THE JUDGMENT ON WHICH THE LD. A.R. HAS PLACED RELIA NCE. WE FIND THAT THE ISSUE RAISED IN APPEALS BY THE REVENUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEES BY THE JUDGMENT OF HON'B LE JURISDICTIONAL HIGH COURT IN THE CASE OF VELAYUDHASWAMY SPINNING M ILLS (P) LTD. (SUPRA). CLAIM OF THE ASSESSEES HAS BEEN REJECTED BY THE A.O. ONLY ON THE GROUND THAT THE DEPARTMENT HAS FILED SLP BEF ORE THE HON'BLE APEX COURT, THE SAME HAS BEEN ADMITTED AND IS PENDI NG FOR FINAL ADJUDICATION. WE ARE OF THE VIEW THAT THIS CANNOT BE A GROUND F OR DENYING BENEFIT TO THE ASSESSEES. THE APPEALS OF THE REVEN UE ARE ACCORDINGLY DISMISSED AND THE FINDINGS OF THE CIT(A PPEALS) ARE CONFIRMED. 6 I.T.A. NOS.2032, 2033, 2036 & 2040/MDS/14 7. IN THE RESULT, ALL THE APPEALS FILED BY THE REVE NUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AFTER HEARING ON TUESDAY, THE 28 TH OF OCTOBER, 2014 AT CHENNAI. SD/- SD/- ( ... ) ( '# $% ) (DR. O.K. NARAYANAN) (VIKAS AWASTHY) /VICE-PRESIDENT & #'$ /JUDICIAL MEMBER /CHENNAI, G' /DATED, THE 28 TH OCTOBER, 2014. KRI. 'H 0 .&2I' J'+2 /COPY TO: 1. %- /APPELLANT 2. ./%- /RESPONDENTS 3. 1 K2 () /CIT(A)-II, COIMBATORE 4. 1 K2 /CIT-III, COIMBATORE 5. 'LM .&2& /DR 6. M* N /GF.