DCIT, Coimbatore V. Shri Marappakavundar Kandasamy, Coimbatore

ITA 2091/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 8367 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-10-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 11-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUPRIYO PAL
• Assessee Lawyers: S SRIDHAR
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , B B ENCH, CHENNAI . . . , . , & BEFORE SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.2091/MDS/2016 ( / ASSESSMENT YEAR: 2012-13) THE ASSISTANT COMMISSIONER OF INCOME TAX, NON-CORPORATE CIRCLE-4. COIMBATORE. VS MR.MARAPPAKAVUNDAR KANDASAMY, PROP. SANTHI CASTING WORKS, KUMARAPURAM NARASIMMANAICKENPALAYAM PO COIMBATORE-641 031 PAN:AFAPK5301D ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. SUPRIYO PAL, JCIT /RESPONDENT BY : MR. S.SRIDHAR, ADVOCATE /DATE OF HEARING : 4 TH OCTOBER,2016 /DATE OF PRONOUNCEMENT : 6 TH OCTOBER, 2016 / O R D E R PER A. MOHAN ALANKAMONY, AM:- THIS APPEAL IS FILED BY THE REVENUE AGGRIEVED BY T HE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS)- 3, COIMBATORE DATED 08.04.2016 IN ITA NO.52/15-16 P ASSED UNDER SECTION 143(3) R.W.S. 250(6) OF THE ACT. 2. THE REVENUE HAS RAISED SEVERAL GROUNDS IN ITS APPEAL, HOWEVER, THE CRUX OF THE ISSUE IS AS FOLLOWS:- THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN ALLOWING THE CLAIM OF DEDUCTION UNDER SECTION 80IA OF THE ACT FOR 2 ITA NO.2091 /MDS/2016 RS.1,07,18,597/- BY FOLLOWING THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF SRI VELAYUTHASAMY SPINNING MILLS P.LTD. REPORTED IN 236 CTR 368. 3. BRIEF FACTS ARE THAT THE ASSESSEE IS AN INDIVIDU AL ENGAGED IN THE BUSINESS OF MANUFACTURING OF CASTING AND GENERATION OF POWER BY WINDMILL FILED HIS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2012-13 ON 28.09.2012 ADMITTING INCOME OF RS.11,03,272/-, WHICH WAS SUBSEQUENTLY RE VISED DECLARING NIL INCOME CLAIMING REFUND OF RS.4,07,727 /-. THE CASE WAS SELECTED FOR SCRUTINY AND NOTICE UNDER SEC TION 143(2) DATED 06.08.2013 WAS ISSUED TO THE ASSESSEE. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, IT WAS NOTICE D BY THE LEARNED ASSESSING OFFICER THAT THE ASSESSEE HAS CLA IMED DEDUCTION OF RS.1,07,18,597/- UNDER SECTION 80IA OF THE ACT TOWARDS THE INCOME GENERATED FROM WINDMILL RELYING IN THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT I N THE CASE OF SRI VELAYUDHASAMY SPINNING MILLS PVT.LTD. REPORTED 231 CTR 368. HOWEVER, THE LEARNED ASSESSING OFFICER WAS OF THE VIEW THAT SINCE THE ISSUE HAS NOT BECOME FINAL AS THE DE PARTMENT HAS FILED SLP BEFORE THE HONBLE SUPREME COURT WHIC H IS 3 ITA NO.2091 /MDS/2016 PENDING FOR DECISION, DISALLOWED THE CLAIM OF DEDUC TION UNDER SECTION 80IA OF THE ACT IN ORDER TO KEEP THE ISSUE ALIVE. 4. ON APPEAL, THE LEARNED COMMISSIONER OF INCOME T AX (APPEALS) ALLOWED THE DEDUCTION OF RS.1,07,18,597/- CLAIMED BY THE ASSESSEE UNDER SECTION 80IA OF THE ACT IN V IEW OF THE BINDING DECISION OF THE JURISDICTIONAL HIGH COURT I N THE CASE OF CIT VS.SRI VELAYUTHASAMY SPINNING MILS LTD. CITED S UPRA. 5. BEFORE US, THE LEARNED DEPARTMENTAL REPRESENTATI VE ARGUED IN SUPPORT OF THE ORDER OF THE LEARNED ASSES SING OFFICER WHILE AS THE LEARNED AUTHORIZED REPRESENTAT IVE ARGUED IN SUPPORT OF THE ORDER OF THE LEARNED COMMI SSIONER OF INCOME TAX (APPEALS) AND RELIED ON THE DECISION OF THE HONBLE JURISDICTIONAL MADRAS HIGH COURT IN THE CAS E OF SRI VELAYUDHASAMY SPINNING MILLS LTD. CITED SUPRA. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND CAREFULL Y PERUSED THE MATERIAL ON RECORD. FROM THE FACTS OF T HE CASE, WE ARE OF THE CONSIDERED VIEW THAT THE LEARNED COMM ISSIONER OF INCOME TAX (APPEALS) HAS RIGHTLY FOLLOWED THE DE CISION OF 4 ITA NO.2091 /MDS/2016 THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF SRI VELAYUDHASWAMY SPINNING MILLS PVT.LTD. CITED SUPRA AND THEREBY ALLOWED THE CLAIM OF THE ASSESSEE UNDER SEC TION 80IA OF THE ACT. FURTHER, IT IS NOT THE CASE OF THE REV ENUE THAT THE JUDGMENT OF THE HONBLE MADRAS HIGH COURT IN THE CA SE VELAYUDHASWAMY SPINNING MILLS P. LTD (SURPA) IS STA YED BY THE HONBLE APEX COURT. IT IS PERTINENT TO MENTION THAT IN THE ABSENCE OF ANY STAY GRANTED BY THE HONBLE APEX COU RT AGAINST THE OPERATION OF THE JUDGMENT OF THE HONBL E MADRAS HIGH COURT, ALL THE LOWER JUDICIARIES AS WELL AS QU ASI JUDICIAL AUTHORITIES ARE BOUND TO FOLLOW THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT. SINCE THE LEARNED COMMI SSIONER OF INCOME TAX (APPEALS) HAS RIGHTLY FOLLOWED THE DECI SION OF THE HONBLE JURISDICTIONAL MADRAS HIGH COURT(SUPRA) AND HELD THE ISSUE IN FAVOUR OF THE ASSESSEE, WE DO NOT FIND IT NECESSARY TO INTERFERE WITH THE ORDERS OF THE LEARNED COMMISS IONER OF INCOME TAX (APPEALS). THEREFORE WE HEREBY CONFIRM THE ORDERS OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS). 5 ITA NO.2091 /MDS/2016 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 6 TH OCTOBER, 2016 SD/- SD/- ( . . . ) ( . ) (N.R.S.GANESAN) ( A.M OHAN ALANKAMONY ) # % / JUDICIAL MEMBER % / ACCOUNTANT MEMBER # /CHENNAI, ( /DATED 6 TH OCTOBER, 2016 SOMU *+ ,+ /COPY TO: 1. APPELLANT 2. RESPONDENT 3. - () /CIT(A) 4. - /CIT 5. + 1 /DR 6. /GF