DCIT, Coimbatore V. M/s. Surya Spinning Mills, Pollachi

ITA 2126/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 8021 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 14-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N MADHAVAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , . !' , # $ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO. 2126/MDS/2016 % &% /ASSESSMENT YEAR : 2012-13 THE DEPUTY COMMISSIONER OF INCOME TAX, NON CORPORATE CIRCLE- 4, COIMBATORE. V. M/S. SURYA SPINNING MILLS, 49/1, UNJAVELAMPATTI, UDUMALPET ROAD, POLLACHI. PAN : AATFS 7756 A ( '( /APPELLANT) ( )*'( /RESPONDENT) ./ ITA NO. 2128/MDS/2016 % &% /ASSESSMENT YEAR : 2012-13 INCOME TAX OFFICER, WARD 2(3), 121, SIXTY FEET ROAD, TIRUPUR 641 602. V. M/S.INDOFLEX SCREEN PRINT SUPPLIES, 8, PUTHUTHOTTAM, 5 TH STREET, SHERIFF COLONY, TIRUPUR 641 604. PAN : AAAFI 7613 R ( '( /APPELLANT) ( )*'( /RESPONDENT) '( + , /APPELLANT BY : SHRI N.MADHAVAN, JCIT )*'(+, /RESPONDENT BY : NONE - +.# /DATE OF HEARING : 06.10.2016 /!& +.# /DATE OF PRONOUNCEMENT : 25.11.2016 2 I.T.A. NOS.2126 & 2128/MDS/2016 /O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: BOTH THE APPEALS OF THE REVENUE ARE DIRECTED AGAI NST THE RESPECTIVE ORDER OF CIT(A) IN RESPECT OF TWO INDEPENDENT ASSES SEES. SINCE COMMON ISSUE ARISES FOR CONSIDERATION IN BOTH THE APPEALS, WE HEARD THE SAME TOGETHER AND DISPOSING OF THE SAME BY THIS COMMON O RDER. 2. NO ONE APPEARED FOR THE ASSESSEE IN RESPECT OF S ERVICE OF THE NOTICE BY R.P.A.D. THEREFORE, WE HEARD THE DEPARTME NT REPRESENTATIVE AND PROCEEDED TO DISPOSE OF THE APPEAL ON MERIT. SHRI N.MADHAVAN, THE LEARNED DEPARTMENT REPRESENTATIVE SUBMITTED THAT TH E ONLY ISSUE ARISES FOR CONSIDERATION IS DISALLOWANCE OF DEDUCTION CLAIMED BY THE ASSESSEE UNDER SECTION 80IA. THE CIT(A) ALLOWED THE CLAIM OF THE A SSESSEE ON THE BASIS OF THE JUDGMENT OF THE MADRAS HIGH COURT IN CIT VS. VELAYU THASAMY SPINNING MILLS (P) LTD. REPORTED IN 231 ITR 368. ACCORDING TO THE LEAR NED DEPARTMENT REPRESENTATIVE, THE REVENUE HAS ALREADY FILED THE S PECIAL LEAVE PETITION BEFORE THE APEX COURT. THEREFORE, THE CIT(A) IS NOT JUSTIF IED IN ALLOWING THE CLAIM OF THE ASSESSEE. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITHER SIDE AND PERUSED THE MATERIAL ON RECORD. THE CLAIM OF 80IA I S ALLOWED BY CIT(A) ON THE BASIS OF THE JUDGMENT OF THE MADRAS HIGH COU RT IN VELAYUTHASAMY 3 I.T.A. NOS.2126 & 2128/MDS/2016 SPINNING MILLS (P) LTD. (SUPRA). THE ONLY OBJECTION OF THE DEPARTMENT REPRESENTATIVE IS THAT A SPECIAL LEAVE PETITION WAS FILED BEFORE THE APEX COURT AGAINST THE MADRAS HIGH COURT IN VELAYUTHASAMY SPINNING MILLS (P) LTD. (SUPRA). THE CBDT IN THE LATEST CIRCULAR INSTRUCTED ITS OFFICERS TO ACCEPT THE JUDGMENT OF THE MADRAS HIGH COURT IN VELAYUTHASAMY SPINNING MILLS (P) LTD. (SUPRA) AND NOT TO FILE ANY FURTHER APPEAL AND ALSO INSTRUCTED ITS OFFICERS TO WITHDRAW ITS APPEALS PENDING AT VARIOUS LEVELS. INS PITE OF THIS CIRCULAR, THE DEPARTMENT HAS FILED THE APPEAL. SINCE CBDT CIRCULA R IS BINDING ON ALL THE AUTHORITIES BELOW, THIS APPEAL SHOULD NOT HAVE BEEN FILED BEFORE THIS TRIBUNAL. EVEN OTHERWISE, THE JUDGMENT OF MADRAS HIGH COURT I S BINDING ON BOTH THE AUTHORITIES BELOW, THE CIT(A) HAS RIGHTLY FOLLOWED THE JUDGMENT OF THE MADRAS HIGH COURT IN VELAYUTHASAMY SPINNING MILLS (P) LTD. (SUPRA). 4. IN THE RESULT, BOTH THE APPEALS FILED BY THE DEP ARTMENT STANDS DISMISSED. ORDER PRONOUNCED ON 25 TH NOVEMBER, 2016 AT CHENNAI. SD/- SD/- ( . !' ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) # /ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 0 /DATED, THE 25 TH NOVEMBER, 2016. SP. 4 I.T.A. NOS.2126 & 2128/MDS/2016 + ).12 32&. /COPY TO: 1. '( /APPELLANT 2. )*'( /RESPONDENT 3. - 4. ( )/CIT(A) 4. - 4. /CIT, 5. 25 ). /DR 6. 6% 7 /GF.