ITO, Coimbatore V. M/s. Sivasubramania Textiles, Coimbatore

ITA 2137/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 8019 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 15-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Keywords: Business income; Depreciation

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , . . ! ' , # $% BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER ./ ITA NO.2136/MDS/2016 & '& /ASSESSMENT YEAR : 2012-13 THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE -2, 121, SIXTY FEET ROAD, TIRUPUR 641 602. V. M/S. PRABATH MILLS, ARUL INDUSTRIAL ESTATE, ARULPURAM, PALLADAM ROAD, TIRUPUR 641 605. PAN: AADFP 7442 E ( () /APPELLANT) ( *+() /RESPONDENT) ./ ITA NO.2137/MDS/2016 & '& /ASSESSMENT YEAR : 2013-14 THE INCOME-TAX OFFICER, NON- CORPORATE WARD -4(1), COIMBATORE. V. M/S.SIVASUBRAMANIA TEXTILES, NO.2/1, CHINNIYAMPALAYAM, AVINASHI ROAD, COIMBATORE 641 062. PAN: AAKFS 4941 G ( () /APPELLANT) ( *+() /RESPONDENT) () , - /APPELLANT BY : SHRI A.V.SREEKANTH, JCIT *+(),- /RESPONDENT BY : NONE ,.# /DATE OF HEARING : 19.10.2016 /0' ,.# /DATE OF PRONOUNCEMENT : 25.11.2016 2 I.T.A. NOS.2136 & 2137/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) DATED 08.04.2016 FOR THE ASSESSMENT YEARS 2012-13 AND 2013- 14 RESPECTIVELY. SINCE COMMON ISSUE ARISES FOR CONS IDERATION IN BOTH THE APPEALS, WE HEARD THE SAME TOGETHER AND DISPOSING O F THE SAME BY THIS COMMON ORDER. 2. NO ONE APPEARED FOR THE ASSESSEE INSPITE OF SERV ICE OF NOTICE BY R.P.A.D. THEREFORE, WE HEARD THE LEARNED REPRESENTA TIVE FOR THE DEPARTMENT AND PROCEEDED TO DISPOSE OFF THE APPEAL ON MERIT. T HE ONLY ISSUE ARISES FOR CONSIDERATION IS DEDUCTION CLAIMED BY THE ASSESSEE UNDER SECTION 80IA OF THE ACT. IN BOTH THE APPEALS, THE ASSESSING OFFICER DIS ALLOWED THE CLAIM OF THE ASSESSEE ON THE GROUND THAT THE LOSSES AND THE UNAB SORBED DEPRECIATION ALLOWANCES CANNOT BE SET OFF AGAINST OTHER BUSINESS INCOME OF THE ASSESSEE. REFERRING TO THE JUDGMENT OF THE MADRAS HIGH COURT IN VELAYUDHASWAMY SPG.MILLS LTD., THE ASSESSING OFFICER FOUND THAT TH E REVENUE HAS ALREADY FILED THE SLP BEFORE THE APEX COURT. THEREFORE, IT WAS NOT FO LLOWED. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE INITIAL ASSESSMENT YEAR MEANS, THE YEAR IN WHICH THE ASSESSEE BEGINS TO CLAIM DEDUCTION UNDER SECTION 80IA OF THE ACT. THE MADRAS HIGH COURT ALLOWED THE CLAIM OF THE ASSE SSEE BY INTERPRETING SECTION 80IA (5) OF THE ACT REFUSED TO FOLLOW THE S AME ON THE GROUND THAT THE 3 I.T.A. NOS.2136 & 2137/MDS/2016 REVENUE HAS ALREADY FILED THE SLP BEFORE THE HIGH C OURT. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT MERE PENDENCY OF SLP BEFORE THE APEX COURT CANNOT BE A REASON FOR NOT FOLLOWING THE JUDGMENT OF THE M ADRAS HIGH COURT. MOREOVER, T HE CBDT INSTRUCTED ITS OFFICERS TO ACCEPT THE JUDGM ENT OF THE MADRAS HIGH COURT AND WITHDRAW ALL THE PENDING APPE ALS. INSPITE OF THIS INSTRUCTION, THE REVENUE HAS FILED THE PRESENT APPE ALS BEFORE THIS TRIBUNAL. THEREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINI ON THAT THE CIT(A) RIGHTLY ALLOWED THE CLAIM OF THE ASSESSEE. THIS TRIBUNAL DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LOWER AUTHORITY AND ACCORDINGLY, THE SAME IS CONFIRMED. 3. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A RE DISMISSED. ORDER PRONOUNCED ON 25 TH NOVEMBER, 2016 AT CHENNAI. SD/- SD/- ( . . ! ' ) ( . . . ) (D.S. SUNDER SINGH) (N.R.S. GANESAN) # /ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 1 /DATED, THE 25 TH NOVEMBER, 2016. SP. 4 I.T.A. NOS.2136 & 2137/MDS/2016 , *.!2 32'. /COPY TO: 1. () /APPELLANT 2. *+() /RESPONDENT 3. 4. ( )/CIT(A) 4. 4. /CIT, 5. 25 *. /DR 6. & 6 /GF.