DCIT, Tiruppur V. R.S.Yarns and Power P Ltd., Tiruppur

ITA 2138/CHNY/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96509 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 11-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNAN IRS

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI , ! , ' #$ BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER & SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ./ I.T.A.NO. 2138/MDS/2015 / ASSESSMENT YEAR : 2011-12 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -1, TIRUPUR VS. M/S. R.S. YARNS AND POWER P. LTD, 40(1) S.V. COLONY EAST, 9 TH STREET, P.N. ROAD, TIRUPUR 641 602 [PAN AADCR 5203N ] ( %& / APPELLANT) ( !'%& /RESPONDENT) / APPELLANT BY : SHRI. P. RADHAKRISHNAN, IRS, JCIT. /RESPONDENT BY : NONE / DATE OF HEARING : 16-12-2015 / DATE OF PRONOUNCEMENT : 16-12-2015 ( / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER : THIS APPEAL BY THE DEPARTMENT IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-3, COI MBATORE FOR THE ASSESSMENT YEAR 2011-2012. ITA NO. 2138/MDS/2015 :- 2 -: 2. THE ONLY GROUND RAISED BY THE REVENUE IN THIS APPEA L IS WITH REGARD TO REDUCTION OF ADDITION MADE ON ACCOUNT OF DISALLOWANCE OF @21,46,473/- MADE U/S.80IA OF THE INCOME TAX ACT, 1961. 3. THE BRIEF FACTS OF THE CASE IS THAT THE ASSESSEE CO MPANY FILED RETURN OF INCOME FOR THE ASSESSMENT YEAR 2011-12 O N 29.09.2011 DECLARING AN INCOME OF @15,46,300/-. THE CASE WAS S ELECTED FOR SCRUTINY AND THE ASSESSMENT WAS COMPLETED ON 25.03. 3014 DISALLOWING @21,46,473/- UNDER SECTION 80IA OF THE ACT BY NOTIO NALLY BRINGING IN AND SETTING OFF THE BROUGHT FORWARD LOSS FOR DETERM INING THE PROFITS QUALIFYING FOR DEDUCTION U/S.80IA FROM THE INITIAL ASSESSMENT YEAR BEING THE YEAR RELEVANT TO THE FINANCIAL YEAR IN WH ICH OPERATIONS RELATING TO THE WINDMILL INFRASTRUCTURE COMMENCED. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE COMMISSIONE R OF INCOME TAX (APPEALS). 4. ON APPEAL, THE COMMISSIONER OF INCOME TAX (APPEALS ) OBSERVED THAT THE ISSUE IS COVERED BY THE JURISDICT IONAL HIGH COURT ORDER IN THE CASE OF CIT VS. VELAYUTHASAMY SPINNING MILLS 231 CTR 368 AND ALLOWED THE CLAIM OF THE ASSESSEE. AGAINST THIS , THE REVENUE IS IN APPEAL BEFORE US. ITA NO. 2138/MDS/2015 :- 3 -: 5. NONE APPEARED ON BEHALF OF THE ASSESSEE, THUS WE DI SPOSE THE CASE ON MERITS AFTER HEARING THE DEPARTMENTAL R EPRESENTATIVE. THE ONLY ISSUE ARISES FOR CONSIDERATION IS WITH REGARD TO DEDUCTION CLAIMED BY THE ASSESSEE UNDER SECTION 80-IA OF THE ACT IN RESPECT OF WINDMILLS. THE ASSESSING OFFICER REJECTED THE CLAIM OF THE ASS ESSEE ON THE GROUND THAT THE DEPARTMENT HAS FILED A SPECIAL LEAVE PETIT ION AGAINST THE JUDGMENT OF MADRAS HIGH COURT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD VS. ACIT 231 CTR 368. HOWEVER, THE COMMISSIONER OF INCOME TAX (APPEALS) BY FOLLOWING THE JUDGMENT OF MADRAS H IGH COURT ALLOWED THE CLAIM OF THE ASSESSEE. 6. NOW THE ONLY CONTENTION OF THE DEPARTMENT BEFORE TH IS TRIBUNAL IS THAT THE REVENUE HAS NOT ACCEPTED THE J UDGMENT OF MADRAS HIGH COURT AND AN APPEAL HAS ALREADY BEEN FILED ALO NG WITH SPECIAL LEAVE PETITION AND THE SAME IS PENDING BEFORE THE A PEX COURT. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT MERE PEN DENCY OF SPECIAL LEAVE PETITION BEFORE THE APEX COURT CANNOT BE A RE ASON TO TAKE A DIFFERENT VIEW. THE JUDGMENT OF MADRAS HIGH COURT IS BINDING ON ALL THE AUTHORITIES IN THE STATE OF TAMIL NADU AND UNIO N TERRITORY OF PONDICHERRY. THEREFORE, THE COMMISSIONER OF INCOME TAX (APPEALS) HAS RIGHTLY ALLOWED THE CLAIM OF THE ASSESSEE BY FO LLOWING THE BINDING ITA NO. 2138/MDS/2015 :- 4 -: JUDGMENT OF MADRAS HIGH COURT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD (SUPRA). THEREFORE, THIS TRIBUNAL DO NOT FIND ANY INFIRMIT Y IN THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS). 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON WEDNESDAY, THE 16TH DAY OF DECEMBER, 2015, AT CHENNAI. SD/- SD/- ( ! ! ' ! (CHALLA NAGENDRA PRASAD) ' #! JUDICIAL MEMBER ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER $% / CHENNAI &' / DATED:16.12.2015 KV '(!! )*!+* / COPY TO: ! 1 . / APPELLANT 3. ! ,!-' / CIT(A) 5. *./! 0 / DR 2. / RESPONDENT 4. ! , / CIT 6. /1!2 / GF