ACIT, CHENNAI V. Tamilnadu Newsprint & Papers Limited, CHENNAI

ITA 2229/CHNY/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 8182 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 07-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K PARASHIVAIAH IRSCIT

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI , . , ! ' BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER ./ I.T.A. NO.2229/MDS/2015 ! # $# / ASSESSMENT YEAR : 2011-12 THE ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 3(1) CHENNAI 600 034 VS. M/S. TAMILNADU NEWSPRINT & PAPERS LIMITED, NO.67, TNPL BUILDING, MOUNT ROAD, GUINDY, CHENNAI 600 032. [PAN AAACT 2935J ] ( / APPELLANT) ( /RESPONDENT) %& ' ( / APPELLANT BY : SHRI. K. PARASHIVAIAH, IRS,CIT. )*%& ' ( /RESPONDENT BY : SHRI. SAROJ KUMAR PARIDA, ADV ' + / DATE OF HEARING : 19-01-2016 ,-$ ' + / DATE OF PRONOUNCEMENT : 22-01-2016 / O R D E R PER G. PAVAN KUMAR, JUDICIAL MEMBER : THE APPEAL FILED BY THE DEPARTMENT AGAINST THE OR DER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-11, CHENNAI IN ITA NO.224/2014-15/CIT(A)-11, DT.25.09.2015 FOR THE ASS ESSMENT YEAR 2011-2012 PASSED U/S.143(3) AND 250 OF THE INCOME T AX ACT, 1961. ITA NO.2229/MDS/2015 :- 2 -: 2. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATERI AL ON RECORD. THE ONLY ISSUE ARISES FOR CONSIDERATION IS WITH REGARD TO DEDUCTION CLAIMED BY THE ASSESSEE UNDER SECTION 80- IA OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). THE ASSESSE E CONSIDERED FIRST YEAR OF CLAIM OF DEDUCTION U/S.80IA OF THE ACT AS INITIA L ASSESSMENT U/SEC80IA(5) OF THE ACT AND NOT THE COMMENCEMENT OF OPERATION AND THEREBY THE UNABSORBED DEPRECATION AND CARRIED FORW ARD OF THE LOSS OF EARLIER YEARS WHICH HAD ALREADY BEEN SET OFF AGAIN ST THE OTHER INCOME, COULD NOT BE NOTIONALLY CARRY FORWARD AND TAKEN INT O CONSIDERATION FOR THE PURPOSE OF COMPUTATION OF DEDUCTION U/S.80IA. T HE ASSESSING OFFICER REJECTED THE CLAIM OF THE ASSESSEES ON THE GROUND THAT THE DEPARTMENT HAS FILED A SPECIAL LEAVE PETITION AGAIN ST 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 HIGH COURT ALLO WED THE CLAIM OF THE ASSESSEES. 3. 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 ITA NO.2229/MDS/2015 :- 3 -: 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 ASSESSEES BY F OLLOWING THE BINDING 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). 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED ON FRIDAY THE 22ND DAY OF JANUAR Y 2016, AT CHENNAI. SD/- SD/- ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER ( . ) (G. PAVAN KUMAR) /JUDICIAL MEMBER / CHENNAI . / DATED:22.1.2016. KV / ' )!+12 32$+ / COPY TO: 1 . %& / APPELLANT 3. 4+ () / CIT(A) 5. 278 )!+! / DR 2. )*%& / RESPONDENT 4. 4+ / CIT 6. 89# : / GF