DCIT, Coimbatore V. Rangamma Steels & Malleables, Coimbatore

ITA 2308/CHNY/2015

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 2658 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 22-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHRI A V SREEKANTH IRS

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI , . , ! ' BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER ./ I.T.A. NOS. 2308 & 2309/MDS/2015 ! # $# / ASSESSMENT YEAR : 2011-12 & 2012-2013 THE DEPUTY COMMISSIONER OF INCOME TAX, NON CORPORATE CIRCLE -1, COIMBATORE VS. M/S. RANGAMMA STEELS & MALLEABLES, 603, C-BLOCK, AVINASHI ROAD, COIMBATORE 641 018. [PAN AADFR 3050J ] APPELLANT %& ' ( / APPELLANT BY : SHRI. SHRI. A.V. SREEKANTH, IRS, JCIT. )*%& ' ( /RESPONDENT BY : NONE ' + / DATE OF HEARING : 18-02-2016 ,-$ ' + / DATE OF PRONOUNCEMENT : 26-02-2016 / O R D E R PER G. PAVAN KUMAR, JUDICIAL MEMBER : THE APPEALS FILED BY THE REVENUE ARE AGAINST DIFF ERENT ORDERS OF COMMISSIONER OF INCOME TAX (APPEALS)-2, COIMBATORE DATED 14.09.2015 FOR THE ASSESSMENT YEARS 2011-12 AND 2 012-2013 PASSED ITA NOS.2308 & 2309/MDS/2015 :- 2 -: U/S.143(3) AND 250 OF THE INCOME TAX ACT, 1961 (HER EIN AFTER REFERRED TO AS THE ACT). SINCE THE ISSUE IN THESE APPEALS ARE COMMON IN NATURE, THESE APPEALS ARE CLUBBED, HEARD TOGETHER, AND DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. 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) IN RESPECT OF WINDMILLS. WE CONSIDER THE FACTS AS NARRATED IN ITA NO.2308/MDS/ 2015 FOR ADJUDICATION. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE C OMPANY FILED RETURN OF INCOME FOR THE ASSESSMENT YEAR 201 1-12 ON 28.09.2011 DISCLOSING TOTAL INCOME OF <17,73,150/-. THE CASE WAS SELECTED FOR SCRUTINY AND THE ASSESSMENT WAS COMPLETED BY DISALL OWING <1,50,55,920/-UNDER SECTION 80IA OF THE ACT BY NOTI ONALLY 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). ITA NOS.2308 & 2309/MDS/2015 :- 3 -: 4. ON APPEAL, THE COMMISSIONER OF INCOME TAX (APPEAL S) 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 COMM ISSIONER OF INCOME TAX (APPEALS) ORDER, THE REVENUE ASSAILED A N APPEAL BEFORE TRIBUNAL. 5. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE AND HEARD THE SUBMISSIONS OF LD. DEPARTMEN TAL REPRESENTATIVE. THE ONLY CONTENTION OF THE DEPARTME NT BEFORE THE TRIBUNAL THAT THE REVENUE HAS NOT ACCEPTED THE JUD GMENT 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 JUDGMENT OF MADRAS HIGH COURT IN VELAYUDHASWAMY SPINNING MILLS (P) ITA NOS.2308 & 2309/MDS/2015 :- 4 -: LTD (SUPRA). THEREFORE, THIS TRIBUNAL DO NOT FIND ANY INFIRMIT Y IN THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS). THE APPEAL OF THE REVENUE IN ITA NO.2308/MDS/2015 IS DISMISSED. 6. CONSEQUENTLY, THE APPEAL OF THE REVENUE IN ITA NO.2309/MDS/2015 IS ALSO DISMISSED. 7. IN THE RESULT, THE APPEALS OF THE REVENUE ARE DISM ISSED. ORDER PRONOUNCED ON FRIDAY, THE 26TH DAY OF F EBRUARY 2016, AT CHENNAI. SD/- SD/- ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER ( . ) (G. PAVAN KUMAR) /JUDICIAL MEMBER / CHENNAI 2 / DATED:26.02.2016 KV 3 ' )!+45 65$+ / COPY TO: 1 . %& / APPELLANT 3. 7+ () / CIT(A) 5. 589 )!+! / DR 2. )*%& / RESPONDENT 4. 7+ / CIT 6. 9:# ; / GF