DCIT, Madurai V. VTM Limited, Virudhunagar

ITA 2353/CHNY/2015

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3955 (ITAT-CHENNAI)
• Duration Of Justice: 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-11-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 17-10-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 31-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUPRIYO PAL
• Assessee Lawyers: R SRINIVASAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , !.. # $%, ' () BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER ./ ITA NO.2353/MDS/2015 + ,+ / ASSESSMENT YEAR : 2011-12 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 2, MADURAI. V. M/S VTM LIMITED, SULAKARAI, VIRUDHUNAGAR. PAN : AAACV 3775 E (.// APPELLANT) (01.// RESPONDENT) ./ 2 3 / APPELLANT BY : SHRI SUPRIYO PAL, JCIT 01./ 2 3 / RESPONDENT BY : SHRI R. SRINIVASAN, ADVOCATE # 2 4' / DATE OF HEARING : 17.10.2016 56, 2 4' / DATE OF PRONOUNCEMENT : 23.11.2016 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -1, MADURA I, DATED 16.10.2015 AND PERTAINS TO ASSESSMENT YEAR 2011-12. 2. WE HAVE HEARD SHRI SUPRIYO PAL, THE LD. DEPARTME NTAL REPRESENTATIVE AND SHRI R. SRINIVASAN, THE LD.COUNS EL FOR THE 2 I.T.A. NO.2353/MDS/15 ASSESSEE. THE ONLY ISSUE ARISES FOR CONSIDERATION IS DEDUCTION CLAIMED BY THE ASSESSEE UNDER SECTION 80-IA OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'). THE ASSESSING OFFICER D ISALLOWED THE CLAIM OF THE ASSESSEE UNDER SECTION 80-IA OF THE ACT IN R ESPECT OF WINDMILL ON THE GROUND THAT THE ASSESSEE EXCLUDED LOSS FROM THE ELIGIBLE BUSINESS. THE ASSESSEE HAS ALSO USED THE ELECTRICI TY GENERATED BY WINDMILL FOR CAPTIVE CONSUMPTION. ON APPEAL BY THE ASSESSEE, THE CIT(APPEALS) ALLOWED THE CLAIM OF THE ASSESSEE BY P LACING RELIANCE ON THE JUDGMENT OF MADRAS HIGH COURT IN VELAYUDHASW AMY SPINNING MILLS (P) LTD. V. ACIT (340 ITR 477). 3. WE HAVE CAREFULLY GONE THROUGH THE ORDERS OF BOT H THE AUTHORITIES BELOW AND THE JUDGMENT OF MADRAS HIGH C OURT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD. (SUPRA). TH IS TRIBUNAL IS OF THE CONSIDERED OPINION THAT EVEN THOUGH THE ELECTRI CITY IS USED FOR CAPTIVE CONSUMPTION, THE ASSESSEE IS ELIGIBLE FOR D EDUCTION UNDER SECTION 80-IA OF THE ACT. MOREOVER, THE LOSS SUFFE RED CANNOT BE EXCLUDED IN VIEW OF THE JUDGMENT OF MADRAS HIGH COU RT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD. (SUPRA). TH EREFORE, THIS TRIBUNAL DO NOT FIND ANY REASON TO INTERFERE WITH T HE ORDER OF THE LOWER AUTHORITY AND ACCORDINGLY THE SAME IS CONFIRM ED. 3 I.T.A. NO.2353/MDS/15 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED ON 23 RD NOVEMBER, 2016 AT CHENNAI. SD/- SD/- ( ! . . # $% ) ( . . . ) (D.S. SUNDER SINGH) (N.R.S. GANESAN) ' / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 8 /DATED, THE 23 RD NOVEMBER, 2016. KRI. 2 04$9 :9,4 /COPY TO: 1. ./ /APPELLANT 2. 01./ /RESPONDENT 3. # ;4 () /CIT(A)-1, MADURAI. 4. PRINCIPAL CIT-1, MADURAI 5. 9< 04 /DR 6. !+ = /GF.