DCIT, CHENNAI V. Batlibio Enexco Pvt. Ltd., CHENNAI

ITA 24/CHNY/2016

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 2692 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 05-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A B KOLI IRS
• Assessee Lawyers: R KUMAR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI , . ! ' , #'$ BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER ./ I.T.A. NO. 24/MDS/2016 # % &% / ASSESSMENT YEAR : 2011-2012. THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 1(2) CHENNAI 600 034. VS. M/S. BATLIBIO ENEXCO PVT. LTD, AP-73, NEW NO.2, AF BLOCK, II STREET, 11 TH MAIN ROAD, ANNA NAGAR, CHENNAI 600 040. [PAN AAACB 6055H] ( / APPELLANT) ( /RESPONDENT) '( ) * / APPELLANT BY : SHRI. A.B. KOLI, IRS, JCIT. +,'( ) * /RESPONDENT BY : SHRI. R. KUMAR, ADVOCATE ! ) - / DATE OF HEARING : 10-03-2016 ./& ) - / DATE OF PRONOUNCEMENT : 16-03-2016 / O R D E R PER G. PAVAN KUMAR, JUDICIAL MEMBER : THE APPEAL FILED BY THE DEPARTMENT IS DIRECTED A GAINST ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-1 , CHENNAI IN ITA ITA NO.24/MDS/2016. :- 2 -: NO. 133/14-15, DATED 29.09.2015 FOR THE ASSESSMENT YEAR 2011-2012 PASSED U/S.143(3) AND 250 OF THE INCOME TAX ACT, 1 961 (HEREIN AFTER REFERRED TO AS THE ACT). 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS WITH RE GARD TO DEDUCTION CLAIMED BY THE ASSESSEE UNDER SECTION 80- IA OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) IN RESPECT OF WINDMILLS. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE C OMPANY FILED RETURN OF INCOME ELECTRONICALLY FOR THE ASS ESSMENT YEAR 2011-12 ON 24.09.2011 DISCLOSING TOTAL INCOME OF =1,27,75, 265/-. THE CASE WAS SELECTED FOR SCRUTINY AND THE ASSESSMENT WAS CO MPLETED BY DISALLOWING =30,20,491/- UNDER SECTION 80IA OF THE ACT BY NOTIONALLY BRINGING IN AND SETTING OFF THE BROUGHT FORWARD LOS S FOR DETERMINING THE PROFITS QUALIFYING FOR DEDUCTION U/S.80IA FROM THE INITIAL ASSESSMENT YEAR BEING THE YEAR RELEVANT TO THE FINANCIAL YEAR IN WHICH OPERATIONS RELATING TO THE WINDMILL INFRASTRUCTURE COMMENCED . AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE COMMISSIONE R OF INCOME TAX (APPEALS) .. ITA NO.24/MDS/2016. :- 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. WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MAT ERIAL ON RECORD. THE ONLY CONTENTION OF THE DEPARTMENT BEFOR E THE TRIBUNAL THAT THE REVENUE HAS NOT ACCEPTED THE JUDGMENT OF M ADRAS HIGH COURT AND AN APPEAL HAS ALREADY BEEN FILED ALONG WITH SPE CIAL LEAVE PETITION AND THE SAME IS PENDING BEFORE THE APEX COURT. TH IS TRIBUNAL IS OF THE CONSIDERED OPINION THAT MERE PENDENCY OF SPECIA L LEAVE PETITION BEFORE THE APEX COURT CANNOT BE A REASON TO TAKE A DIFFERENT VIEW. THE JUDGMENT OF MADRAS HIGH COURT IS BINDING ON ALL THE AUTHORITIES IN THE STATE OF TAMIL NADU AND UNION TERRITORY OF POND ICHERRY. THEREFORE, THE COMMISSIONER OF INCOME TAX (APPEALS) HAS RIGHTLY ALLOWED THE CLAIM OF THE ASSESSEE BY FOLLOWING THE BINDING JUDGMENT OF MADRAS HIGH COURT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD (SUPRA). THEREFORE, THIS TRIBUNAL DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS). THE APPEAL OF THE REVENUE IS ITA NO.24/MDS/2016. :- 4 -: DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE DEPARTMENT IN IT A NO.24/MDS/2016 IS DISMISSED. ORDER PRONOUNCED ON WEDNESDAY, THE 16 TH DAY OF MARCH, 2016, AT CHENNAI. SD/- SD/- ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER ( . ! ' ) (G. PAVAN KUMAR) /JUDICIAL MEMBER / CHENNAI 0 / DATED:16.03.2016 KV 1 ) +#-23 43&- / COPY TO: 1 . '( / APPELLANT 3. ! 5- () / CIT(A) 5. 3 89 +#-# / DR 2. +,'( / RESPONDENT 4. ! 5- / CIT 6. 9:% ; / GF