DCIT, Madurai V. M/s. The Metal Powder Company Ltd., Thirumangalam

ITA 2430/CHNY/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7737 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 17-02-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 22-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: S SRIDHAR

Judgement Text

, , [ : ] IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI [ CAMP: MADURAI ) . . . , ! ' # $% .'('), + ' , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER #./ ITA NO.2430/MDS/2016 ! ) .) / ASSESSMENT YEAR : 2012-13 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 2, MADURAI. V. M/S THE METAL POWDER COMPANY LTD., SURVEY NO.89, MARAVANKULAM, FACTORY PREMISES, THIRUMANGALAM 625 706. PAN : AAACT 4262 E (01/ APPELLANT) (2301/ RESPONDENT) 01 4 5 / APPELLANT BY : SHRI SHIVA SRINIVAS, JCIT 2301 4 5 / RESPONDENT BY : SHRI S. SRIDHAR, ADVOCATE 4 6+ / DATE OF HEARING : 16.02.2017 78. 4 6+ / DATE OF PRONOUNCEMENT : 16.02.2017 / 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 26.04.2016 AND PERTAINS TO ASSESSMENT YEAR 2012-13. 2 I.T.A. NO.2430/MDS/16 2. WE HAVE HEARD SHRI SHIVA SRINIVAS, THE LD. DEPAR TMENTAL REPRESENTATIVE AND SHRI S. SRIDHAR, THE LD.COUNSEL FOR THE ASSESSEE. ADMITTEDLY, THE ISSUE ARISES FOR CONSIDE RATION IS WITH REGARD TO SETTING OFF OF LOSSES OF THE EARLIER YEAR FOR THE PURPOSE OF GRANTING DEDUCTION UNDER SECTION 80-IA OF THE INCOM E-TAX ACT, 1961 (IN SHORT 'THE ACT'). THIS ISSUE WAS CONSIDERED BY THE MADRAS HIGH COURT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD. V. ACIT (340 ITR 477). THE MADRAS HIGH COURT FOUND THAT LOSSES OF T HE EARLIER YEAR NEED NOT BE SET OFF WHILE GRANTING DEDUCTION UNDER SECTION 80-IA OF THE ACT. THE CASE OF THE REVENUE IS THAT A SPECIAL LEAVE PETITION WAS PENDING BEFORE THE APEX COURT AGAINST THE JUDGM ENT OF MADRAS HIGH COURT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD . (SUPRA). IN FACT, THE CBDT VIDE ITS RECENT CIRCULAR ACCEPTED TH E JUDGMENT OF MADRAS HIGH COURT AND INSTRUCTED ALL ITS OFFICERS T O WITHDRAW THE APPEALS PENDING IN VARIOUS FORUMS. THE APEX COURT HAS DISMISSED THE SLP FILED BY THE REVENUE. IN THOSE CIRCUMSTANC ES, THIS TRIBUNAL DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LOWER AUTHORITY AND ACCORDINGLY THE SAME IS CONFIRMED. 3. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. 3 I.T.A. NO.2430/MDS/16 ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH FEBRUARY, 2017 AT MADURAI. SD/- SD/- ($% .'(') ) ( . . . ) (ABRAHAM P. GEORGE) (N.R.S. GANESAN) + '/ ACCOUNTANT MEMBER ! ' /JUDICIAL MEMBER /CHENNAI, :# /DATED, THE 16 TH FEBRUARY, 2017. KRI. 4 2!6 ;.6 /COPY TO: 1. 01 /APPELLANT 2. 2301 /RESPONDENT 3. <6 () /CIT(A)-1, MADURAI 4. PRINCIPAL CIT-1, MADURAI 5. = 2!6! /DR 6. >) ? /GF.