DCIT, Tiruppur V. M/s. V.M.D. Mills Pvt. Ltd., Tiruppur

ITA 2453/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 8044 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-11-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 21-11-2016
• Assessment Year: 2012-2013
• Appeal Filed On: 23-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUPRIYO PAL
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , B B ENCH, CHENNAI . , ' # . $ , & ' BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY, JUDICI AL MEMBER ./ I.T.A.NO.2453/MDS/2016 ( / ASSESSMENT YEAR: 2012-13) THE DEPUTY COMMISSIONER OF INCOME TAX , CIRCLE-2, 121, 60 FEET ROAD, TIRUPUR-641 602. VS M/S. V M D MILLS P.LTD. 427-B, POLLACHI MAIN ROAD, KOMANAICKENPALAYAM, PALLADAM ROAD, TIRUPUR-642 658. PAN:AAACV6929J ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. SUPRIYO PAL, JCIT /RESPONDENT BY : NONE /DATE OF HEARING : 21 ST NOVEMBER, 2016 /DATE OF PRONOUNCEMENT : 24 TH NOVEMBER, 2016 / O R D E R PER A. MOHAN ALANKAMONY, AM:- THIS APPEAL IS FILED BY THE REVENUE AGGRIEVED BY TH E ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS)- 3, COIMBATORE DATED 26.05.2016 IN ITA NO.127/15-16 PASSED UNDER SECTION 143(3) R.W.S. 250(6) OF THE ACT. 2. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE RESPONDENT/ASSESSEE, THOUGH NOTICE OF THIS TRIBUNAL SENT BY REGISTERED POST WITH ACKNOWLEDGEMENT CARD WAS SERVE D ON THE ASSESSEE. SINCE THE ISSUE IS COVERED BY THE HON BLE JURISDICTIONAL HIGH COURT, WE PROCEED TO DISPOSE OF F THE 2 ITA NO.2453 /MDS/2016 APPEAL, AFTER HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE AND PERUSING THE MATERIALS ON RECORD . 3. THOUGH THE REVENUE HAS RAISED SEVERAL GROUNDS IN ITS APPEAL, THE CRUX OF THE ISSUE IS AS FOLLOWS:- THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN ALLOWING THE CLAIM OF DEDUCTION AMOUNT ING TO ` 59,12,450/- UNDER SECTION 80IA OF THE ACT BY FOLLOWING THE DECISION OF THE HONBLE JURISDICTIONA L HIGH COURT IN THE CASE OF SRI VELAYUTHASAMY SPINNING MIL LS P.LTD. REPORTED IN 236 CTR 368. 4. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A COMPANY ENGAGED IN THE BUSINESS OF MANUFACTURE AND SALE OF COTTON YARN, CLOTH ETC., AND ALSO ENGAGED IN THE BU SINESS OF GENERATION OF ELECTRICITY FROM WIND TURBINE GENERAT ORS FILED ITS RETURN OF INCOME ON 17.09.2012 FOR THE ASSESSMENT Y EAR 2012-13 DECLARING NIL INCOME AFTER CLAIMING DEDUCTI ON OF ` 59,12,450/- UNDER SECTION 80IA OF THE ACT. SUBSEQ UENTLY, THE ASSESSMENT WAS COMPLETED BY THE LEARNED ASSESSI NG OFFICER UNDER SECTION 143(3) OF THE ACT ON 30.01.20 15 WHEREIN HE HAD DISALLOWED ` 59,12,450/- BEING THE DEDUCTION CLAIMED UNDER SECTION 80IA OF THE ACT TOWARDS INCOM E 3 ITA NO.2453 /MDS/2016 GENERATED FROM THE WIND TURBINE GENERATOR. THE LEA RNED ASSESSING OFFICER WAS OF THE VIEW THAT THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT HAS NOT BECOME FI NAL AS THE DEPARTMENT HAD FILED SLP BEFORE THE HONBLE SUPREME COURT WHICH IS PENDING FOR DECISION. THEREFORE HE DISALLO WED THE CLAIM OF DEDUCTION UNDER SECTION 80IA OF THE ACT TO KEEP THE MATTER ALIVE. 5. ON APPEAL, THE LEARNED COMMISSIONER OF INCOME T AX (APPEALS) ALLOWED THE DEDUCTION OF RS.59,12,450 /- CLAIMED BY THE ASSESSEE UNDER SECTION 80IA OF THE ACT IN V IEW OF THE BINDING DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS.SRI VELAYUTHASAMY SPINNING MILLS LTD ., CITED SUPRA. 6. BEFORE US, THE LEARNED DEPARTMENTAL REPRESENTATI VE VEHEMENTLY ARGUED IN SUPPORT OF THE ORDER OF THE LE ARNED ASSESSING OFFICER. 7. WE HAVE HEARD THE LEARNED DEPARTMENTAL REPRESENTATIVE AND CAREFULLY PERUSED THE MATERIAL O N RECORD. 4 ITA NO.2453 /MDS/2016 FROM THE FACTS OF THE CASE, WE ARE OF THE CONSIDERE D VIEW THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HA S RIGHTLY FOLLOWED THE DECISION OF THE HONBLE JURISD ICTIONAL HIGH COURT IN THE CASE OF SRI VELAYUDHASAMY SPINNING MIL LS PVT. LTD., CITED SUPRA AND THEREBY ALLOWED THE CLAIM OF DEDUCTION TO THE ASSESSEE UNDER SECTION 80IA OF THE ACT. FUR THER, IT IS NOT THE CASE OF THE REVENUE THAT THE JUDGMENT OF TH E HONBLE MADRAS HIGH COURT IN THE CASE VELAYUDHASAMY SPINNIN G MILLS P. LTD (SURPA) IS STAYED BY THE HONBLE APEX COURT. IT IS PERTINENT TO MENTION THAT IN THE ABSENCE OF ANY STA Y GRANTED BY THE HONBLE APEX COURT AGAINST THE OPERATION OF THE JUDGMENT OF THE HONBLE MADRAS HIGH COURT, ALL THE LOWER JUDICIARIES AS WELL AS QUASI JUDICIAL AUTHORITIES A RE BOUND TO FOLLOW THE DECISION OF THE HONBLE JURISDICTIONAL H IGH COURT. SINCE THE LEARNED COMMISSIONER OF INCOME TAX (APPEA LS) HAS RIGHTLY FOLLOWED THE DECISION OF THE HONBLE JU RISDICTIONAL MADRAS HIGH COURT (SUPRA) AND HELD THE ISSUE IN FAV OUR OF THE ASSESSEE, WE DO NOT FIND IT NECESSARY TO INTERFERE WITH HIS ORDER. THEREFORE WE HEREBY CONFIRM THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS). 5 ITA NO.2453 /MDS/2016 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 24 TH NOVEMBER, 2016 SD/- SD/- ( ' # . $ ) ( . ) ( DUVVURU RL REDDY ) ( A. MOHAN ALANKAMONY ) # % / JUDICIAL MEMBER % / ACCOUNTANT MEMBER # /CHENNAI, ( /DATED 24 TH NOVEMBER, 2016 SOMU *+ ,+ /COPY TO: 1. APPELLANT 2. RESPONDENT 3. - () /CIT(A) 4. - /CIT 5. + 1 /DR 6. /GF