DCIT, Tiruppur V. M/s. Anugraha Fashion Mills Pvt. Ltd., Tiruppur

ITA 2454/CHNY/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8103 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 19-01-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 23-08-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SUNDER RAO
• Assessee Lawyers: S. DHANANJAYAN
• Keywords: Depreciation; Unabsorbed depreciation
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92; 80IA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI [ CAMP: COIMBATORE ] . . . , !' .$%$&, ( ') BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER ./ ITA NO.2454/MDS/2016 & +& / ASSESSMENT YEAR : 2012-13 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 2, 121, SIXTY FEET ROAD, TIRUPUR 641 602. V. M/S ANUGRAHA FASHION MILLS PVT. LTD., NO.15, SURIYAN NAGAR, ABT ROAD NEW EXTN., KARUVAMPALAYAM, TIRUPUR-641 604. PAN : AAHCA 3311 Q (-./ APPELLANT) (/0-./ RESPONDENT) -. 1 2 / APPELLANT BY : SHRI SUNDER RAO, CIT /0-. 1 2 / RESPONDENT BY : SHRI S. DHANANJAYAN, CA 3 1 4( / DATE OF HEARING : 19.01.2017 56+ 1 4( / DATE OF PRONOUNCEMENT : 19.01.2017 / O R D E R PER BENCH: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAI NST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-3, COIMBATORE GRANTING THE CLAIM FOR DEDUCTION U/S.80IA OF THE IN COME TAX ACT, 1961 (IN SHORT 'THE ACT'). 2 I.T.A. NO.2454/MDS/16 2. LD. COMMISSIONER OF INCOME TAX (APPEALS) HAD TAK EN A VIEW THAT UNABSORBED DEPRECIATION OF EARLIER YEARS PRIOR TO THE INITIAL YEAR OF PREFERRING A CLAIM UNDER DEDUCTION U/S.80IA OF THE ACT WAS NOT TO BE NOTIONALLY CARRIED FORWARD AND SET OFF BEFORE GRANT ING SUCH DEDUCTION. THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAD FO LLOWED THE JUDGMENT OF HONBLE JURISDICTIONAL HIGH COURT IN TH E CASE OF M/S. SRI VALAYUTHASAMY SPINNING MILLS LTD VS. ACIT 340 ITR 4 77 . THE CONTENTION OF THE REVENUE BEFORE US IS THAT THE ASS ESSEE HAD CLAIMED DEDUCTION U/S 80IA(4) OF THE ACT WITHOUT SETTING OFF OF THE DEPRECIATION OF THE SAID UNITS FOR THE EARLIER YEARS. WE FIND TH AT THE ISSUE RAISED IN THIS APPEAL IS SQUARELY COVERED BY THE JUDGMENT OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF VELAYUDHASWAMY SPINNING MILLS P. LTD (SUPRA ). ONCE EARLIER LOSSES HAD BEEN SET OFF AGAINST OT HER INCOME, THERE IS NO QUESTION OF NOTIONAL ADJUSTMENT OF SUCH LOSSES AGAINST THE PROFITS OF A GIVEN YEAR AS PER THE ABOVE JUDGMENT, WHILE WORKING OUT DEDUCTION CLAIMED U/S 80IA OF THE ACT. SINCE THE C IT(APPEALS) HAD FOLLOWED THE JUDGMENT OF THE MADRAS HIGH COURT, WE DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE CIT(APPEA LS). 3. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. 3 I.T.A. NO.2454/MDS/16 ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH JANUARY, 2017 AT COIMBATORE. SD/- SD/- ( . . . ) ( !' .$%$& ) (N.R.S. GANESAN) (ABRAHAM P. GEORGE) /JUDICIAL MEMBER ( / ACCOUNTANT MEMBER COIMBATORE, 8 /DATED, THE 18 TH JANUARY, 2017. KRI. 1 /49: ;:+4 /COPY TO: 1. -. /APPELLANT 2. /0-. /RESPONDENT 3. 3 <4 () /CIT(A)-3, COIMBATORE 4. PRINCIPAL CIT-3, COIMBATORE 5. := /4 /DR 6. >& ? /GF.