DCIT, Tiruppur V. Shri Kandasamy Vasunathan, Tiruppur

ITA 2488/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7903 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2016
• Appeal Filed By: Department
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 26-08-2016
• Court: TRIBUNAL
• Assessee Lawyers: T BANUSEKARC A
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI , . , ' # BEFORE SHRI SANJAY ARORA, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER ./ I.T.A. NO. 2488/MDS/2016 / ASSESSMENT YEAR : 2013-14 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 2, 121, SIXTY FEET ROAD, TIRUPUR - 641 602. VS. SHRI KANDASAMY VASUNATHAN, S.F. NO. 708/2, THATCHAN THOTTAM, NEAR GOVT HOSPIALS, DHARAPURAM ROAD, TIRUPUR - 642 608. [PAN: ABPPV 8547H] ( / APPELLANT) ( /RESPONDENT) % & / APPELLANT BY : NONE )*% & / RESPONDENT BY : SHRI T. BANUSEKAR, CA & /DATE OF HEARING : 01.12.2016 & /DATE OF PRONOUNCEMENT : 16.12.2016 /O R D E R PER G. PAVAN KUMAR, JUDICIAL MEMBER: THE APPEAL FILED BY THE REVENUE AGAINST THE ORDER O F COMMISSIONER OF INCOME-TAX (APPEALS)-3 COIMBATORE, FOR THE ASSES SMENT YEAR 2013-14 :-2-: I.T.A.NO.2488/MDS/2016 PASSED U/S. 143(3)AND 250 OF THE INCOME TAX ACT, 19 61 (HEREIN AFTER REFERRED TO AS 'THE ACT'). 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS WITH REGARD TO DEDUCTION ELIGIBLE TO THE ASSESSEE U/S. 80IA OF THE INCOME TA X ACT, 1961 (IN SHORT 'THE ACT') IN RESPECT OF WINDMILLS TURBINE GENERATOR. 3. THE BRIEF FACTS OF THE CASE THAT THE ASSESSEE FI LED RETURN OF INCOME FOR THE ASSESSMENT YEAR 2013-2014 ON 26.09.2013 DIS CLOSING TOTAL INCOME OF RS. 1,10,33,070/- AND AGRICULTURAL INCOME OF RS. 5, 45,000/- AND ASSESSMENT WAS COMPLETED U/S. 143(3) OF THE ACT. THE LD. AO, RELYING ON PROVISIONS OF SECTION 80IA(5) DENIED THE ASSESSEE DEDUCTION U/S. 80IA, CLAIMED AT RS. 35,97,079/-, BY NOTIONALLY BRINGING FORWARD AND SET TING OFF LOSS OF THE ELIGIBLE BUSINESS OF THE EARLIER YEARS. THIS ISSUE, EVEN AS ADMITTED BY THE PARTIES BEFORE US, IS SQUARELY COVERED BY THE DECISION BY T HE HON'BLE JURISDICTIONAL HIGH COURT IN M/S. SRI VELAYUDHASWAMY SPINNING MILL S PVT. LTD., VS. CIT (231 ITR 368). THE HON'BLE COURT HAS THEREIN CLARIFIED, THAT NOTWITHSTANDING PROVISIONS OF SECTION 80IA(5), SUCH LOSSES, ALREADY SET OFF, CANNOT BE NOTIONALLY BROUGHT FORWARD AND ADJUSTED FOR COMPUTI NG DEDUCTION U/S. 80IA OF THE ACT. FURTHER, THE REVENUE HAS NOT ACCEPTED THE JUDGMENT OF MADRAS HIGH COURT AND FILED SPECIAL LEAVE PETITION (SLP) IN THE HON'BLE SUPREME COURT. THE LD. COUNSEL OF THE ASSESSEE SUBMITTED THAT THE HON'BLE SUPREME COURT IN :-3-: I.T.A.NO.2488/MDS/2016 CIVIL APPEAL NO. 2596/2012 HAS DISMISSED THE SPECIA L LEAVE PETITION FILED BY THE REVENUE IN ORDERS DATED 23.09.2016. THEREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT SINCE SPECIAL LEAVE PETITIO N FILED BEFORE THE APEX COURT IS DISMISSED. THE JUDGMENT OF MADRAS HIGH CO URT IS BINDING ON ALL THE AUTHORITIES IN THE STATE OF TAMIL NADU AND UNION TE RRITORY OF PONDICHERRY. THEREFORE, THE COMMISSIONER OF INCOME TAX (APPEALS) HAS RIGHTLY ALLOWED THE CLAIM OF THE ASSESSEE BY FOLLOWING THE JUDGMENT OF MADRAS HIGH COURT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD., (SUPRA). A CCORDINGLY, THE TRIBUNAL DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE COMMI SSIONER OF INCOME TAX (APPEALS). THE APPEAL OF THE REVENUE IS DISMISSED. 4. IN THE RESULT, THE REVENUE APPEAL FOR THE ASSE SSMENT YEAR 2013- 14 IS DISMISSED. ORDER PRONOUNCED ON FRIDAY, THE 16TH DAY OF DECEMBE R, 2016 AT CHENNAI. SD/- ( ) (SANJAY ARORA) ! / ACCOUNTANT MEMBER SD/- ( . ) (G. PAVAN KUMAR) $ ! /JUDICIAL MEMBER /CHENNAI, / /DATED: 16TH DECEMBER, 2016 JPV & )'12 32 /COPY TO: 1. % APPELLANT 2. )*% /RESPONDENT 3. 4 ( )/CIT(A) 4. 4 /CIT 5. 2 )'' /DR 6. 8 /GF