DCIT Corporate Circle 6(1), CHENNAI V. Sattva CFS & Logistics Pvt Ltd., CHENNAI

ITA 2733/CHNY/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5172 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 13-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R ANITHA
• Assessee Lawyers: R RAJAGOPALAKRISHNAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , B B ENCH, CHENNAI . . . , . , ! BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.2733/CHNY/2017 ( / ASSESSMENT YEAR: 2009-10) THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 6(1), CHENNAI. VS M/S. SATTVA CFS & LOGISTICS PVT. LTD., NO.153, HIGH GATE LEVEL 4, SANTHOME ROAD, R.A. PURAM, CHENNAI 600 085. PAN: AAJCS5251M ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MS. R. ANITHA, JCIT / RESPONDENT BY : SHRI R. RAJAGOPALA KRISHNAN, CA /DATE OF HEARING : 10.04.2018 /DATE OF PRONOUNCEMENT : 31.05.2018 / O R D E R PER A. MOHAN ALANKAMONY, AM:- THE APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) -15, CHENNAI, DATED 25.09.2017 IN ITA NO.489/16-17/CIT(A )-15 FOR THE ASSESSMENT YEAR 2009-10 PASSED U/S.250(6) R.W.S. 14 3(3) & 147 OF THE ACT. 2 ITA NO.2733/CHNY/201 7 2. THE ONLY ISSUE RAISED BY THE REVENUE IS THAT TH E LD.CIT(A) HAS ERRED IN DIRECTING THE LD.AO TO ALLOW DEDUCTION OF RS.5,30,35,455/- UNDER SUB-SECTION 4(I) OF SECTION 80IA OF THE ACT. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE IS A PRIVATE LIMITED COMPANY ENGAGED IN THE BUSINESS OF OPERATING CONTAINER FREIGHT STATION AND WAREHOUSING FACILITIE S, FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2009-10 ON 24.09.200 9 DECLARING NIL INCOME AFTER CLAIMING DEDUCTION OF RS.5,80,96 ,012/- UNDER SECTION 80IA OF THE ACT. THE CASE WAS SELECTED FOR SCRUTINY THROUGH CASS AND FINALLY ASSESSMENT ORDER WAS PASSED U/S.14 3(3) R.W.S. 147 OF THE ACT ON 30.12.2016 WHEREIN THE LD.AO ASSE SSED THE INCOME OF THE ASSESSEE AS RS.5,30,53,455/- BY DISAL LOWING THE ASSESSEES CLAIM OF DEDUCTION U/S.80IA OF THE ACT. 4. AT THE OUTSET THE LD.AR SUBMITTED THAT IN THE C ASE OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2010-11, IN ITA NO.701/MDS/2015, VIDE ORDER DATED 01.01.2016, THE C HENNAI BENCH OF THE TRIBUNAL HAD HELD THE MATTER IN FAVOUR OF THE ASSESSEE. HE FURTHER SUBMITTED THAT THE LD.AO HAD D ISALLOWED THE CLAIM OF DEDUCTION U/S.80IA OF THE ACT FOR THE RELE VANT ASSESSMENT 3 ITA NO.2733/CHNY/201 7 YEAR STATING THAT THE REVENUE HAD CONTESTED THE DEC ISION OF THE TRIBUNAL IN THE ASSESSEES CASE FOR THE ASSESSMENT YEAR 2010-11 BEFORE THE HONBLE HIGH COURT. IT WAS ALSO POINTED OUT BY THE LD.AR THAT IN THE CASE OF M/S. AL LOGISTICS PVT. LTD., ON THE IDENTICAL ISSUE, THE REVENUE HAD FILED A SLP BEFORE THE HONBLE SUPR EME COURT, DISREGARDING THOSE FACTS THE LD.AO HELD THE ISSUE A GAINST THE ASSESSEE ON THE GROUND THAT THE DECISION OF THE TRI BUNAL AND THE HONBLE JURISDICTIONAL HIGH COURT HAS NOT REACHED F INALITY, HENCE THE SAME NEED NOT BE FOLLOWED AS BINDING PRECEDENT. THE LD.AR FURTHER SUBMITTED THAT THE LD.CIT(A) FOLLOWING THE DECISION OF THE CHENNAI BENCH OF THE TRIBUNAL ON THE IDENTICAL ISSU E IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2010-11 , HELD THE ISSUE IN FAVOUR OF THE ASSESSEE, AGAINST WHICH THE REVENUE IS ON APPEAL BEFORE THE TRIBUNAL. IT WAS THEREFORE PLEADE D THAT THE APPEAL OF THE REVENUE IS DEVOID OF MERITS AND MAY BE DISMI SSED. THE LD.DR COULD NOT CONTROVERT TO THE SUBMISSION OF THE LD.AR. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFUL LY PERUSED THE MATERIALS ON RECORD. IT IS NOT IN DISPUTED THAT ON THE IDENTICAL ISSUE IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2010- 11, THE CHENNAI BENCH OF THE TRIBUNAL HAD DECIDED T HE MATTER IN 4 ITA NO.2733/CHNY/201 7 FAVOUR OF THE ASSESSEE. IN THESE CIRCUMSTANCES WE D O NOT FIND IT NECESSARY TO INTERFERE WITH THE ORDER OF THE LD.CIT (A) FOR THE RELEVANT ASSESSMENT YEAR BECAUSE HE HAS ONLY FOLLOW ED THE DECISION OF THE TRIBUNAL. ACCORDINGLY WE HEREBY UPH OLD THE ORDER OF THE LD.CIT(A). 6. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED ON THE 31 ST MAY, 2018 AT CHENNAI. SD/- SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER ( . ) (A. MOHAN ALANKAMONY) / ACCOUNTANT MEMBER #$ /CHENNAI, %& /DATED 31 ST MAY, 2018 RSR & () *) /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. - ( )/CIT(A) 4. - /CIT 5. )./ 0 /DR 6. /1 /GF