ACIT, CHENNAI V. M/s. Sahuwalia Flour Mills, CHENNAI

ITA 2849/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7748 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2016
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 03-10-2016
• Court: TRIBUNAL
• Department Lawyers: ANDARU RAVINDER
• Assessee Lawyers: G RAMAKRISHNAN CA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI , . , ' # BEFORE SHRI SANJAY ARORA, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER ./ I.T.A. NO. 2849/MDS/2016 / ASSESSMENT YEAR : 2012-13 THE ASSISTANT COMMISSIONER OF INCOME TAX, NON CORPORATE CIRCLE - 6, ROOM NO. 223, BSNL COMPLEX, TOWER 1, 2ND FLOOR, GREAMS ROAD, ANNA SALAI, CHENNAI 600 006. VS. M/S. SAHUWALA FLOUR MILLS, 56, NAMIAH MAITRY STREET, TONDIARPET, CHENNAI - 600 081. [PAN: AABFS 8827N] ( / APPELLANT) ( /RESPONDENT) % & / APPELLANT BY : SHRI ANDARU RAVINDER, JCIT )*% & / RESPONDENT BY : SHRI G. RAMAKRISHNAN, CA & /DATE OF HEARING : 27.12.2016 & /DATE OF PRONOUNCEMENT : 29.12.2016 /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)-5, CHENNAI FOR THE ASSESSME NT YEAR 2012-13 PASSED :-2-: I.T.A. NO. 2849/MDS/2016 U/S. 143(3)AND 250 OF THE INCOME TAX ACT, 1961 (HER EIN 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 WINDMILL POWER GENERATION. 3. THE BRIEF FACTS OF THE CASE THAT THE ASSESSEE FI LED RETURN OF INCOME FOR THE ASSESSMENT YEAR 2012-13 ON 29.09.2012 DISCL OSING TOTAL INCOME OF RS. 62,33,429/- 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. 60,90,492/-, BY NOTIONALL Y BRINGING FORWARD AND SETTING OFF LOSS OF THE ELIGIBLE BUSINESS OF THE EA RLIER YEARS. THIS ISSUE, EVEN AS ADMITTED BY THE PARTIES BEFORE US, IS SQUARELY C OVERED BY THE DECISION BY THE HON'BLE JURISDICTIONAL HIGH COURT IN M/S. SRI V ELAYUDHASWAMY SPINNING MILLS PVT. LTD., VS. CIT (231 ITR 368). THE HON'BL E COURT HAS THEREIN CLARIFIED, THAT NOTWITHSTANDING PROVISIONS OF SECTION 80IA(5), SUCH LOSSES, ALREADY SET OFF, CANNOT BE NOTIONALLY BROUGHT FORWARD AND ADJUS TED FOR COMPUTING DEDUCTION U/S. 80IA OF THE ACT. FURTHER, THE REVEN UE HAS NOT ACCEPTED THE JUDGMENT OF MADRAS HIGH COURT AND FILED SPECIAL LEA VE PETITION (SLP) IN THE HON'BLE SUPREME COURT. THE LD. COUNSEL OF THE ASSE SSEE SUBMITTED THAT THE HON'BLE SUPREME COURT IN CIVIL APPEAL NO. 2596/2012 HAS DISMISSED THE :-3-: I.T.A. NO. 2849/MDS/2016 SPECIAL LEAVE PETITION FILED BY THE REVENUE IN ORDE RS DATED 23.09.2016. THEREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINI ON THAT SINCE SPECIAL LEAVE PETITION FILED BEFORE THE APEX COURT IS DISMISSED. THE JUDGMENT OF MADRAS HIGH COURT IS BINDING ON ALL THE AUTHORITIES IN THE STATE OF TAMIL NADU AND UNION TERRITORY OF PONDICHERRY. THEREFORE, THE COM MISSIONER OF INCOME TAX (APPEALS) HAS RIGHTLY ALLOWED THE CLAIM OF THE ASSE SSEE BY FOLLOWING THE JUDGMENT OF MADRAS HIGH COURT IN VELAYUDHASWAMY SPI NNING MILLS (P) LTD., (SUPRA). ACCORDINGLY, THE TRIBUNAL DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS). THE APPEAL O F THE REVENUE IS DISMISSED. 4. IN THE RESULT, THE REVENUE APPEAL FOR THE ASSE SSMENT YEAR 2012- 13 IS DISMISSED. ORDER PRONOUNCED ON THURSDAY, THE 29TH DAY OF DECEM BER, 2016 AT CHENNAI. SD/- ( ) (SANJAY ARORA) ! / ACCOUNTANT MEMBER SD/- ( . ) (G. PAVAN KUMAR) $ ! /JUDICIAL MEMBER /CHENNAI, / /DATED: 29TH DECEMBER, 2016 JPV & )'12 32 /COPY TO: 1. % APPELLANT 2. )*% /RESPONDENT 3. 4 ( )/CIT(A) 4. 4 /CIT 5. 2 )'' /DR 6. 8 /GF