DCIT, Coimbatore V. S.Martin, Coimbatore

ITA 294/CHNY/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90753 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2015
• Appeal Filed By: Department
• Bench Allotted: C
• Next Hearing Date: 27-07-2015
• Assessment Year: 2011-2012
• Appeal Filed On: 02-02-2015
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Assessee Lawyers: DHIRAJ RAMAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : CHENNAI . . . , ! , ' #$ % [ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ] ./ I.T.A.NO.294/MDS/2015 / ASSESSMENT YEAR : 2011-12 THE DY. COMMISSIONER OF INCOME-TAX CORPORATE CIRCLE 2 COIMBATORE VS. SHRI S. MARTIN 355-359, DAISY PLAZA 6 TH STREET GANDHIPURAM COIMBATORE 641 102 [PAN AEWPM 3703 Q ] ( &' / APPELLANT) ( ()&' /RESPONDENT) / APPELLANT BY : SHRI A.V. SREEKANTH, JCIT /RESPONDENT BY : SHRI DHIRAJ RAMAN, ADVOCATE / DATE OF HEARING : 27-07-2015 / DATE OF PRONOUNCEMENT : 31-07-2015 / O R D E R PER N.R.S.GANESAN, JUDICIAL MEMBER THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-I, COIMBAT ORE, DATED 12.11.2014 AND PERTAINS TO ASSESSMENT YEAR 2011-12 . 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS WITH REG ARD TO DEDUCTION U/S 80IA OF THE ACT. ITA NO. 294/15 :- 2 -: 3. WE HEARD SHRI A.V.SREEKANTH, LD. DEPARTMENTAL REPRESENTATIVE AND SHRI DHIRAJ RAMAN, LD. COUNSEL F OR THE ASSESSEE. 4. THE ASSESSING OFFICER COMPUTED DEDUCTION U/S 80IA OF THE ACT AFTER ADJUSTING THE NOTIONAL LOSS BROUGHT FORW ARD FROM THE YEAR OF COMMENCEMENT AS AGAINST THE INITIAL YEAR OF CLAIM. THE ASSESSEE CLAIMED THAT THE NOTIONAL LOSS BROUGHT FORWARD CANN OT BE ADJUSTED FOR CLAIMING DEDUCTION U/S 80IA OF THE ACT. THE ASSES SING OFFICER AT PARA 6 OF HIS ORDER FOUND THAT THE CLAIM OF THE ASSESSE E IS SUPPORTED BY THE JUDGMENT OF THE MADRAS HIGH COURT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD VS ACIT, 231 CTR 368. HOWEVER, HE DISALLOW ED THE CLAIM OF THE ASSESSEE ON THE GROUND THAT THE DEPARTMENT HAS FILED AN APPEAL BEFORE THE APEX COURT AND THE SAME IS PENDING. HOW EVER, ON APPEAL BY THE ASSESSEE, THE CIT(A), BY FOLLOWING THE JUDG MENT OF THE MADRAS HIGH COURT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD (SUPRA) ALLOWED THE CLAIM OF THE ASSESSEE. 5. AFTER HEARING BOTH PARTIES, WE FIND THAT MERE PENDE NCY OF THE SLP BEFORE THE APEX COURT CANNOT BE A REASON FO R NOT FOLLOWING THE JUDGMENT OF THE JURISDICTIONAL HIGH COURT. IT IS N OT IN DISPUTE THAT THE JUDGMENT OF THE JURISDICTIONAL HIGH COURT IS SQUARE LY APPLICABLE TO THE FACTS OF THE CASE. THEREFORE, THE CIT(A) HAS RIGHT LY FOLLOWED THE JUDGMENT OF THE JURISDICTIONAL HIGH COURT AND ALLOW ED THE CLAIM OF THE ITA NO. 294/15 :- 3 -: ASSESSEE. THIS TRIBUNAL DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A) AND ACCORDINGLY, THE SAME IS CONFIRMED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST OF JULY, 2015, AT CHENNAI. SD/- SD/- ( ! ) (CHANDRA POOJARI) ' / ACCOUNTANT MEMBER ( . . . ! ) (N.R.S. GANESAN) / JUDICIAL MEMBER '# / CHENNAI $% / DATED: 31 ST JULY, 2015 RD %&'' ()'*) / COPY TO: ' 1 . / APPELLANT 4. ' + / CIT 2. / RESPONDENT 5. ),-' . / DR 3. ' +'/! / CIT(A) 6. -0'1 / GF