Emerald Jewel Industry (I) P. Limited, Coimbatore V. Addl. CIT, Coimbatore

ITA 439/CHNY/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5054 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-05-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 07-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K E B RENGARAJAN
• Assessee Lawyers: S SRIDHAR
• Section: 80HHC

Judgement Text

IN THE INCOME - TAX APPELLATE TRIBUNAL CHENNAI B BENCH, CHENNAI. BEFORE SHRI.U.B.S. BEDI J.M. & SHRI. N.S. SAINI A.M. I.T.A. NO. 439 / MDS/201 1 ASSESSMENT YEAR: 200 7 - 0 8 EMERALD JEWEL INDUSTRY (I) P. LTD., 333, IIND FLOOR, BIG BAZAAR STREET, COIMBATORE 64 1 001. [PAN:A ABCE3430A ] VS. THE ADDL. COMMISSIONER OF INCOME TAX, RANGE I, COIMBATORE. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI S. SRIDHAR REVENUE BY : SHRI K.E.B. RENGARAJAN ORDER PER U.B.S. BEDI, J.M . TH IS APPEAL OF THE ASSESSEE IS DIRE CTED AGAINST THE ORDER PASSED BY THE LD. CIT(A) I , C OIMBATORE DATED 03 . 12 .2010 RELEVANT TO THE ASSESSMENT YEAR 200 7 - 0 8 , WHEREBY THE ASSESSEE HAS CHALLENGED THE ORDER OF THE LD. CIT(A) IN DENYING DEDUCTION CLAIMED BY THE ASSESSEE UNDER SECTION 80IA BY GOING WRONG ON FACTS BY CONCLUDING THAT THE ASSESSEE HAD CAPTIVELY USED THE ELECTRICITY GENERATED BY THE WINDMILL AND THE ASSESSEE HAD ALSO SOLD ELECTRICITY TO TNEB AND SEPARATE ACCOUNTS IN RESPECT OF THE WIND MILL DIVISION WERE MAINTAINED AND IT HAD TREATED WI NDMILL AS SEPARATE BUSINESS, ON WHICH THE ASSESSEE HAD BEEN ALLOWED DEDUCTION IN RESPECT OF EARLIER ASSESSMENT YEAR AND THERE HAD BEEN NO CHANGE ON FACTS SO AS TO DENY THE DEDUCTION IN RESPECT OF RELEVANT ASSESSMENT YEAR. I.T.A. NO . 439 /MDS/1 0 2 2. AT THE VERY OUTSET, THE LD. CO UNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE IN HAND IS COVERED BY THE DECISION OF THE HON BLE JURISDICTIONAL HIGH COURT IN THE CASE OF TAMILNADU PETRO PRODUCTS LTD. SO FAR AS THE ISSUE IN HAND IS CONCERNED, WHICH HAS BEEN FOLLOWED BY THE C BENCH OF I TAT IN THE CASE OF TAMILNADU PETRO PRODUCTS FOR THE ASSESSMENT YEAR 2002 - 03 IN CROSS APPEALS IN ITA NO. 434/MDS/2006 AND 725/MDS/2006 DATED 21.04.2011. BUT CERTAIN DETAILS AS CONSIDERED IN THIS DECISION ARE NOT FOUND FROM THE AVAILABLE RECORD SO IN THE INT EREST OF JUSTICE, IT WOULD BE APPROPRIATE TO SET ASIDE THE ORDERS OF AUTHORITIES BELOW AND RESTORE THE MATTER BACK ON THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION TO RE - DECIDE THE ISSUE IN THE LIGHT OF LATEST DECISION ON THE SUBJECT AND TO THIS PLE A OF THE LD. COUNSEL FOR THE ASSESSEE, THE LD. DR SUBMITTED THAT HE HAS NO OBJECTION IN CASE ORDERS OF AUTHORITIES BELOW IS SET ASIDE AND THE ISSUE UNDER CONSIDERATION IS RESTORED BACK ON THE FILE OF THE ASSESSING OFFICER FOR RECONSIDERATION. 3. WE HAVE HEARD BOTH THE SIDES, CONSIDERED THE MATERIAL ON RECORD AS WELL AS PRECEDENT RELIED UPON BY THE LD. COUNSEL FOR THE ASSESSEE AND FIND THAT CERTAIN FACTS AND MATERIAL IS REQUIRED TO BE LOOKED INTO IN ORDER TO CONSIDER THE APPLICABILITY OF RATIO OF DECISION TAKEN BY VARIOUS BENCHES OF THE TRIBUNAL AND HON BLE HIGH COURT INCLUDING THAT OF THE TAMILNADU PETRO PRODUCTS LTD. IN TCA NOS. 896 TO 902 OF 2009 DATED 02.11.2010. THEREFORE, WHILE ACCEPTING HE PLEA OF THE ASSESSEE S COUNSEL AND THERE BEING NO OBJECTION F ROM REVENUE SIDE, WE SET ASIDE THE ORDERS OF AUTHORITIES BELOW IN THIS REGARD AND RESTORE THE MATTER BACK ON THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION TO RE - CONSIDER THE I.T.A. NO . 439 /MDS/1 0 3 CLAIM OF THE ASSESSEE UNDER SECTION 80HHC IN RELATION TO POWER GENERATION, WHICH WAS USED CAPTIVELY BY IT FOR ITS OWN PRODUCTION PURPOSE AFTER GIVING DUE OPPORTUNITY TO THE ASSESSEE. WE HOLD AND DIRECT ACCORDINGLY. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE GETS ACCEPTED FOR STATISTICAL PURPOSE. O RDER PRONOUNCED SOON A FTER THE CONCLUSION OF HEARING ON 24 .05 .2011 . SD/ - SD/ - ( N.S. SAINI ) ACCOUNTANT MEMBER (U.B.S. BEDI) JUDICIAL MEMBER CHENNAI, DATED, THE. 24 . 0 5 .2011 VM/ - TO: THE ASSESSEE/A.O./CIT(A)/CIT/D.R .