ACIT, Coimbatore V. VXL Systems, Coimbatore

ITA 444/CHNY/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 9321 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-05-2016
• Appeal Filed By: Department
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 29-02-2016
• Court: TRIBUNAL
• Assessee Lawyers: A S SRIRAMAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI . , . !' , # % & [ BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER ] ./ I.T.A.NO.444/MDS/2016 / ASSESSMENT YEAR : 2012-13 THE ASSTT. COMMISSIONER OF INCOME-TAX NON-CORPORATE CIRCLE-4 COIMBATORE VS. M/S VXL SYSTEMS 59, SIDCO INDUSTRIAL ESTATE SUNDARAPURAM KURICHI, COIMBATORE [PAN AACFV 2118 C ] ( '( / APPELLANT) ( )*'( /RESPONDENT) / APPELLANT BY : SHRI GURU BASHYAM, JCIT /RESPONDENT BY : SHRI A.S. SRIRAMAN, AD VOCA TE / DATE OF HEARING : 10 - 05 - 2016 / DATE OF PRONOUNCEMENT : 12 - 05 - 2016 !' / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-3, COIMBA TORE, DATED 27.11.2015 IN I.T.A.NO.577/14-15 FOR ASSESSMENT YEA R 2012-13. 2. AT THE OUTSET, IT WAS NOTICED THAT THERE WAS A DEL AY OF 8 DAYS IN FILING THE APPEAL BY THE REVENUE. THE RE VENUE HAS FILED A PETITION FOR CONDONATION OF DELAY. WE HAVE HEARD T HE LD. DR AND THE ITA NO. 444/16 :- 2 -: LD. AR. WE FIND THAT THERE WAS SUFFICIENT CAUSE FO R NOT FILING THE APPEAL WITHIN THE STIPULATED TIME. THEREFORE, WE CONDONE THE DELAY OF 8 DAYS AND ADMIT THE APPEAL FOR HEARING ON MERIT. 3. THE ONLY ISSUE RAISED BY THE REVENUE IN THIS APPEAL IS WITH REGARD TO DELETION OF DISALLOWANCE U/S 80IA OF THE INCOME-TAX ACT, 1961. 4. THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS A FIRM ENGAGED IN THE BUSINESS OF MANUFACTURING OF TEXTILE MACHINERY ACCESSORIES AND GENERATION AND DISTRIBUTION OF ELEC TRICITY. THE ASSESSEE CLAIMED DEDUCTION U/S 80IA OF THE ACT T O THE EXTENT OF ` 2,10,14,813/- AGAINST THE INCOME GENERATED FROM WIN DMILL. THE ASSESSING OFFICER DISALLOWED THE CLAIM OF THE ASSE SSEE IN VIEW OF THE PROVISIONS OF SEC.80IA(5) OF THE ACT. THE ASSESSEE S CLAIM THAT IT IS ENTITLED FOR DEDUCTION U/S 80IA OF THE ACT IN VIE W OF THE JUDGMENT OF THE MADRAS HIGH COURT IN VELAYUDHASWAMY SPILLING MI LLS (P) LTD VS ACIT, 231 CTR 368, WAS REJECTED BY THE ASSESSING OF FICER ON THE GROUND THAT THE JUDGMENT OF THE MADRAS HAS NOT BECO ME FINAL AND THE REVENUE HAS FILED SLP BEFORE THE APEX COURT. ON APP EAL, THE CIT(A), BY FOLLOWING THE JUDGMENT OF THE MADRAS HIGH COURT IN THE CASE OF VELAYUDHASWSAMY SPINNING MILLS (P) LTD VS ACIT (SUP RA), ALLOWED THE CLAIM OF THE ASSESSEE. ACCORDING TO THE LD. DR, T HE REVENUE HAS FILED SLP BEFORE THE APEX COURT AGAINST THE JUDGMENT OF T HE MADRAS HIGH ITA NO. 444/16 :- 3 -: COURT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD. (SU PRA) BEFORE THE APEX COURT AND THE SAME IS STILL PENDING. THEREFORE , TO KEEP THE MATTER ALIVE, THE REVENUE HAS FILED THE APPEAL. 5. ON THE OTHER HAND, THE LD. AR RELIED ON THE ORDER O F THE CIT(A). 6. AFTER HEARING BOTH THE PARTIES, WE FIND THAT THE CI T(A) HAS ALLOWED THE CLAIM OF THE ASSESSEE FOR DEDUCTION U/ S 80IA BY FOLLOWING THE BINDING JUDGMENT OF THE MADRAS HIGH COURT IN VE LAYUDHASWAMY SPINNING MILLS (P) LTD. (SUPRA). THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT MERE PENDENCY OF SLP BEFORE THE APEX C OURT CANNOT BE A REASON FOR NOT FOLLOWING THE JUDGMENT OF THE JURISD ICTIONAL HIGH COURT. THE CIT(A) HAS RIGHTLY ALLOWED THE CLAIM OF THE AS SESSEE BY FOLLOWING THE JUDGMENT OF THE MADRAS HIGH COURT IN VELAYUDHAS WAMY SPINNING MILLS P. LTD. (SUPRA). THEREFORE, THIS TRIBUNAL DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A) AND ACCORDING THE SAME I S CONFIRMED. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON 12 TH MAY, 2016, AT CHENNAI. SD/- SD/- ( # . $ % $ ) (A. MOHAN ALANKAMONY) !& / ACCOUNTANT MEMBER ' ( ' . ! ) ) ( V. DURGA RAO ) * !& / JUDICIAL MEMBER +* / CHENNAI ,! / DATED:12 TH MAY, 2016 RD ITA NO. 444/16 :- 4 -: !''' -.'/. / COPY TO: ' 1 . / APPELLANT 4. ' 0 / CIT 2. / RESPONDENT 5. .1)' 2 / DR 3. ' 0'(3 / CIT(A) 6. )4'5 / GF