DCIT, Coimbatore V. Salona Cotspin Ltd., Coimbatore

ITA 483/CHNY/2015

• Counselvise Citation: 48321714 RSA 2015
• Duration Of Justice: 8 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 14-10-2015
• Assessment Year: 2011-2012
• Appeal Filed On: 09-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR B NISCHAL
• Assessee Lawyers: G BASKAR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . . . , . !'# ! , % !& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO.483/MDS/2015 ( )( / ASSESSMENT YEAR : 2011-12 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 2, 63-A, RACE COURSE ROAD, COIMBATORE. V. M/S SALONA COTSPIN LTD., 9, RAMALINGA NAGAR 4 TH CROSS, SAIBABA COLONY, COIMBATORE 641 011. PAN : AACCS 4554 N (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANT BY : DR. B. NISCHAL, JCIT -.+, / 0 / RESPONDENT BY : SHRI G. BASKAR, ADVOCATE 1 / 2% / DATE OF HEARING : 14.10.2015 3') / 2% / DATE OF PRONOUNCEMENT : 13.11.2015 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-1, COIMBAT ORE, DATED 29.12.2014 AND PERTAINS TO ASSESSMENT YEAR 2011-12. 2 I.T.A. NO.483/MDS/15 2. DR. B. NISCHAL, THE LD. DEPARTMENTAL REPRESENTAT IVE, SUBMITTED THAT THE ONLY ISSUE ARISES FOR CONSIDERAT ION IS WITH REGARD TO DEDUCTION CLAIMED BY THE ASSESSEE UNDER SECTION 80-IA OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'). THE CIT (APPEALS) ALLOWED THE CLAIM OF THE ASSESSEE ON THE BASIS OF THE JUDGM ENT OF THE MADRAS HIGH COURT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD. V. ACIT (2010) (231 CTR 368). THE ONLY OBJECTION OF T HE REVENUE IS THAT IT HAS ALREADY FILED A SPECIAL LEAVE PETITION BEFORE THE SUPREME COURT AGAINST THE JUDGMENT OF MADRAS HIGH COURT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD. (SUPRA). 3. WE HAVE HEARD SHRI G. BASKAR, THE LD.COUNSEL FOR THE ASSESSEE ALSO. THE ASSESSEE CLAIMED DEDUCTION UNDE R SECTION 80- IA OF THE ACT. HOWEVER, THE ASSESSING OFFICER REJE CTED THE SAME. THE CIT(APPEALS), BY FOLLOWING THE JUDGMENT OF MADR AS HIGH COURT IN VELAYUDHASWAMY SPINNING MILLS (P) LTD. (SUPRA), ALLOWED THE CLAIM OF THE ASSESSEE. IT IS NOT THE CASE OF THE R EVENUE THAT THE JUDGMENT OF MADRAS HIGH COURT IN VELAYUDHASWAMY SPI NNING MILLS (P) LTD. (SUPRA) IS NOT APPLICABLE TO THE CASE BEFO RE US. THE ONLY OBJECTION OF THE LD. D.R. IS THAT AN SLP IS PENDING BEFORE THE SUPREME COURT. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT 3 I.T.A. NO.483/MDS/15 MERE PENDENCY OF SLP BEFORE THE SUPREME COURT CANNO T BE A REASON NOT TO FOLLOW THE JUDGMENT OF THE JURISDICTI ONAL HIGH COURT. IN OTHER WORDS, THE JUDGMENT OF THE MADRAS HIGH COURT IS NOT ONLY BINDING ON THIS TRIBUNAL BUT ALSO BINDING ON BOTH T HE PARTIES BEFORE THIS TRIBUNAL. THEREFORE, THE CIT(APPEALS) HAS RIG HTLY FOLLOWED THE JUDGMENT OF THE JURISDICTIONAL HIGH COURT IN VELAYU DHASWAMY SPINNING MILLS (P) LTD. (SUPRA). THEREFORE, THIS T RIBUNAL DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE CIT(A PPEALS) AND ACCORDINGLY, THE SAME IS CONFIRMED. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED ON 13 TH NOVEMBER, 2015 AT CHENNAI. SD/- SD/- (. !'# ! ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 13 TH NOVEMBER, 2015. KRI. / -267 87)2 /COPY TO: 1. +, /APPELLANT 2. -.+, /RESPONDENT 3. 1 92 () /CIT(A)-1, COIMBATORE 4. 1 92 /CIT-1, COIMBATORE 5. 7: -2 /DR 6. ( ; /GF.