ACIT, CHENNAI V. Shri G.R.Radhakrishnan, CHENNAI

ITA 529/CHNY/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61153 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2012
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 08-03-2012
• Court: TRIBUNAL
• Department Lawyers: ANUPAMA SHUKLA IRS
• Assessee Lawyers: M P SENTHIL KUMAR
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER ITA NO.528(MDS)/2012 ASSESSMENT YEAR : 2007-08 THE ASSISTANT COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE III(3), CHENNAI. VS. M/S. GRT FIRM, 136, USMAN ROAD, T.NAGAR, CHENNAI-600 017. PAN AADFG7966Q. (APPELLANT) (RESPONDENT) ITA NO.529(MDS)/2012 ASSESSMENT YEAR : 2007-08 THE ASSISTANT COMMISSIONER SHRI G.R.RADH AKRISHNAN, OF INCOME-TAX, VS. 136, USMAN ROAD, T.NAGAR, CENTRAL CIRCLE III(3), CH ENNAI-600 017. CHENNAI. PAN AAEPR6723K. (APPELLANT) (RESPONDENT) AND ITA NO.530(MDS)/2012 ASSESSMENT YEAR : 2007-08 THE ASSISTANT COMMISSIONER SHRI G.RAJEN DRAN, OF INCOME-TAX, VS. 136, USMAN ROAD, T.NAGAR, CENTRAL CIRCLE III(3), C HENNAI-600 017. CHENNAI. PAN AAEPG7361L. (APPELLANT) (RESPONDENT) APPELLANT BY : MS.ANUPAMA SHUKLA, IRS, CIT RESPONDENTS BY : SHRI M.P.SENTHIL KUMAR, ADVOCATE - - ITA 528 TO 530 OF 2012 2 DATE OF HEARING : 4 TH JUNE, 2012 DATE OF PRONOUNCEMENT : 4 TH JUNE, 2012 O R D E R PER DR.O.K.NARAYANAN, VICE PRESIDENT THESE THREE APPEALS ARE FILED BY THE REVENUE FOR THE ASSESSMENT YEAR 2007-08 AGAINST THE ORDERS OF THE COMMISSIONER OF INCOME-TAX(APPEALS)-I AT CHENNAI, D ATED 22-12-2011, PASSED IN THE CASES OF RESPONDENT-ASSES SEES, HEREIN. THE APPEALS ARISE OUT OF THE ASSESSMENTS C OMPLETED UNDER SECTION 143(3) OF THE INCOME-TAX ACT, 1961. 2. THE ONLY AND THE COMMON ISSUE RAISED BY THE REVENUE IN THESE APPEALS IS THAT THE COMMISSIONER O F INCOME- TAX(APPEALS) HAS ERRED IN DIRECTING THE ASSESSING A UTHORITY TO ALLOW THE CARRIED FORWARD DEPRECIATION AND/OR LOSS OF EARLIER YEARS PERTAINING TO WINDMILLS, IF THE DEPRECIATION AND/OR LOSS OF EARLIER YEARS WERE NOT NOTIONAL. IT IS THE CASE OF THE REV ENUE THAT THE DECISION OF THE HONBLE MADRAS HIGH COURT ON THE VE RY SAME - - ITA 528 TO 530 OF 2012 3 SUBJECT, RENDERED IN THE CASE OF VELAYUDHASWAMY SPI NNING MILLS AND OTHERS VS. ACIT, 231 CTR 368 AND THE ORDERS OF THE INCOME-TAX APPELLATE TRIBUNAL IN THE GROUP CASES HA VE NOT BECOME FINAL. 3. THE ISSUE HAS BEEN CONSIDERED BY THE INCOME-TAX APPELLATE TRIBUNAL, D-BENCH, CHENNAI THROUGH THEIR ORDER DATED 30-9-2010 IN ASSESSEES OWN GROUP CASES. RELYING O N THE JUDGMENT OF THE HONBLE MADRAS HIGH COURT, RENDERED IN THE CASE OF VELAYUDHASWAMY SPINNING MILLS, THE TRIBUNAL HELD THAT ONCE THE SET OFF OF DEPRECIATION/LOSS IS TAKEN PLAC E IN EARLIER YEAR AGAINST THE OTHER INCOME OF THE ASSESSEE, THE REVEN UE CANNOT REWORK THE SET OFF AMOUNT AND BRING IT NOTIONALLY. AS HELD BY THE TRIBUNAL, THE ISSUE IS COVERED BY THE JUDGMENT OF T HE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF VELAYUDHAS WAMY SPINNING MILLS AND OTHERS, 231 CTR 368. IN VIEW OF THE MATTER, WE HOLD THAT THE COMMISSIONER OF INCOME-TAX(APPEALS ) HAS PASSED PROPER ORDERS, WHICH ARE SUSTAINABLE IN LAW. THERE IS NO ROOM FOR US TO INTERFERE IN HIS ORDERS. - - ITA 528 TO 530 OF 2012 4 4. THEREFORE, IN RESULT, THESE APPEALS ARE DISMISS ED. ORDERS PRONOUNCED IN THE OPEN COURT AT THE TIME O F HEARING ON MONDAY, THE 4 TH OF JUNE, 2012 AT CHENNAI. SD/- SD/- (VIKAS AWASTHY) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED, THE 4 TH JUNE, 2012. V.A.P. COPY TO: 1. APPELLANT 2. RESPONDENT S 3. CIT 4. CIT(A) 5. DR 6. GF.