DCIT, Tiruppur V. M/s. Sivaraj Spinning Mills P Ltd., Tiruppur

ITA 800/CHNY/2011

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 6553 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-07-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2007-2008
• Appeal Filed On: 02-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIRUDH RAI
• Assessee Lawyers: T BANUSEKAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH D CHENNAI BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER I.T.A.NO. 800/MDS/2011 ASSESSMENT YEAR : 2007-08 THE DEPUTY COMMISSIONER OF INCOME-TAX, COMPANY CIRCLE, 121, 60 FEET ROAD, TIRUPUR 641 602. VS. M/S. SIVARAJ SPINNING MILLS P. LTD., 207/86, MANGALAM ROAD, KARUVAMPALAYAM, TIRUPUR 4. PAN AADCS 0681 H (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ANIRUDH RAI, CIT-DR RESPONDENT BY : SHRI T. BANUSEKAR, CA O R D E R PER DR. O.K. NARAYANAN, VICE-PRESIDENT THIS APPEAL IS FILED BY THE REVENUE FOR THE ASSESS MENT YEAR 2007-08. THE ONLY GROUND RAISED BY THE REVENU E IN THE PRESENT APPEAL IS THAT THE COMMISSIONER OF INCOME-T AX (APPEALS) HAS ERRED IN DIRECTING THE ASSESSING OFFICER TO ALL OW DEDUCTION UNDER SEC.80IA TREATING THE ASSESSMENT YEAR AS THE INITIAL ASSESSMENT YEAR. ITA 800/11 :- 2 -: 2. THIS ISSUE RAISED BY THE REVENUE WAS CONSIDERED BY THE HONBLE HIGH COURT OF MADRAS IN THE CASE OF VELAYUD HASWAMY SPINNING MILLS (P) LTD. V. ACIT REPORTED IN 231 CTR (MAD) 368 THE HONBLE HIGH COURT HELD THAT THE LAW PERMITS AN ASSESSEE TO CHOOSE THE INITIAL ASSESSMENT YEAR FOR THE PURPOSE OF CLAIMING OF DEDUCTION UNDER SEC.80IA FOR A PERIOD OF 10 ASSESSM ENT YEARS OUT OF THE ELIGIBLE PERIOD OF 15 YEARS. IN VIEW OF THE ABOVE FINDING OF THE HONBLE JURISDICTIONAL HIGH COURT, WE FIND THAT THIS APPEAL FILED BY THE REVENUE IS LIABLE TO BE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON THURSDAY, THE 14 TH DAY OF JULY, 2011 AT CHENNAI. SD/- SD/- (HARI OM MARATHA) (DR.O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 14 TH JULY, 2011 MPO* COPY TO : APPELLANT/RESPONDENT/CIT/CIT(A)/DR