ACIT, CHENNAI V. M/s TamilNadu Petroproducts Ltd., CHENNAI

ITA 985/CHNY/2009

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5046 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 10 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 20-04-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 18-06-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R VIJAYARAGHAVAN
• Section: 80HHC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH A CHENNAI (BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER) .. I.T.A. NO. 985/MDS/2009 ASSESSMENT YEAR : 2004-05 THE ASSISTANT COMMISSIONER OF INCOME TAX, LARGE TAXPAYER UNIT, CHENNAI 600 101. (APPELLANT) V. M/S TAMILNADU PETROPRODUCTS LTD., 9, MANALI EXPRESS ROAD, MANALI, CHENNAI 600 068. PAN : AAACT1295M (RESPONDENT) APPELLANT BY : SHRI SHAJI P. JACOB RESPONDENT BY : SHRI R. VIJ AYARAGHAVAN O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : IN THIS APPEAL OF THE REVENUE, THE FIRST GRIEVANCE RAISED BY IT IS THAT CIT(APPEALS) ALLOWED DEDUCTION UNDER SECTION 8 0HHC OF INCOME-TAX ACT, 1961 (HEREINAFTER CALLED THE ACT) TO THE ASSESSEE WITHOUT REDUCING THE RELIEF GIVEN TO IT UNDER SECTI ON 80-IA OF THE ACT. ACCORDING TO REVENUE, THE DECISION OF HON'BLE JURIS DICTIONAL HIGH COURT IN THE CASE OF SCM CREATIONS V. ACIT (304 ITR 319) RELIED ON BY THE CIT(APPEALS) HAD NOT BECOME FINAL. I.T.A. NO. 985/MDS/09 2 2. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT GRIEVANCE RAISED BY THE REVENUE DOES NOT SURVIVE ANY MORE IN VIEW OF THE SUBSEQUENT DECISION OF HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT V. MRF LTD. [TC(A) NO.1020 OF 2009 DATED 27. 10.2009]. 3. PER CONTRA, LEARNED D.R. SUBMITTED THAT RELIEF U NDER SECTION 80- IA COULD NOT HAVE BEEN GIVEN BEFORE WORKING OUT THE BENEFIT AVAILABLE TO THE ASSESSEE UNDER SECTION 80HHC OF THE ACT. 4. WE HAVE PERUSED THE ORDERS AND HEARD THE RIVAL C ONTENTIONS. IN OUR OPINION, THE MATTER STANDS RESOLVED WITH THE DE CISION OF HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF MRF LTD. ( SUPRA). THE RELEVANT ASSESSMENT YEAR WAS 2004-05 BEFORE THE JUR ISDICTIONAL HIGH COURT AND THEIR LORDSHIP HELD THAT RELIANCE PLACED BY THIS TRIBUNAL ON THE DECISION OF SCM CREATIONS (SUPRA) WAS JUSTIFIED . WE ARE, THEREFORE, OF THE OPINION THAT LD. CIT(APPEALS) WAS JUSTIFIED IN DIRECTING THE A.O. TO DEDUCT RELIEF UNDER SECTION 80-IA OF TH E ACT BEFORE WORKING OUT THE DEDUCTION OF THE ASSESSEE UNDER SEC TION 80HHC OF THE ACT. GROUND NO.2 TAKEN BY THE REVENUE STANDS D ISMISSED. 5. THE OTHER GROUND TAKEN BY THE REVENUE IS REGARDI NG ENTITLEMENT OF THE ASSESSEE FOR CLAIMING DEDUCTION UNDER SECTION 80- I.T.A. NO. 985/MDS/09 3 IA OF THE ACT ON THE ELECTRICITY PRODUCTION FOR CAP TIVE CONSUMPTION AND ALSO FOR ELECTRICITY TRANSFERRED TO GRID OF TAMIL N ADU ELECTRICITY BOARD. 6. AS PER THE REVENUE, LD. CIT(APPEALS) SHOULD HAVE FOLLOWED DECISION OF THIS TRIBUNAL IN ASSESSEES OWN CASE FO R EARLIER YEARS IN I.T.A. NOS. 110/MDS/2007, 1315/MDS/05, 1316/MDS/05 AND 1317/MDS/05 ALL DATED 31.1.2009. 7. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THIS ISSUE WAS ALSO CONSIDERED BY THE HON'BLE JURISDICTIONAL HIGH COURT IN ASSESSEES OWN CASE IN TC(A) NOS. 896 TO 902 OF 2009 VIDE ORDE R DATED 2.11.2010. LEARNED COUNSEL POINTED OUT THAT THE AP PEALS FILED BY THE ASSESSEE AGAINST THE ORDERS OF THIS TRIBUNAL IN I.T .A. NOS. 110/MDS/2007, 1315/MDS/05, 1316/MDS/05, 1317/MDS/05 AND 2435/MDS/2006 WERE ALLOWED BY THE HON'BLE JURISDICT IONAL HIGH COURT. THEREFORE, ACCORDING TO HIM, THE GROUND RAISED BY T HE REVENUE DID NOT WARRANT ANY CONSIDERATION. LEARNED D.R. FAIRLY ADMITTED THAT THIS ISSUE WAS COVERED IN FAVOUR OF ASSESSEE. 8. WE HAVE PERUSED THE ORDERS AND HEARD THE RIVAL C ONTENTIONS. WE FIND THAT HON'BLE JURISDICTIONAL HIGH COURT HAD ALREADY TAKEN A VIEW THAT ASSESSEE IS ELIGIBLE FOR DEDUCTION UNDER SECTION 80-IA OF THE I.T.A. NO. 985/MDS/09 4 ACT ON ELECTRICITY GENERATED FROM CAPTIVE CONSUMPTI ON AS WELL AS ELECTRICITY TRANSFERRED TO TAMIL NADU ELECTRICITY B OARD. AT PARA 7 OF ITS ORDER, IT WAS CLEARLY HELD BY THE HON'BLE JURISDICT IONAL HIGH COURT THAT EVEN IN RESPECT OF ELECTRICITY GENERATION PLANT EST ABLISHED BY AN ASSESSEE, WHICH ELECTRICITY HAS BEEN USED FOR CAPTI VE CONSUMPTION, THE ASSESSEE WOULD BE ELIGIBLE FOR RELIEF UNDER SEC TION 80-IA OF THE ACTION. THE ISSUE BEING SQUARELY COVERED IN FAVOUR OF ASSESSEE AND THE CASES RELIED ON BY THE REVENUE HAVING BEEN REVE RSED BY THE HON'BLE JURISDICTIONAL HIGH COURT, WE ARE OF THE OP INION THAT THE GROUND RAISED IN THIS REGARD DOES NOT SURVIVE ANY M ORE. GROUND NO.3 STANDS DISMISSED. 9. IN THE RESULT, THE APPEAL FILED BY THE REVENUE S TANDS DISMISSED. THE ORDER WAS PRONOUNCED IN THE COURT ON 13 TH MAY, 2011. SD/- SD/- (GEORGE MATHAN) (ABRAHAM P. G EORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 13 TH MAY, 2011. KRI. COPY TO: APPELLANT/RESPONDENT/CIT(A) - LTU, CHENNAI / CIT-LTU, CHENNAI/D.R./GUARD FILE