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Income Tax Appellate Tribunal, “C” BENCH : BANGALORE
Before: SHRI SUNIL KUMAR YADAV & SHRI INTURI RAMA RAO
Per Sunil Kumar Yadav, Judicial Member These appeals preferred by the Revenue were heard together and are disposed of by this consolidated order.
2. This appeal is preferred by the revenue against the order of CIT(A) inter alia on the following grounds:- “1. The order of the Ld. CIT(A) is contrary to the facts and circumstances of the case and hence not sustainable.
2. Whether the ld. CIT(A) is right on giving relief to the assessee on the issue of disallowances of deductions u/s 10A relying on the decision of the Hon’ble High Court in the case of CIT vs. Tata Elxsi Ltd, which was not accepted by the department and an SLP filed before the Apex Court on the said issue is pending for adjucation.
3. Whether the CIT(A) is right on the issue of adjustment of business losses from SEZ unit unabsorbed depreciation loss against the profits of the other unit, since the order on which the CIT(A) has relied i.e. the judgement of Hon’ble High Court in the case of CIT vs. Yokogawa India Ltd., (341 ITR 385), which itself is pending before the Supreme Court for adjucation. 4. For these and other grounds that may be urged at the time of hearing, it is prayed that the order of the CIT(A) in so far as it relates to the above grounds may be reversed and that of the Assessing Officer may be restored.”
3. Ground no. 1 is general in nature.
4. Apropos ground no. 2, it is pointed out that the impugned issue is squarely covered by the judgment of Hon’ble jurisdictional High Court in the case of CIT vs. Tata Elxsi Ltd. (349 ITR 98)(Karn). Since the CIT(A) has disposed of the issue following the judgment of the Hon’ble jurisdictional High Court and in view of the Hon’ble Supreme Court dismissing the SLP filed by the department against the judgment of the Hon’ble jurisdictional High Court, we find no infirmity therein.
4. Apropos ground no. 3, it is also noticed that CIT(A) has disposed of this issue following the judgment of Hon’ble jurisdictional High Court in the case of CIT vs. Yokogawa India Ltd. (341 ITR 385).
Now this judgment has been approved by the Hon’ble Supreme Court.
Therefore, we find no infirmity in the order of CIT(A). Accordingly, we confirm the same.
The revenue has preferred this appeal against order of CIT(A) inter alia on the following grounds.
“1. The order of the Ld. CIT(A) is contrary to the facts and circumstances of the case and hence not sustainable.
Whether the ld. CIT(A) is right on giving relief to the assessee on the issue of disallowances of deductions u/s 10A relying on the decision of the Hon’ble High Court in the case of CIT vs. Tata Elxsi Ltd, which was not accepted by the department and an SLP filed before the Apex Court on the said issue is pending for adjucation.
For these and other grounds that may be urged at the time of hearing, it is prayed that the order of the CIT(A) in so far as it relates to the above grounds may be reversed and that of the Assessing Officer may be restored.”
The CIT(A) has decided the impugned issue by following judgment of Hon’ble jurisdictional High Court in the case of CIT vs. Tata Elxsi Ltd. (349 ITR 98) which was confirmed by the Hon’ble Supreme Court. Therefore, no interference is called for in the order of CIT(A).
In the result, both the appeals by the revenue are dismissed.
Pronounced in the open court on this 22nd day of February, 2017.