DCIT, TIRUPPUR vs. M/S. ANUGRAHA FASHION MILLS PVT. LTD., TIRUPPUR

PDF · subscribers
ITA 2454/CHNY/2016Status: DisposedITAT Chennai19 January 2017AY 2012-133 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal agreed with the CIT(A)'s view, following the jurisdictional High Court's judgment. It held that unabsorbed depreciation prior to the initial year of claiming deduction under Section 80IA need not be notionally set off.

What were the facts?

The Revenue appealed against the CIT(A)'s order allowing deduction under Section 80IA. The CIT(A) held that unabsorbed depreciation from years prior to the 80IA claim should not be notionally carried forward and set off before granting the deduction.

What were the issues?

Whether unabsorbed depreciation of earlier years prior to the initial year of claiming deduction under Section 80IA should be notionally carried forward and set off before granting such deduction.

Which sections of the Income-tax Act were involved?

Section 80IA

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI [CAMP: COIMBATORE]

Before: SHRI N.R.S. GANESAN & SHRI ABRAHAM P. GEORGE

For Respondent: Shri S. Dhananjayan, CA
Hearing: 19.01.2017Pronounced: 19.01.2017

आदेश /O R D E R

PER BENCH:

1.

This appeal filed by the Revenue is directed against the order of the ld. Commissioner of Income Tax (Appeals)-3, Coimbatore granting the claim for deduction u/s.80IA of the Income Tax Act, 1961 (in short 'the Act').

2.

Ld. Commissioner of Income Tax (Appeals) had taken a view that unabsorbed depreciation of earlier years prior to the initial year of preferring a claim under deduction u/s.80IA of the Act was not to be notionally carried forward and set off before granting such deduction.

The ld. Commissioner of Income Tax (Appeals) had followed the judgment of Hon’ble Jurisdictional High Court in the case of M/s. Sri Valayuthasamy Spinning Mills Ltd vs. ACIT 340 ITR 477. The contention of the Revenue before us is that the assessee had claimed deduction u/s 80IA(4) of the Act without setting off of the depreciation of the said units for the earlier years. We find that the issue raised in this appeal is squarely covered by the judgment of the Jurisdictional High Court in the case of Velayudhaswamy Spinning Mills P. Ltd (supra). Once earlier losses had been set off against other income, there is no question of notional adjustment of such losses against the profits of a given year as per the above judgment, while working out deduction claimed u/s 80IA of the Act. Since the CIT(Appeals) had followed the judgment of the Madras High Court, we do not find any reason to interfere with the order of the CIT(Appeals).

3.

In the result, the appeal filed by the Revenue is dismissed.

Order pronounced in the open court on 19th January, 2017 at Coimbatore.

More judgments on Section 80IA

All 1,796 judgments and leading authorities on Section 80IA →

Recent GST High Court judgments

Search GST case law →