DCIT, TIRUPPUR vs. KESHARINANDAN KNIT FABRCIES (P) LTD., TIRUPPUR

Both the appeals of the Revenue are directed against the respective orders of the Commissioner of Income Tax (Appeals) – 3, Coimbatore, dated 27.11.2015 and pertain to assessment years 2012-13 and 2010-11. Since common issue arises for consideration in both the appeals, we heard both the appeals together and disposing of the same by this common order.

There was a delay of 81 days in filing these appeals by the Revenue. The Revenue has filed a petition for condonation of delay. We have heard the Ld. Departmental Representative and the Ld. representative for the assessee. We find that there was sufficient cause for not filing the appeals before the stipulated time.

We have heard Shri A.V. Sreekanth, the Ld. Departmental Representative and Shri N. Vijay Kumar, the Ld. representative for the assessee. The claim of deduction under Section 80-IA of the Income-tax Act, 1961 (in short 'the Act') was rejected by the CIT(Appeals) on the ground that the Revenue filed the appeals before the Apex Court against the judgment of Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd. v. ACIT (340 ITR 477). However, the CIT(Appeals) found that the judgment of Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd. (supra) is binding on the Assessing Officer and accordingly, he allowed the claim of the assessee. This Tribunal is of the considered opinion that when the judgment of Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd. (supra) is binding on both the authorities below, a mere pendancy of SLP before the Apex Court may not be a reason for not following the judgment of Madras High Court. Therefore, this Tribunal is of the considered opinion that the CIT(Appeals) has rightly allowed the claim of the assessee by placing his reliance on the judgment of Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd. (supra). This Tribunal do not find any reason to interfere with the orders of the lower authority and accordingly both the orders of the CIT(Appeals) are confirmed.