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Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI N.R.S. GANESAN & SHRI CHANDRA POOJARI
PER N.R.S. GANESAN, JUDICIAL MEMBER: Both the appeals of the Revenue are directed against the respective orders of the Commissioner of Income Tax (Appeals) – 15, Chennai, in respect of two different assessees. 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.
No one appeared for the assessee in even though notice of hearing was issued to the assessee.
Shri Jayaraghavan, the Ld. Departmental Representative, submitted that the issue arises for consideration is with regard to deduction under Section 80-IA of the Income-tax Act, 1961 (in short 'the Act'). According to the Ld. D.R., the CIT(Appeals) in both the appeals allowed the claim of the assessees by following the judgment of Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd. v. ACIT (340 ITR 477). According to the Ld. D.R., the Revenue has already filed an appeal before the Apex Court and the same is pending for disposal. Therefore, according to the Ld. D.R., assessees.
We heard Shri S. Sridhar, the Ld.counsel for the assessee in also. According to the Ld. counsel, the CIT(Appeals) has followed the binding judgment of jurisdictional High Court, therefore, the CIT(Appeals) has rightly allowed the claim of the assessee by following the judgment of Madras High Court.
We have considered the rival submissions on either side and perused the relevant material available on record. As rightly submitted by the Ld. Departmental Representative and the Ld.counsel for the assessee, the CIT(Appeals), by following the judgment of Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd. (supra), has allowed the claim of the assessees under Section 80-IA of the Act. The only claim of the Revenue is that an appeal is pending before the Apex Court against the judgment of Madras High Court. Recently, the CBDT has issued a circular accepting the judgment of Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd. (supra) and instructed all its officers not to file any appeal against the order of the CIT(Appeals) wherever the 4 & 575/Mds/16 judgment of Madras High Court is followed. The circular of the CBDT is binding on all the officers of the Department and the judgment of Madras High Court is also binding on the officers of the Department and on this Tribunal. Therefore, this Tribunal do not find any reason to interfere with the orders of the lower authority and accordingly the same are confirmed.
In the result, both the appeals filed by the Revenue are dismissed.