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Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: SHRI N.R.S. GANESAN & SHRI A. MOHAN ALANKAMONY
आदेश /O R D E R
PER N.R.S. GANESAN, JUDICIAL MEMBER:
These appeals of the Revenue in respect of two different assessees are directed against the respective orders of the Commissioner of Income Tax (Appeals) and pertain to assessment year 2011-12 and 2012-13 respectively. Since common issue arises for consideration in these appeals, we heard both the appeals together and disposing of the same by this common order.
Dr. B. Nischal, the Ld. Departmental Representative, submitted that the only issue arises for consideration is with regard to deduction claimed by the assessee under Section 80-IA of the Income-tax Act, 1961 (in short 'the Act'). The CIT(Appeals) allowed the claim of the assessees on the basis of the judgment of the Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd. v.
ACIT (2010) (231 CTR 368). The only objection of the Revenue is that it has already filed a Special Leave Petition before the Supreme Court against the judgment of Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd. (supra).
We have heard Shri G. Baskar, the Ld.counsel for the assessee also. The assessees claimed deduction under Section 80-IA of the Act. However, the Assessing Officer rejected the same.
The CIT(Appeals), by following the judgment of Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd. (supra), allowed the claim of the assessees. It is not the case of the Revenue that the judgment of Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd. (supra) is not applicable to the case before us. The only objection of the Ld. D.R. is that an SLP is pending before the Supreme Court. This Tribunal is of the considered opinion that mere pendency of SLP before the Supreme Court cannot be a reason not to follow the judgment of the jurisdictional High Court. In other words, the judgment of the Madras High Court is not only binding on this Tribunal but also binding on both the parties before this Tribunal. Therefore, the CIT(Appeals) has rightly followed the judgment of the jurisdictional High Court in Velayudhaswamy Spinning Mills (P) Ltd. (supra). Therefore, this Tribunal do not find any reason to interfere with the orders of the CIT(Appeals) and accordingly, the same are confirmed.
In the result, both the appeals filed by the Revenue are dismissed.
Order pronounced on 1st January, 2016 at Chennai.