DCIT, COIMBATORE vs. SRI RANGANATHAR VALVES P LTD, COIMBATORE

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ITA 1734/CHNY/2015Status: DisposedITAT Chennai08 January 2016AY 2012-134 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the pendency of a Special Leave Petition before the Apex Court is not a reason to deviate from a binding High Court judgment. The CIT(A) rightly followed the jurisdictional High Court's decision.

What were the facts?

The assessee claimed deduction under Section 80-IA for windmills. The Assessing Officer disallowed the claim by notionally setting off brought forward losses. The CIT(A) allowed the claim following a High Court judgment.

What were the issues?

Whether the assessee is eligible for deduction under Section 80-IA for windmills, and if a pending SLP can override a binding High Court judgment.

Which sections of the Income-tax Act were involved?

Section 80-IA,Section 143(3),Section 250

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI

Before: SHRI CHANDRA POOJARI & SHRI G. PAVAN KUMAR

For Respondent: Shri. S. Sridhar, Advocate

आदेश / O R D E R PER G. PAVAN KUMAR, JUDICIAL MEMBER:

1.

The appeal filed by the Revenue is directed against order of the Commissioner of Income-tax (Appeals)-I, Coimbatore in ITA

ITA No.1734/Mds/2014. :- 2 -:

No.315/14-15, dt 29.05.2014 for the assessment year 2012-2013 passed u/s.143(3) and 250 of the Income Tax Act, 1961.

The only issue arises for consideration is with regard to 2. deduction claimed by the assessee under Section 80-IA of the Income Tax Act, 1961 (in short ‘’the Act’’) in respect of windmills.

The brief facts of the case are that the assessee company 3. filed return of income for the assessment year 2012-13 on 29.09.2012 disclosing Total income of �10,29,69,030/-. The case was selected for scrutiny and the assessment was completed by disallowing �2,23,50,682/-under section 80IA of the Act by notionally bringing in and setting off the brought forward loss for determining the profits qualifying for deduction u/s.80IA from the initial assessment year being the year relevant to the financial year in which operations relating to the windmill infrastructure commenced. Aggrieved, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals).

4.

On appeal, the Commissioner of Income Tax (Appeals) observed that the issue is covered by the jurisdictional High Court order in the case of CIT vs. Velayuthasamy Spinning Mills 231 CTR 368

ITA No.1734/Mds/2014. :- 3 -: and allowed the claim of the assessee. Against this, the Revenue is in appeal before us.

5.

We heard the rival submissions of both the parties, perused the material on record and also judicial decisions cited. The only issue arises for consideration is with regard to deduction claimed by the assessee under Section 80-IA of the Act in respect of windmills. The Assessing Officer rejected the claim of the assessee on the ground that the Department has filed a Special Leave Petition against the judgment of Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd vs. ACIT 231 CTR 368. However, the Commissioner of Income Tax (Appeals) by following the judgment of Madras High Court allowed the claim of the assessee.

Now the only contention of the Department before this 6.

Tribunal is that the Revenue has not accepted the judgment of Madras High Court and an appeal has already been filed along with Special Leave Petition and the same is pending before the Apex Court. This Tribunal is of the considered opinion that mere pendency of Special Leave Petition before the Apex Court cannot be a reason to take a different view. The judgment of Madras High Court is binding on all the authorities in the State of Tamil Nadu and Union Territory of Pondicherry. Therefore, the Commissioner of Income Tax (Appeals)

ITA No.1734/Mds/2014. :- 4 -: has rightly allowed the claim of the assessee by following the binding judgment of Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd (supra). Therefore, this Tribunal do not find any infirmity in the order of the Commissioner of Income Tax (Appeals).

In the result, the appeal of the Revenue are dismissed. 7.

Order pronounced on Wednesday, the 13th day of January, 2016, at Chennai.

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