DCIT, COIMBATORE vs. INDO SHELL CAST PVT. LTD., COIMBATORE

This appeal of the Revenue is directed against the order of the Commissioner of Income Tax (Appeals)-1, Coimbatore, dated 09.03.2015 and pertains to assessment year 2009-10. The only the assessee under Section 80-IA of the Income-tax Act, 1961 (in short 'the Act').

We heard Shri A.V. Sreekanth, the Ld. Departmental Representative and Shri G. Baskar, the Ld.counsel for the assessee. The assessee claimed deduction under Section 80-IA of the Act in respect of two windmills, on the basis of the judgment of Madras High Court in the case of Velayudhaswamy Spinning Mills (P) Ltd. v. ACIT (2012) 340 ITR 477. However, the Assessing Officer disallowed the claim of the assessee on the ground that a Special Leave Petition was filed before the Apex Court against the judgment of the Madras High Court in Velayudhaswamy Spinning Mills (supra). However, on appeal by the assessee, the CIT(Appeals) allowed the claim of the assessee by following the judgment of the Madras High Court in Velayudhaswamy Spinning Mills (supra). It is not the case of the Revenue that the operation of the judgment of the Madras High Court is stayed by the Apex Court.

In the result, the appeal of the Revenue is dismissed.