Velayudhaswamy Spinning Mills (P) Ltd. v. ACIT

340 ITR 477High Court2012#424 most cited

What is Velayudhaswamy Spinning Mills (P) Ltd. v. ACIT authority for?

If unabsorbed depreciation or losses from years prior to the initial assessment year for Section 80-IA claim have already been set off against other income, they cannot be notionally carried forward again to reduce the profits of the eligible unit for computing deduction under Section 80-IA. The notional carry forward provision under Section 80-IA(5) applies only to unabsorbed depreciation or losses that have not yet been absorbed.

213

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2015 to 2026.

Also referred to as

Velayudhaswamy Spinning Mills · Section 80-IA · unabsorbed depreciation · unabsorbed losses · notional carry forward · already set off · eligible business deduction · Section 80-IA(5) · initial assessment year · 340 ITR 477

Also reported as

231 CTR 36838 DTR 57

Sections most often in play

Section 143(3)Section 35DSection 40(a)(i)Section 80-IASection 80HHCSection 35(2AB)Section 147Section 148

Issues it is cited on

section 80ia(5)initial assessment yeareligible businesssection 80ia(4)deduction u/s 80iaunabsorbed depreciationsection 80iasection 80igross total incomedisallowance under section 14acapital expendituresection 80

Judgments citing Velayudhaswamy Spinning Mills (P) Ltd. v. ACIT

M/S. Neyveli Lignite Corporationlimited, Neyveli vs. ACIT, Chennai

In the result, the Revenue’s appeals in ITA Nos

ITA 177/CHNY/2009[2001-02]Status: DisposedITAT Chennai26 Jun 2015AY 2001-02

Bench: Shri N.R.S. Ganesan & Shri Chandra Poojari] आयकर अपील सं./I.T.A.Nos. 374/2004, 529/2006 & 222/2009 "नधा"रण वष" /Assessment Years : 2001-02, 2002-03 & 2000-01. The Assistant Commissioner Vs. M/S. Neyveli Lignite Of Income Tax, Corporation Ltd, Company Circle Iv(4), Neyveli 607 801. Chennai

For Respondent: Shri. E.S. Nagendra Prasad
Section 31Section 37

…आयकर अपील"य अ"धकरण, ए "यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH : CHENNAI "ी एन.आर.एस. गणेशन, "या"यक सद"य एवं "ी चं" पूजार", लेखा सद"य के सम" । [BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER] आयकर अपील सं./I.T.A.Nos. 374/2004, 529/2006 & 222/2009 "नधा"रण वष" /Assessment years : 2001-02, 2002-03 & 2000-01. The Assistant Commissioner Vs. M/s. Neyveli Lignite of Income Tax, Corporation Ltd, Company Circle IV(4), Neyveli 607 801. Chennai [PAN AAACN 1121C] ITA Nos. 782/2005 & 177/2009. (Assessment years: Nil, 2001-2002) M/s. Neyveli Lignite Corporat…

ACIT, Chennai vs. M/S. Neyveli Lignite Corporation Limited, Neyveli

In the result, the Revenue’s appeals in ITA Nos

ITA 529/CHNY/2006[2002-03]Status: DisposedITAT Chennai26 Jun 2015AY 2002-03

Bench: Shri N.R.S. Ganesan & Shri Chandra Poojari] आयकर अपील सं./I.T.A.Nos. 374/2004, 529/2006 & 222/2009 "नधा"रण वष" /Assessment Years : 2001-02, 2002-03 & 2000-01. The Assistant Commissioner Vs. M/S. Neyveli Lignite Of Income Tax, Corporation Ltd, Company Circle Iv(4), Neyveli 607 801. Chennai

For Respondent: Shri. E.S. Nagendra Prasad
Section 31Section 37

…आयकर अपील"य अ"धकरण, ए "यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH : CHENNAI "ी एन.आर.एस. गणेशन, "या"यक सद"य एवं "ी चं" पूजार", लेखा सद"य के सम" । [BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER] आयकर अपील सं./I.T.A.Nos. 374/2004, 529/2006 & 222/2009 "नधा"रण वष" /Assessment years : 2001-02, 2002-03 & 2000-01. The Assistant Commissioner Vs. M/s. Neyveli Lignite of Income Tax, Corporation Ltd, Company Circle IV(4), Neyveli 607 801. Chennai [PAN AAACN 1121C] ITA Nos. 782/2005 & 177/2009. (Assessment years: Nil, 2001-2002) M/s. Neyveli Lignite Corporat…

M/S. Neyveli Lignite Corporation Limited, Neyveli vs. ITO, Cuddalore

In the result, the Revenue’s appeals in ITA Nos

ITA 782/CHNY/2005[-]Status: DisposedITAT Chennai26 Jun 2015

Bench: Shri N.R.S. Ganesan & Shri Chandra Poojari] आयकर अपील सं./I.T.A.Nos. 374/2004, 529/2006 & 222/2009 "नधा"रण वष" /Assessment Years : 2001-02, 2002-03 & 2000-01. The Assistant Commissioner Vs. M/S. Neyveli Lignite Of Income Tax, Corporation Ltd, Company Circle Iv(4), Neyveli 607 801. Chennai

For Respondent: Shri. E.S. Nagendra Prasad
Section 31Section 37

…आयकर अपील"य अ"धकरण, ए "यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH : CHENNAI "ी एन.आर.एस. गणेशन, "या"यक सद"य एवं "ी चं" पूजार", लेखा सद"य के सम" । [BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER] आयकर अपील सं./I.T.A.Nos. 374/2004, 529/2006 & 222/2009 "नधा"रण वष" /Assessment years : 2001-02, 2002-03 & 2000-01. The Assistant Commissioner Vs. M/s. Neyveli Lignite of Income Tax, Corporation Ltd, Company Circle IV(4), Neyveli 607 801. Chennai [PAN AAACN 1121C] ITA Nos. 782/2005 & 177/2009. (Assessment years: Nil, 2001-2002) M/s. Neyveli Lignite Corporat…

ACIT, Chennai vs. M/S. Neyveli Lignite Corporation Limited, Neyveli

In the result, the Revenue’s appeals in ITA Nos

ITA 374/CHNY/2004[2001-02]Status: DisposedITAT Chennai26 Jun 2015AY 2001-02

Bench: Shri N.R.S. Ganesan & Shri Chandra Poojari] आयकर अपील सं./I.T.A.Nos. 374/2004, 529/2006 & 222/2009 "नधा"रण वष" /Assessment Years : 2001-02, 2002-03 & 2000-01. The Assistant Commissioner Vs. M/S. Neyveli Lignite Of Income Tax, Corporation Ltd, Company Circle Iv(4), Neyveli 607 801. Chennai

For Respondent: Shri. E.S. Nagendra Prasad
Section 31Section 37

…आयकर अपील"य अ"धकरण, ए "यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH : CHENNAI "ी एन.आर.एस. गणेशन, "या"यक सद"य एवं "ी चं" पूजार", लेखा सद"य के सम" । [BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER] आयकर अपील सं./I.T.A.Nos. 374/2004, 529/2006 & 222/2009 "नधा"रण वष" /Assessment years : 2001-02, 2002-03 & 2000-01. The Assistant Commissioner Vs. M/s. Neyveli Lignite of Income Tax, Corporation Ltd, Company Circle IV(4), Neyveli 607 801. Chennai [PAN AAACN 1121C] ITA Nos. 782/2005 & 177/2009. (Assessment years: Nil, 2001-2002) M/s. Neyveli Lignite Corporat…

ACIT, Chennai vs. M.M.Forgings Ltd., Chennai

In the result, the appeal of the Revenue in ITA

ITA 2679/CHNY/2014[2011-12]Status: DisposedITAT Chennai19 Jun 2015AY 2011-12

Bench: Shri Chandra Poojari & Shri Challa Nagendra Prasadआयकर अपील सं./ I.T.A. No.2679/Mds/2014 ("नधा"रण वष" / Assessment Year : 2011 -2012)

For Appellant: Shri. Krishnamurthy, CITFor Respondent: Shri. Philip George, Advocate
Section 143(3)Section 40Section 801A(4)Section 80I

…ved, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals). 4. The Commissioner of Income Tax (Appeals) placing reliance on the judgment of the jurisdictional high court in the case of Velayudhaswamy Spinning Mills (P) Ltd vs. ACIT 340 ITR 477, wherein held observed that ‘……………….From a reading of Se. 80IA(5), it is clear that the eligible business were the only source of income, during the previous year relevant to the initial assessment year and every subsequent assessment years. When the assessment exercises the option, the only losses of the years beginning from initial assessment…

DCIT, Coimbatore vs. Indo Shell Cast Pvt. Ltd., Coimbatore

Appeal is dismissed

ITA 457/CHNY/2015[2010-11]Status: DisposedITAT Chennai07 Apr 2015AY 2010-11

Bench: Shri Chandra Poojari & Shri V. Durga Rao

For Appellant: Dr. Nischal, JCITFor Respondent: Shri G. Baskar, Advocate
Section 80I

…profit derived from windmills. 3. After hearing both the parties, we find that the issue in dispute is squarely covered in favour of the assessee by the judgment of the Jurisdictional High Court in the case of Velayudhaswamy Spinning Mills (P) Ltd. vs. ACIT (340 ITR 477), wherein it was held that the profit derived from windmills is entitled for deduction under sec.80IA of the Act. Respectfully following the above judgment of the Jurisdictional High Court, we are inclined to confirm the order of the Commissioner of Income- tax(Appeals) on this issue. Accordingly, the Revenue’s appeal is dismissed. Order pronoun…

DCIT, Virudhunagar vs. Vtm Ltd., Virudhunagar

Appeal is dismissed

ITA 2832/CHNY/2014[2010-11]Status: DisposedITAT Chennai27 Feb 2015AY 2010-11

Bench: Shri A.Mohan Alankamony & Shri S.S. Godara

For Appellant: Shri. S. Das Gupta, IRS, JCITFor Respondent: Shri. R. Srinivasan, Advocate
Section 143(3)Section 80I

…m were installed in assessment year 2005-06. The third one in assessment year 2006-2007. It had chosen the impugned assessment year as ‘initial assessment year’ for claiming the said deduction. The case law of M/s. Velayutha Swamy Spinning Mills vs. ACIT, 340 ITR 477 was also quoted. The Assessing Officer in assessment order 22.03.2013 referred to section 80IA (5) of the Act and observed that wind mills treated as separate units did not give rise to any positive income after setting off unabsorbed depreciation from the years of installation. He observed that the Revenue’s special leave petition is pending…

DCIT, Tiruppur vs. Sri Vignesh Yarns P Ltd., Tiruppur

Appeals are dismissed

ITA 1218/CHNY/2014[2010-11]Status: DisposedITAT Chennai04 Feb 2015AY 2010-11

Bench: Shri B.R. Baskaran & Shri S. S. Godara] आयकर अपील सं./I.T.A.No.1217/Mds/2014 "नधा"रण वष" /Assessment Year : 2009-10

For Appellant: Shri Guru Bhashyam, JCITFor Respondent: Shri N. Vijayakumar, CA
Section 143(3)Section 80ISection 80l

…ssessee’s income from the initial assessment year i.e the year of commencement of business. The assessee pleaded that this meant to be the first year of claiming section 80IA deduction as per case law of Velayudhaswamy Spinning Mills P. Ltd vs ACIT [2012] 340 ITR 477(Mad). The Assessing Officer observed in assessment order dated 25.12.2011 that Revenue’s special leave petition against the aforesaid decision is pending in the apex court and invoked section 80IA to disallow/add the amount in question of `79,66,562/-. The assessee preferred an appeal. The CIT(A) has followed 6. the aforesaid case law and holds…

DCIT, Tiruppur vs. India Dyeing Mills Pvt. Ltd., Tiruppur

Appeals are dismissed

ITA 1217/CHNY/2014[2009-10]Status: DisposedITAT Chennai04 Feb 2015AY 2009-10

Bench: Shri B.R. Baskaran & Shri S. S. Godara] आयकर अपील सं./I.T.A.No.1217/Mds/2014 "नधा"रण वष" /Assessment Year : 2009-10

For Appellant: Shri Guru Bhashyam, JCITFor Respondent: Shri N. Vijayakumar, CA
Section 143(3)Section 80ISection 80l

…ssessee’s income from the initial assessment year i.e the year of commencement of business. The assessee pleaded that this meant to be the first year of claiming section 80IA deduction as per case law of Velayudhaswamy Spinning Mills P. Ltd vs ACIT [2012] 340 ITR 477(Mad). The Assessing Officer observed in assessment order dated 25.12.2011 that Revenue’s special leave petition against the aforesaid decision is pending in the apex court and invoked section 80IA to disallow/add the amount in question of `79,66,562/-. The assessee preferred an appeal. The CIT(A) has followed 6. the aforesaid case law and holds…

ACIT, Coimbatore vs. K.Rajinikanth, Coimbatore

In the result, the appeal filed by the Revenue is dismissed

ITA 2495/CHNY/2014[2010-11]Status: DisposedITAT Chennai19 Jan 2015AY 2010-11

Bench: Shri B.R. Baskaran & Shri Vikas Awasthyआयकर अपील सं./Ita No. 2495/Mds/2014 "नधा"रण वष" /Assessment Year : 2010-11 The Assistant Commissioner Of Shri K. Rajinikanth, Income Tax, V. 603, C-Block, Pioneer Complex, Circle Iii, 1075, Avinashi Road, 63, Race Course Road, Coimbatore – 641 018. Coimbatore – 641 018. Pan : Addpr 3075 L (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri A.V. Sreekanth, JCITFor Respondent: Shri M. Baskaran, CA
Section 80

…आयकर अपील"य अ"धकरण, ‘सी’ "यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL “ C” BENCH, CHENNAI "ी बी.आर. बा"करन, लेखा सद"य एवं "ी "वकास अव"थी, "या"यक सद"य केसम" BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER आयकर अपील सं./ITA No. 2495/Mds/2014 "नधा"रण वष" /Assessment Year : 2010-11 The Assistant Commissioner of Shri K. Rajinikanth, Income Tax, v. 603, C-Block, Pioneer Complex, Circle III, 1075, Avinashi Road, 63, Race Course Road, Coimbatore – 641 018. Coimbatore – 641 018. PAN : ADDPR 3075 L (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant by : Shri A…

ACIT, Coimbatore vs. Rangamma Steels and Malleables, Coimbatore

In the result, the appeal filed by the Revenue is dismissed

ITA 2494/CHNY/2014[2010-11]Status: DisposedITAT Chennai19 Jan 2015AY 2010-11

Bench: Shri B.R. Baskaran & Shri Vikas Awasthyआयकर अपील सं./Ita No. 2494/Mds/2014 "नधा"रण वष" /Assessment Year : 2010-11

For Appellant: Shri A.V. Sreekanth, JCITFor Respondent: Shri M. Baskaran, CA
Section 80

…आयकर अपील"य अ"धकरण, ‘सी’ "यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL “ C” BENCH, CHENNAI "ी बी.आर. बा"करन, लेखा सद"य एवं "ी "वकास अव"थी, "या"यक सद"य केसम" BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER आयकर अपील सं./ITA No. 2494/Mds/2014 "नधा"रण वष" /Assessment Year : 2010-11 The Assistant Commissioner of M/s Rangamma Steels and Income Tax, v. Malleables, Circle III, 603, C-Block, Pioneer Complex, 63, Race Course Road, 1075, Avinashi Road, Coimbatore – 641 018. Coimbatore – 641 018. PAN : AADFR 3050 J (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appe…

ACIT, Coimbatore vs. Pioneer Woven Sacks Pvt. Ltd., Udamalpet

In the result, the appeal filed by the Revenue is dismissed

ITA 1687/CHNY/2014[2010-11]Status: DisposedITAT Chennai19 Jan 2015AY 2010-11

Bench: Shri B.R. Baskaran & Shri Vikas Awasthyआयकर अपील सं./Ita No. 1687/Mds/2014 "नधा"रण वष" /Assessment Year : 2010-11

For Appellant: Shri P. Radhakrishnan, JCITFor Respondent: Shri G. Baskar, Advocate
Section 80

…आयकर अपील"य अ"धकरण, ‘ए’ "यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHENNAI "ी बी.आर. बा"करन, लेखा सद"य एवं "ी "वकास अव"थी, "या"यक सद"य केसम" BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER आयकर अपील सं./ITA No. 1687/Mds/2014 "नधा"रण वष" /Assessment Year : 2010-11 The Assistant Commissioner of M/s Pioneer Woven Sacks Income Tax, v. Pvt. Ltd., Salary Circle I, S.F. No.34, Sakthi Co-Operative Coimbatore. Industrial Estate, Udumalpet – 642 128. PAN : AABCP 8788 J (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant by : Shri P. Radhakrishna…

DCIT, Coimbatore vs. Premier Spinning & Weaving Mills Pvt Ltd., Coimbatore

In the result, the appeals of the Revenue are dismissed

ITA 1908/CHNY/2015[2012-13]Status: DisposedITAT Chennai06 Jan 2015AY 2012-13

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri. A.B. Koli, IRS, JCITFor Respondent: Shri. R. Vijayaraghavan, Advocate
Section 80

…business carried on by the assessee. The Assessing Officer rejected the claim of the assessees 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 assessees. 4. Now the only contention of the Department before this 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 a…