ACIT, Virudhunagar v. M/s. Raju Spinning Mills (P) Ltd., Rajapalayam

ITA 1184/CHNY/2011 | 2007-2008
Pronouncement Date: 24-11-2011 | Result: Dismissed

Appeal Details

RSA Number 118421714 RSA 2011
Assessee PAN AABCR3124L
Bench Chennai
Appeal Number ITA 1184/CHNY/2011
Duration Of Justice 5 month(s)
Appellant ACIT, Virudhunagar
Respondent M/s. Raju Spinning Mills (P) Ltd., Rajapalayam
Appeal Type Income Tax Appeal
Pronouncement Date 24-11-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 24-11-2011
Date Of Final Hearing 24-11-2011
Next Hearing Date 24-11-2011
Assessment Year 2007-2008
Appeal Filed On 24-06-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL BENCH D CHENNAI BEFORE SHRI ABRAHAM P. GEORGE ACCOUNTANT MEMBER AN D SHRI GEORGE MATHAN JUDICIAL MEMBER .. I.T.A. NO. 1184/MDS/2011 ASSESSMENT YEAR : 2007-08 THE ASSISTANT COMMISSIONER OF INCOME-TAX CIRCLE-I VIRUDHUNAGAR. V. M/S. SRI RAJU SPINNING MILLS (P) LTD. 1110-B COTTON MARKET RAJAPALAYAM-626117. [PAN : AABCR3124L] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P. MADHANA SEKARAN JCIT RESPONDENT BY : SHRI D. PRAVEEN ADVOCATE DATE OF HEARING : 24-11-2011 DATE OF PRONOUNCEMENT : 24-11-2011 O R D E R PER GEORGE MATHAN JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED CIT(APPEALS)-II MADURAI IN ITA NO. 135/2009-10 DAT ED 28-03-2011 FOR THE ASSESSMENT YEAR 2007-08. 2. SHRI P. MADHANA SEKARAN JCIT REPRESENTED ON BEH ALF OF THE REVENUE AND SHRI D. PRAVEEN ADVOCATE REPRESENTED ON BEHALF OF THE ASSESSEE. I.T.A. NO. 1184/MDS/2011 2 3. IN THE REVENUES APPEAL THE REVENUE HAS RAISED THE FOLLOWING GROUNDS: 1. THE ORDER OF THE CIT(A) IS CONTRARY TO THE FACT S AND CIRCUMSTANCES OF THE CASE. 2. THE CIT(A) OUGHT TO HAVE NOTED THAT THE COST OF TRANSFORMER AND CIVIL WORKS DONE IN CONNECTION WITH WIND MILLS ARE INDIVIDUAL ITEMS AND DOES NOT FORM PART OF WIND MILL. THE ELI GIBLE RATE OF DEPRECIATION ON THOSE ITEMS IS ONLY AT 15% AND NOT AT THE HIGHER RATE OF DEPRECIATION AS ELIGIBLE TO WIND MILL. 3. THE ITAT DECISION IN THE CASE OF ASIAN HANDLOOM VS. DEPUTY COMMISSIONER OF INCOME-TAX IN ITA NO. 2291/MDS/2008 FOLLOWED BY THE CIT(A) HAS NOT BECOME FINAL. 4. FOR THESE AND SUCH OTHER GROUNDS THAT MAY BE AD DUCED AT THE TIME OF HEARING THE ORDER OF THE CIT(A)_ MAY BE REV ERSED TO THAT EXTENT AND THAT OF THE ASSESSING OFFICER MAY BE RES TORED. 4. IT WAS SUBMITTED BY THE LEARNED DR THAT THE ISSU E IN THE APPEAL WAS AGAINST THE ACTION OF THE LEARNED CIT(A) IN HOLDING THAT TH E TRANSFORMER AND CIVIL WORKS DONE IN CONNECTION WITH WINDMILLS WERE INDIVIDUAL I TEMS AND DID NOT FORM PART OF WINDMILL AND CONSEQUENTLY THE HIGHER RATE OF DEPREC IATION WAS NOT LIABLE TO BE GRANTED TO THE ASSESSEE. IT WAS THE SUBMISSION THA T THE ORDER OF THE TRIBUNAL IN THE CASE OF M/S. ASIAN HANDLOOM RELIED UPON BY THE LEA RNED CIT(A) HAS NOT BECOME FINAL. HE VEHEMENTLY SUPPORTED THE ORDER OF THE AS SESSING OFFICER. 5. IN REPLY THE LEARNED AUTHORISED REPRESENTATIVE VEHEMENTLY SUPPORTED THE ORDER OF THE LEARNED CIT(A). I.T.A. NO. 1184/MDS/2011 3 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. IT IS NOTICED THAT THE ISSUE IN THIS APPEAL IS SQUARELY COVERED BY THE DECISION OF THE C O-ORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF M/S. ASIAN HANDLOOM V. DCIT IN ITA N O. 2291/MDS/2008 DATED 20- 11-2009. THIS ORDER STILL HOLDS THE FIELD. JUST B ECAUSE AN APPEAL HAS BEEN FILED BY THE REVENUE IT WOULD NOT MEAN THAT THE ORDER OF THE LEARNED CIT(A) IS ERRONEOUS AND IS TO BE REVERSED. IN THE CIRCUMSTANCES AS IT IS NOTICED THAT THE LEARNED CIT(A) HAS ONLY FOLLOWED THE DECISION OF THE CO-ORDINATE B ENCH OF THIS TRIBUNAL IN THE CASE OF M/S. ASIAN HANDLOOM REFERRED TO SUPRA WE ARE O F THE VIEW THAT THE FINDING OF THE LEARNED CIT(A) ON THIS ISSUE IS ON A RIGHT FOOT ING AND DOES NOT CALL FOR ANY INTERFERENCE. IN THE CIRCUMSTANCES THE APPEAL OF THE REVENUE IS DISMISSED. 6. THE ORDER WAS PRONOUNCED IN THE COURT ON 24/11/2 011. SD/- SD/- (ABRAHAM P. GEORGE) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI DATED THE 24 TH NOVEMBER 2011. H. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE