DCIT, Tiruppur v. Sueera Alloys Global P Ltd., Avanashi

ITA 1980/CHNY/2016 | 2013-2014
Pronouncement Date: 30-09-2016 | Result: Allowed

Appeal Details

RSA Number 198021714 RSA 2016
Assessee PAN AAGCS6735B
Bench Chennai
Appeal Number ITA 1980/CHNY/2016
Duration Of Justice 3 month(s)
Appellant DCIT, Tiruppur
Respondent Sueera Alloys Global P Ltd., Avanashi
Appeal Type Income Tax Appeal
Pronouncement Date 30-09-2016
Appeal Filed By Department
Order Result Allowed
Bench Allotted B
Tribunal Order Date 30-09-2016
Assessment Year 2013-2014
Appeal Filed On 30-06-2016
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI . . BEFORE SHRI ABRAHAM P. GEORGE ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR JUDICIAL MEMBER ./I.T.A. NO. 1980/MDS/2016 / ASSESSMENT YEAR : 2013-2014 THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE -1 TIRUPUR VS. M/S. SUEERA ALLOYS GLOBAL P. LTD NO.315/2 SEEMBAYANALLUR VILLAGE KANDAMPALAYAM AVINASHI 641 654. COIMBATORE [PAN AAGCS 6735B] ! ' # / APPELLANT BY : SHRI. SUPRIYO PAL JCIT. $% ! ' # /RESPONDENT BY : SHRI. M. NARAYANAN ADDL. CIT(RETD) ./I.T.A. NO. 1982/MDS/2016 / ASSESSMENT YEAR : 2013-2014 THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE -1 TIRUPUR VS. M/S. KESHARINANDAN KNIT FABRICS (P) LTD 174/175 LINGAI GOUNDER STREET TIRUPUR 641 602. [PAN AAACK 8625Q] ( / APPELLANT) ( /RESPONDENT) ! ' # / APPELLANT BY : SHRI. SUPRIYO PAL JCIT $% ! ' # /RESPONDENT BY : MS. B. JAISHEILA C.A & ' '( /DATE OF HEARING : 29-09-2016 )* ' '( /DATE OF PRONOUNCEMENT : 30-09-2016 ITA NO.1980 & 1982/2016. :- 2 -: ! / O R D E R PER SHRI ABRAHAM P. GEORGE ACCOUNTANT MEMBER: THESE APPEALS FILED BY THE REVENUE ARE DIRECTED AGAINST THE ORDERS OF THE LD. COMMISSIONER OF INCOME TAX (APPEA LS) COIMBATORE GRANTING THE CLAIM FOR DEDUCTION U/S.80IA OF THE IN COME TAX ACT 1961 (HEREIN AFTER REFERRED TO AS THE ACT) BEFORE SET TING OF EARLIER YEARS NOTIONAL LOSSES. 2. LD. COMMISSIONER OF INCOME TAX (APPEALS) HAD TAKEN A VIEW THAT UNABSORBED DEPRECIATION OF YEARS PRIOR TO THE INITIAL YEAR OF PREFERRING A CLAIM UNDER DEDUCTION U/S.80IA OF THE ACT WAS NOT TO BE NOTIONALLY CARRIED FORWARD AND SET OFF BEFORE GRANT ING SUCH DEDUCTION. THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAD FO LLOWED THE JUDGMENT OF HONBLE JURISDICTIONAL HIGH COURT IN TH E CASE OF M/S. SRI VALAYUTHASAMY SPINNING MILLS LTD VS. ACIT 340 ITR 4 77 . THE CONTENTION OF THE REVENUE BEFORE US IS THAT THE A SSESSEES HAD CLAIMED DEDUCTION U/S 80IA(4) OF THE ACT WITHOUT SETTING OFF OF THE DEPRECIATION OF THE SAID UNITS FOR THE EARLIER YEAR S. AS AGAINST THIS CLAIM OF THE ASSESSEES ARE THAT SUCH DEPRECIATION LOSS WAS ALREADY ADJUSTED AND THEREFORE NOTIONAL LOSS COULD NOT BE BROUGHT FORWARD AND FORCIBLY SET OFF AGAINST THE PROFITS OF THE IMPUGNE D ASSESSMENT YEARS. WE FIND THAT THE ISSUE RAISED IN THESE APPEALS IS S QUARELY COVERED BY ITA NO.1980 & 1982/2016. :- 3 -: THE JUDGMENT OF THE JURISDICTIONAL HIGH COURT IN TH E CASE OF VELAYUDHASWAMY SPINNING MILLS P. LTD (SUPRA ). ONCE EARLIER LOSSES HAD BEEN SET OFF AGAINST OTHER INCOME THERE WAS NO QUE STION OF NOTIONAL ADJUSTMENT OF SUCH LOSSES AGAINST THE PROFITS OF A GIVEN YEAR AS PER THE ABOVE JUDGMENT WHILE WORKING OUT DEDUCTION CL AIMED U/S 80IA OF THE ACT. SINCE THE CIT(A) HAD FOLLOWED THE JUDGMEN T OF THE JURISDICTIONAL MADRAS HIGH COURT WE DO NOT FIND AN Y REASON TO INTERFERE WITH THE ORDER OF THE CIT(A). 3. IN THE RESULT THE APPEALS OF THE OF THE REVENUE AR E DISMISSED. ORDER PRONOUNCED ON FRIDAY THE 30TH DAY OF SEPTEMBER 2016 AT CHENNAI. SD/- ( . ) (G. PAVAN KUMAR) $ % & / JUDICIAL MEMBER SD/- ( . ) (ABRAHAM P. GEORGE) ' % & / ACCOUNTANT MEMBER +& / CHENNAI / DATED:30TH SEPTEMBER 2016 KV - ' $'./ 0/' / COPY TO: 1 . ! / APPELLANT 3. 1' () / CIT(A) 5. /45 $'6 / DR 2. $% ! / RESPONDENT 4. 1' / CIT 6. 57 8& / GF