Commissioner Of Income Tax,Coimbatore v. M/S. Sri Ranganathar Valves (P) Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS C O R A M THE HON'BLE MR. JUSTICE HULUVADI G. RAMESHANDTHE HON'BLE Dr.JUSTICE ANITA SUMANTH Tax Case (Appeal) No.416 of 2014 Commissioner of Income Tax,Coimbatore.... Appellant Vs M/s. Sri Ranganathar Valves (P) Ltd.,12/45, Thadagam Road,Edayarpalayam, Coimbatore 641 025.... Respondent Prayer:- Appeal filed under Section 260A of the Income Tax,1961, against the Order of the Income Tax Appellate Tribunal,Chennai'A'Bench,dated30.12.2013,inI.T.A.No.1577/Mds/2012, against the Order of the Commissionerof Income Tax(A) in ITA.No.20A/11-12 dated 21.05.2012 againstthe Deputy Commissioner of Income Tax, Coimbatore dated29.03.2011 for the Assessment Year 2009 – 10. J U D G M E N T (Judgment of the Court was delivered by Dr.Anita Sumanth, J.,) The above Tax Case Appeal is preferred by the Revenueunder Section 260A of the Income Tax Act, 1961, calling inquestion the correctness of order dated 30.12.2013, passed bytheIncomeTaxAppellateTribunal,Chennai,inI.T.A.No.1577/Mds/2012. 2. The following questions of law, have been raised forconsideration:-“(i) Whether under the facts and circumstances ofthe case, the Hon'ble Income Tax Appellate Tribunalwas right in law in holding that assessee isentitled to deduction under Section 80 IA withoutsetting off the losses/unabsorbed depreciationpertaining to the windmill power generationbusiness, which were set off in the earlier yearhttps://hcservices.ecourts.gov.in/hcservices/against other business income of the assessee, following the decision of the jurisdiction HighCourt in the case of M/s.Velayudhasamy SpinningMills V. Assistant Commissioner of Income Tax (340ITR 477) when the same is pending appeal before theHon'ble Supreme Court in SLP Civil No.1136/11?(ii) Whether under the facts and circumstances ofthe case, the Income Tax Appellate Tribunal wascorrect in holding that the initial assessmentyear in Section 80 IA(5) would only mean the yearof claim of deduction under Section 80 IA and notthe year of commencement of eligible business?(iii) Whether on the facts and in the circumstancesof the case, the Tribunal was right in holding thatthe assessee has the option to choose thefirst/initial assessment year of claim fordeduction under Section 80 IA?" 3. The issue relating to the claim of depreciation onwindmill without setting off the losses/unabsorbeddepreciation of earlier years stands covered against theRevenue and in favour of the assessee by a decision of thiscourt in M/s.Velayudhasamy Spinning Mills V. AssistantCommissioner of Income Tax (340 ITR 477), affirmed by theSupreme Court. 4. In this view of the matter, there is no merit in theDepartmental appeal which stands dismissed at the stage ofadmission. No costs. Sd/- Assistant Registrar(CS II) //True Copy// ssk To 1.The Deputy/Assistant Registrar, Income Tax Appellate Tribunal, Chennai 'A' Bench. Income Tax Appellate Tribunal, Chennai 'A' Bench. 2.The Commissioner of Income Tax, (Appeals – I), Coimbatore. (Appeals – I), Coimbatore. 3.The Deputy Commissioner of Income Tax, Company Circle – I(3), Coimbatore. Company Circle – I(3), Coimbatore. +1cc to Mr.T.R.Senthilkumar, Advocate, S.R.No.4864 +1cc to Mr.S.Sridhar, Advocate, S.R.No.4697T.C.A.No.416 of 2014 TM(CO)https://hcservices.ecourts.gov.in/hcservices/CA(28/02/2017)