Https://Hcservices.ecourts.gov.in/Hcservices v. Assistantcommissioner Of Income Tax (340 Itr 477), Affirmed By Thesupreme Court

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 25.1.2017C O R A MTHE HON'BLE MR. JUSTICE HULUVADI G. RAMESHANDTHE HON'BLE Dr.JUSTICE ANITA SUMANTH Tax Case (Appeal) No.44 of 2013 Commissioner of Income Tax,Coimbatore.... AppellantVs M/s. Sri Ranganather Industries P Ltd.,12/45, Thadagam Road,Edayarpalayam, Coimbatore 641 025.PAN: ... Respondent Prayer:- Appeal filed under Section 260A of the Income Tax,1961, against the Order of the Income Tax Appellate Tribunal,Chennai 'D' Bench, dated 27.8.2012, in I.T.A.No.1207/Mds/2012for the Assessment year 2009-10 against the order of theCommissioner of Income Tax (Appeals)-I, Coimbatore vide AppealNo.20/11-12 dt.21.03.2012 for the Assessment year 2009-10against the order of Deputy Commissioner of Income Tax companycircle-I(3)CoimbatorevideP.A.No/GIRNo.AADCSO183Qdt.29.03.2011 for the Assessment year 2009-10. For Appellant : Mr.T.R.SenthilkumarFor Respondent : Mr. S.Sridhar (Judgment of the Court was delivered by Dr.Anita Sumanth, J.,) The above Tax Case Appeal is preferred by the Revenue underSection 260A of the Income Tax Act, 1961, calling in questionthe correctness of order dated 27.8.2012, passed by the IncomeTax Appellate Tribunal, Chennai, in I.T.A.No.1207/Mds/2012. 2. The following questions of law, have been raised forconsideration:-“(i) Whether under the facts and circumstances of thecase, the Hon'ble Income Tax Appellate Tribunal rightin law in holding that assessee is entitled to https://hcservices.ecourts.gov.in/hcservices/ deduction under Section 80IA without setting off thelosses/unabsorbed depreciation pertaining to thewindmill, which were set off in the earlier yearagainst other business income of the assessee,following the decision of the jurisdiction High Courtin the case of M/s.Velayudhasamy Spinning Mills Vs.Assistant Commissioner of Income Tax (340 ITR 477)when the same is pending appeal before the Hon'bleSupreme Court in SLP Civil 1136/11?(ii) Whether under the facts and circumstances of thecase, the Income Tax Appellate Tribunal was correctin holding that the initial assessment year inSection 80IA(5) would only mean the year of claim ofdeduction under Section 80IA and not the year ofcommencement 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 for deductionunder Section 80-IA?" 3. The issue relating to the claim of depreciation onwindmill prior to setting off of 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 Vs. 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 //True Copy// Sub Assistant Registrar ssk To 1. The Income Tax Appellate Tribunal, D Bench, Chennai. D Bench, Chennai. 2. The Commissioner of Income Tax(Appeals)I, Coimbatore. 3. The Deputy Commissioner of Income Tax, Company circle I(3), Coimbatore. 4. The Asst. Registrar, Income Tax Appellate Tribunal, IIIrd floor, Rajaji Bhavan, Besent Nagar, Chennai-90. +1cc to Mr.Sakthi kumar, Advocate, S.R.No.4865+1cc to Mr.Sridhar, Advocate, S.R.No.4696 SKV(CO)RS(08/03/2017) T.C.A.No.44 of 2013